Latest news with #PTCL
Express Tribune
16-07-2025
- Business
- Express Tribune
PTCL to present $1b investment plan at hearing
Listen to article Amid controversy over swelling losses, Pakistan Telecommunication Company Limited (PTCL) is set to convince the regulator about its $1 billion investment plan in a bid to get approval for merger with Telenor. A team of PTCL will present the company's case at a hearing to be held at the Competition Commission of Pakistan (CCP) on Wednesday. According to PTCL officials, the telecom firm had submitted an investment plan worth $1 billion to the CCP to pave the way for its merger with Telenor. However, according to the officials, the regulator raised questions about the investment plan and a PTCL team will respond to the queries at the hearing. PTCL may get approval for the merger if it is able to convince the regulator about its settlement plan linked with $1 billion worth of investment. The merger application has been pending for the past almost one year as the PTCL management has yet to provide relevant documents to address queries. The CCP has sought timelines and details of areas where PTCL will make the proposed investment. IT minister earlier stated that the CCP was an independent institution and it would decide about the merger deal. A senior IT ministry official pointed out that the issue of outstanding privatisation payments of $800 million had also remained unresolved. Though a settlement was reached between the previous government and the PTCL management for releasing $640 million, the company has not even provided that amount. There has been a dispute between the government of Pakistan and UAE-based Etisalat – the buyer of PTCL – over pieces of land. PTCL has started selling prime land, which it owns in Pakistan, despite no resolution of the row. In a meeting held on Monday, the National Assembly Standing Committee on IT expressed dismay over the statements given by PTCL officials and warned them of action over the sale of land. During the second phase of the review of merger application, the CCP sought details of PTCL's market position from the Pakistan Telecommunication Authority (PTA) to determine that the merger would not reduce competition or strengthen the dominant position of the parties concerned. The documents submitted by the PTA showed that instead of responding to the objections made by the telecom regulator, the PTCL management challenged notices in the Sindh High Court. PTCL submitted an application for merger with Telenor Pakistan to the CCP on February 29, 2024 but there were flaws, which were rectified on March 6. According to the biannual (July-December FY25) performance report released by the Central Monitoring Unit of the Ministry of Finance, PTCL registered a loss of Rs7.2 billion during the period, which took its accumulated losses to Rs43.6 billion. The report noted that PTCL had moved up the ranking of loss-making state-owned enterprises (SOEs), rising from 10th position in the first half of FY24 to seventh place in FY25. The finance ministry warned that the proposed acquisition of Telenor by PTCL could further destabilise the group's finances, if not carefully managed. It added that the move could also result in hindering PTCL's digital transformation goals and limit its ability to invest in core growth areas over the coming years. It also highlighted PTCL's outstanding pension liabilities of Rs42.84 billion. PTCL had posted a net profit of Rs20.78 billion in 2005-06 – the financial year when its management control was handed over to Etisalat. The UAE-based firm acquired a 26% stake whereas the government of Pakistan kept 62% shareholding. The remaining 12% shares are held by public investors through the stock market.
Express Tribune
14-07-2025
- Business
- Express Tribune
NA panel seeks action over PTCL document delay
The Parliamentary Panel on Monday expressed serious concerns over a delay in submitting documents related to a property transaction and recommended disciplinary action against Pakistan Telecommunication Company Limited (PTCL). MNA Aminul Haque of MQM chaired the National Assembly's Standing Committee on Information Technology and Telecommunication. The chairman expressed displeasure over PTCL's failure to respond in time to queries regarding the sale and purchase agreements of its properties. PTCL President and Etisalat Group CEO Hatem Bamtaref, who attended the meeting via Zoom, was criticised for the delayed submission of briefing papers. Committee member Sher Ali called for formal action against PTCL, stating that reprimands were insufficient. Mahesh Kumar also raised concerns about the stalled merger between Ufone and Telenor. He accused Telenor of intentionally causing service disruptions. The PTA chairman said the merger case is currently under review by the Competition Commission of Pakistan (CCP). Another member, Sadiq Memon, expressed serious concerns about reports of Microsoft scaling down its operations in Pakistan. Minister of State for IT and Telecom Shaza Fatima Khawaja clarified that Microsoft and Google have engaged in large-scale certification programmes in Pakistan. While Microsoft had laid off 16,000 employees globally over the past year, she said it remains unclear if any Pakistan-based employees were affected. She also revealed ongoing efforts to convert Microsoft's liaison office into a full operational setup in Pakistan and hinted at Google's potential entry into the local market. During the session of the NA body, Etisalat Group's Bamtaref underscored strong UAE-Pakistan ties and added that the group was focusing on emerging technologies like 5G and artificial intelligence. Officials from the Privatisation Commission informed the panel that PTCL's privatisation was finalised in 2006 under an international agreement, though they offered to share further details in an in-camera session. Committee members objected to the lack of prior notice for this request. PTCL officials clarified that the property agreement in question was between the Government of Pakistan and Etisalat and had no direct linkage with PTCL. The chairman postponed the agenda item to the next session and agreed to hold the upcoming meeting in-camera. On broader telecom issues, committee member Zulfiqar Ali lodged complaints about weak mobile signals in his constituency. The USF CEO assured him that the approved project would be completed. The PTA chairman also briefed the parliamentary panel on the status of Long Distance and International (LDI) operators, revealing that 9 out of 21 companies have pending license renewal cases, with over 100 related matters in court. Due to the complexity, the IT minister recommended forming a sub-committee to hear all stakeholders. The chairman agreed to this proposal. The PTA chairman confirmed that the interior ministry had ordered the suspension of internet services in Panjgur due to security concerns. He also revealed that over 100 telecom towers have been damaged in Balochistan, including three completely destroyed between July 9 and 12. Committee member Pauline Baloch emphasised the worsening law and order situation in Balochistan, noting that roads remained blocked for hours and basic services were under threat. Khawaja proposed holding a joint meeting to address these challenges.
