UAE Telecom Giant Mulling Exit From Pakistan Market Over Geopolitical Tensions, Global Uncertainty

Last Updated:April 30, 2026, 10:51 IST

Etisalat is reviewing its stake in Pakistan Telecommunication Company Ltd as part of a global portfolio optimisation exercise, with no final decision yet.

A leading Middle Eastern business group is reviewing its exposure to Pakistan’s telecom sector, potentially paving the way for an exit from Pakistan Telecommunication Company Ltd (PTCL), according to a report by Dawn.

The development is part of a portfolio optimisation exercise being undertaken by Gulf investors across multiple markets.

Citing background discussions with sources in diplomatic and financial sectors, the report mentioned that the plans of Etisalat, now known as e&, remain at a preliminary assessment stage, with no final decision taken so far.

Insiders indicated that the review is driven by global macroeconomic uncertainty, regional geopolitical tensions, and evolving capital allocation strategies among sovereign-linked investors.

“This is part of a wider internal review being undertaken by Gulf investors across multiple jurisdictions. It is not specific to Pakistan, nor is it indicative of any immediate divestment decision," an official privy to the development said, as quoted by the report.

There has been no official confirmation from UAE stakeholders or Pakistan’s finance division.

PTCL SAYS UNAWARE OF ANY SHAREHOLDER MOVE

The report also mentioned that PTCL’s long-term business plan had recently been approved by its board and shareholders.

PTCL is not aware of shareholders’ plan of [any] change at this stage," the company said in its statement.

PTCL remains a strategically important entity for Pakistan despite its mixed ownership structure.

The government and its entities hold around 62 per cent stake in the company, while Etisalat controls 26 per cent shares along with management control.

The remaining 12 per cent shares are held by private investors through the Pakistan Stock Exchange.

The report mentioned that PTCL has faced continuous losses in recent years but recently returned to profitability following its acquisition of Telenor Pakistan.

LONG-STANDING DISPUTES OVER PTCL DEAL

The report mentioned that Etisalat had acquired PTCL in 2005 through a $2.6 billion bid for a 26 per cent stake with management control.

However, it stopped payments after clearing $1.8 billion, withholding $800 million over the Pakistani government’s failure to transfer certain PTCL properties.

The two sides have held multiple discussions regarding deductions for over 100 non-transferable properties and settlement of outstanding dues, but have yet to reach an agreement.

News world UAE Telecom Giant Mulling Exit From Pakistan Market Over Geopolitical Tensions, Global Uncertainty

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