Islamabad – The proposed merger between Telenor Pakistan and Pakistan Telecommunication Company Ltd (PTCL) has hit another roadblock as the Competition Commission of Pakistan (CCP) raised strong objections over PTCL’s financial capability, business ethics, and lack of transparency in key submissions.
According to sources, the CCP highlighted PTCL’s repeated failure to provide required documentation and demanded detailed clarifications on its post-merger investment commitments. The regulator questioned whether Etisalat (e&), PTCL and Ufone’s UAE-based parent, intends to inject fresh equity to cover existing losses and fund future capital expenditures — including participation in Pakistan’s upcoming 5G spectrum auction.
The commission directed PTCL to commit to binding investment obligations from its earlier business plan and to disclose exact sources of funding for planned outlays. With both PTCL and Ufone incurring significant losses, regulators sought clarity on how the merged entity expects to achieve profitability, and whether financing will come from bank loans or equity injections.
Concerns also extend to PTCL’s business practices. The CCP flagged a lack of transparency in data related to international direct dialling (IDD) services, demanding precise details of volumes, rates charged between 2022 and 2024, and billing records between PTCL and Ufone. Comparisons with competitors Jazz, Zong, and Telenor were also requested.
Discrepancies in PTCL’s financial reports added to regulators’ scepticism. Revenue streams under “Other Core Products” and “Other Retail/Wholesale” showed large amounts with no supporting data on service volumes or pricing. Key information on party transactions, transfer pricing, and access agreements was also absent.
In its official correspondence, the CCP stated: “PTCL has again not provided the exact information in these questions and has given generic statements instead of providing the exact data/information.”
The commission warned that the lack of clear financial and operational strategies raises doubts over the merger’s viability and its potential impact on competition in Pakistan’s telecom market. Unless PTCL addresses these gaps with concrete commitments, the deal faces continued uncertainty.