Business Recorder
10-07-2025
- Politics
- Business Recorder
Employees transferred from T&T to PTC, and subsequently to PTCL: SC judgement
ISLAMABAD: The Supreme Court by majority of 2 to 1 held that the employees transferred from T&T to PTC, and subsequently to PTCL, retained not only their right to pensionary benefits but also the character of those benefits as dynamic and evolving rights. A three-judge, headed by Chief Justice Yahya Afridi and comprising Justice Aminuddin Khan and Justice Ayesha A Malik, on Thursday, announced the judgment regarding of pension of PTCL ex-employees. Multiple judgments of various High Courts were impugned before the Court, essentially on the same subject matter being the entitlement of the employees of the erstwhile Telegraph and Telephone (T&T) Department to receive the same pension and pensionary benefits accorded to civil servants, as notified by the federal government from time to time. Justice Yahya and Justice Amin disagreed with the judgment of Justice Ayesha. Justice Yahya judgment said while employees transferred from T&T to Pakistan Telecommunication Corporation (PTC), and subsequently to Pakistan Telecommunication Company Limited (PTCL) ceased to be civil servants, the statutory framework governing their transfer safeguarded their pensionary entitlements in full: not just as frozen benefits fixed at the time of transfer, but as living rights that were to progress in accordance with prevailing standards applicable to similarly situated public servants. The scheme under Section 9 of the Pakistan Telecommunication Corporation Act, 1991, and Section 36 of the Pakistan Telecommunication (Reorga-nization) Act, 1996 guarantees the continuation of these entitlements, and the administrative mechanism created under the PTCL Act, including the establishment of Pakistan Telecommunication Employees Trust (PTET) was intended to facilitate, not frustrate, this guarantee. PTCL and PTET are duty-bound to ensure that the full measure of these entitlements is met, and any interpretation that reduces these rights to static or discretionary payments is contrary to the legislative mandate. The majority judgment clarified that this conclusion and these dispositions, have not been reached in ignorance of the financial concerns raised by PTCL and PTET. The submissions regarding the financial burden and claims of fiscal unsustainability have been duly considered. However, financial difficulty does not absolve a statutory entity of its legal obligations. If the existing pension model is incapable of sustaining the financial burden, it is the model that must be recalibrated, not the statutory entitlements curtailed. That said, the practical challenges identified by PTCL and PTET are real, and it is recognised a rigid timeline for disbursement may not be financially viable. Accordingly, PTCL must acknowledge its continuing financial liability towards former civil servants and reflect this as a declared liability on its financial records in accordance with applicable accounting and corporate law principles. Thereafter, PTCL, through PTET, may determine a feasible disbursement schedule for revised pensionary payments, the needful be done within 90 days, and that the payment process remains transparent and equitable in addressing the rightful claims of the affected pensioners. The chief justice held; CPLA Nos. 412, 420–424, 461–463, and 506 of 2019; CPLA Nos. 424-K, 357-K, and 365-K of 2019; CPLA Nos. 6005, 6006, 6023–6030, 6087–6096, 6101–6106, 6268–6273, and 6364 of 2021, 6453-6456 of 2021; and CPLA Nos. 134–135 of 2022 are dismissed. The impugned judgments of the High Courts are upheld to the extent that they grant pensionary revisions to those transferred employees who were civil servants at the time of their transfer. Such employees are entitled to the continuation of pensionary benefits, including revisions notified by the federal government. The CPLA Nos 2107, 