PTCL-Telenor Merger Nears CCP Approval Backed by SIFC

ISLAMABAD: In a major development, the Competition Commission of Pakistan (CCP) is preparing to approve the PTCL-Telenor merger, following intervention from the Special Investment Facilitation Council (SIFC), TechJuice has exclusively learned.

The CCP has initiated formal proceedings to approve the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL). This progress comes after SIFC’s involvement, signaling a significant step toward reshaping Pakistan’s telecom sector through the PTCL-Telenor merger.

According to a letter sent by PTCL’s legal counsel, Rahat Kosar Hassan, to the CCP, reference has been made to Section 11(11) of the Competition Act, 2010, under which PTCL has submitted a revised settlement offer.

Sources reveal that the proposed deal includes a $1 billion investment from UAE-based telecom giant e& (formerly Etisalat), which is also the majority stakeholder in PTCL. CCP has reportedly asked for a detailed timeline and investment breakdown before giving the final nod.

Section 11(11) allows the Commission to approve a transaction if it determines the merger does not substantially lessen competition under its review. The law also permits CCP to grant approval with enforceable legal agreements or conditions attached.

Officials from the Ministry of IT stated that PTCL’s merger request had been pending for nearly a year due to delays in submitting required documentation in response to various queries.

A senior official confirmed that a lingering payment issue of Rs800 million remains unresolved. A previous settlement of $640 million between the former government and PTCL’s management had not been fulfilled. However, the emergence of a $1 billion fresh investment plan followed PTCL management’s approach to SIFC for resolution.

Upon acquiring Norwegian firm Telenor, Ufone Pakistan will surpass 75 million mobile subscribers, positioning it as the country’s second-largest telecom operator.

Industry insiders believe the move will intensify telecom competition in Pakistan, resulting in improved mobile services for consumers. Meanwhile, the government continues its initiatives to advance 5G mobile technology across the country.