Pakistan Telecommunication Company Limited (PTCL) is preparing to defend its $1 billion investment plan during a hearing with the Competition Commission of Pakistan (CCP) scheduled for July 17, 2025
The merger application, submitted in February 2024, has faced scrutiny due to financial losses, unresolved privatisation payments, and concerns about market dominance. PTCL reported accumulated losses of Rs 43.6 billion in the first half of FY25, raising doubts about the deal’s viability. Critics, including the International Monetary Fund (IMF) and competitors such as Zong, have expressed concerns about potential reductions in competition and the associated fiscal risks.
PTCL submitted a $1 billion post-merger investment plan to the CCP, aiming to enhance infrastructure and digital services. The hearing will address CCP’s questions on timelines, investment areas, and feasibility. Approval hinges on convincing regulators that the merger won’t create a monopoly, as Zong argued in earlier hearings.
Read: CCP Warns PTCL-Telenor Merger Could Stifle Telecom Competition in Pakistan
The application, initially flawed and rectified in March 2024, entered Phase II review in September 2024. Delays stem from incomplete documents and PTA data on PTCL’s market share. The IT Minister stated the CCP’s independence in deciding the deal.
PTCL reported Rs7.2 billion losses in July-December FY25, pushing accumulated losses to Rs43.6 billion, ranking it seventh among loss-making state-owned enterprises. The Finance Ministry warned that the merger could strain finances and hinder digital goals, citing Rs 42.84 billion in pension liabilities. 3
A $800 million privatisation payment dispute with Etisalat (UAE-based buyer since 2006) remains unresolved. Only $640 million was settled, but the amount remains unpaid. PTCL sells land despite disputes, drawing criticism from the National Assembly IT Committee. 3 Etisalat holds 26%, government 62%, public 12%. PTCL was profitable (Rs 20.78 billion in 2005-06) prior to privatisation.
The merger delays Pakistan’s 5G auction, planned for mid-2025. 1 11 CCP seeks PTA data to ensure competition; PTCL challenged PTA notices in court. If approved, PTCL-Ufone-Telenor could control a 50% market share, raising concerns about a potential monopoly.
