IMF seeks clarity on UAE’s $1 billion telecom pledge linked to PTCL deal

The International Monetary Fund (IMF) has requested official details from Pakistan regarding a reported $1 billion investment pledge by UAE-based telecom giant e& (formerly Etisalat) in the country’s telecommunications sector, sources told Nukta.

The informal commitment, tied to the proposed merger of Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan, has drawn scrutiny from the global lender amid Pakistan’s ongoing negotiations for economic support.

Senior government sources said officials from the Pakistan Telecommunication Authority (PTA), Ministry of Information Technology and Telecom, and the Competition Commission of Pakistan (CCP) are expected to brief the IMF mission on the matter this week.

The merger, which would consolidate two major players in Pakistan’s telecom market, remains under a second-phase review by the CCP. In a recent communication to PTCL, the regulator invoked Section 11(10) of the Competition Act, 2010, which governs mergers that could reduce market competition.

While the law permits approval if a merger enhances efficiency or prevents the collapse of a financially struggling firm, the CCP has yet to issue a final decision.

Sources revealed that e&, which holds management control of PTCL, has informally pledged to invest $1 billion over the next three to five years—contingent on the merger’s approval. The offer aligns with the company’s strategy to expand its presence in Pakistan’s high-growth telecom and digital infrastructure sectors.

“The PTCL group and CCP have been exchanging correspondence for months,” a source said. “The delay has prompted intervention from the Special Investment Facilitation Council (SIFC), which aims to fast-track foreign investment in strategic sectors.”

When contacted by Nukta, a CCP spokesperson stated: “The Commission is a quasi-judicial body and reviews mergers under Section 11 of the Competition Act. Upon completion, it issues a speaking order, which is published on its website. The Commission does not comment on ongoing reviews.”

PTCL declined to comment, while the Finance Ministry did not confirm or deny whether the IMF had formally sought details on the matter.