A report published by Dawn on April 30 triggered a denial from Pakistan’s largest telecom company. However, the question it raised still lingers. What will happen between e& and PTCL? Dawn cited diplomatic and financial sector sources claiming that e&, formerly Etisalat, has been reviewing its presence in Pakistan’s telecom sector. A review that could potentially lead to the headlines ‘e& exits PTCL’. e& did not respond to Dawn’s request for a comment. PTCL, on the other hand, denied the claims entirely.
The Relationship, Explained
e& purchased 28 percent of PTCL’s stake along with the management control in 2005. This was done with a $2.6 billion aid, making it one of the largest foreign investments in Pakistan’s history at time. However, the amount was never paid in full. e& paid $1.8 billion withholding the remaining $800 million. They cited the Pakistani government’s failure to transfer the PTCL properties to a privatised entity. This dispute has remained unresolved for two decades.
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Today, the Pakistani government holds 62 percent of PTCL shares, e& owns 26 percent. The remaining 12 percent are held by the private investors through the Pakistan Stock Exchange. e& not only holds a financial stake in the company but it also manages the shareholders, meaning it runs the company.
Why the Speculations Started?
The Dawn post landed within days of Pakistan completing repayment of its $3.45 billion debt to the UAE. This transaction shifted how the two countries were managing their financial relations. Dawn’s sources describe the review as driven by microeconomic uncertainty and regional geopolitical tensions.
They also cite evolving capital allocation strategies emphasizing that the review is part of a wider reassessment and not just a Pakistan-specific decision. This context matters because UAE capital has been repositioning since the war began. Moreover, e& has also been undergoing restructuring with its new brand identity.
e& and PTCL, The Response
CEO Hatem Bamatraf said during a webinar that “no such decision” was happening at e&. He described the company as PTCL’s managing entity with coordination on budget, strategy, and business planning. In a formal statement, PTCL called the reports “baseless and speculative”. They pointed to the recent strategic actions as evidence of continued commitment. It included acquisition of Telenor Pakistan, Orion Towers, Ufone 5G spectrum acquisition, and fibre network expansion.
PTCL also recorded the first net profit of Rs3.1 billion, over four years in Q1 2026. This makes the exit speculation unusual in corporate timing terms. But the PTCL’s denial statement does not settle the absence of a statement from e&. The company that the entire story is about has said nothing publicly.
e& and PTCL, The Future
Pakistan’s government already has a plan if e& leaves. Saudi Telecom Company and Qatar’s Ooredoo are the names cited as the potential replacement strategic partners. Either of these would be the financial muscle. However, PTCL is simultaneously managing a major merger, 5G rollout, and a return to profitability, all of this under IMF conditions. Neither of the partners would walk into this situation. The exit would also ignite the unresolved $800 million dispute, a conversation on pause since 2005.
As per PTCL’s currently initiated reality, e& stays, a more pressing question arises. Would both sides finally resolve the two-decade-old privatisation dispute? In January 2026, Pakistan’s Deputy Prime Minister, Ishaq Dar visited Dubai specifically to hold talks with Etisalat management of the matter. There was no confirmed outcome. Until the $800 million is settled, the relationship will remain unresolved regardless of what either party publicly announces.
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