2140, 2141, 2143, 2144, 2145, 2146, and 2147 of 2022 are allowed. The impugned judgments are set aside. The petitioners, being civil servants at the time of transfer, are entitled to continued pensionary revisions as per federal government notifications. The CPLA Nos 2138, 2139, and 2142 of 2022 are allowed, subject to classification confirmation. The matters are remanded to the relevant High Court for factual determination of the service status of the petitioners at the time of transfer. If the petitioners are found to have been civil servants, they shall be entitled to the continuation of pensionary benefits, including revisions notified by the federal government. The CPLA Nos 6205, 6222-6225, 6332, 6333, 6358-6363, 6379, 6437, 6485, 6545-6550, 6553-6556 of 2021, and CPLA Nos 30, 112-114, 118, 139-145, 329, 330, 368-371, 465-471, 645 of 2022 are remanded for determination whether each petitioner held civil-servant status at transfer end, and if so, for corresponding pension revisions. The CPLA No 426-K of 2019; CPLA Nos 1919 and 2066 of 2019; and CPLA Nos 369, 373, and 603 of 2018 are dismissed, as the petitioners either availed VSS, were not civil servants at the time of transfer, or did not establish a statutory entitlement to pensionary revisions under the applicable legal framework. The CPLA Nos 2197, 2199, and 2200–2205 of 2022; CPLA Nos. 2563 and 2564 of 2022; and CPLA Nos 495-K and 496-K of 2023 are remanded to the relevant High Court for determination of the petitioners' employment classification and entitlement to relief in light of the legal principles laid down in this judgment. The CA No 1509 of 2021 is dismissed, with no order as to costs. Crl.O.P. No 28/2018 in Crl.O.P. No 54/2015; Crl.O.P. Nos 56/2018 and 84/2018 in C.P.L.A. No 1643/2014; Crl.O.P. No 144/2022 and Crl.O.P. No 29/2023 in C.P.L.A. No 568/2014 are dismissed as infructuous. Crl.M.A. No 139/2025 in Crl.O.P. No 56/2018 is also dismissed. CMA Nos. 5783/2022, 5641/2022, 5784/2022, 5785/2022, 5786/2022, 5624/2022, 5787/2022, 5788/2022, 5638/2022, 5789/2022, 5883/2022, 5862/2022, 6066/2022, 6075/2022, 6076/2022, 6079/2022, 6074/2022, 6601/2022, 6602/2022 (interim applications for injunctive relief in various CPLAs) are disposed of as infructuous, the main matters having been decided. CMA Nos. 1470/2020 and 7698/2022 in CPLA No. 463/2019; CMA Nos. 1636 and 1637/2022 in CPLA No. 6005/2021; CMA Nos. 1633 and 810/2022 in CPLA No. 6358/2021; and CMA No. 11521/2023 in CPLA No. 6379/2021, and CMA No. 7515/2024 in CPLA No. 6104 of 2021 all seeking impleadment, are dismissed. CMA No. 8153 of 2023 in CPLA No. 424-K of 2019, seeking de-clubbing of the petition, is dismissed. Copyright Business Recorder, 2025
Business Recorder
01-07-2025
- Business
- Business Recorder
Sindh Bank selects PTCL to enhance bank's digital connectivity infrastructure
KARACHI: Pakistan Telecommunication Company Limited (PTCL) and Sindh Bank have signed an agreement for deployment of SD-WAN (Software-Defined Wide Area Network) at 330 branches of Sindh Bank. SD-WAN is a smart way for businesses to manage internet and network connections across different locations. It helps make data travel faster, more securely, and at lower cost by using software instead of just hardware. Syed Assad Ali Shah, Deputy CEO, Sindh Bank and Asif Ahmad, Group Chief Business Solutions Officer, PTCL & Ufone 4G signed the agreement in the presence of Muhammad Anwaar Sheikh, President & CEO, Sindh Bank at a special ceremony recently held at Sindh Bank Head Office in Karachi. Also, present at the ceremony were Basharat Qureshi Group VP Enterprise, Sayyed Imran Bukhari, Group VP B2B Strategy, Umar Farooqi, Group Director Enterprise PTCL, Adnan Siddiqui, CIO Sindh Bank, Dilshad Hussian, CFO Sindh Bank and Syed Zeeshan ul Haq, Head Infrastructure Sindh Bank, were also present on the occasion, along with other senior officials. PTCL is providing Sindh Bank with its state-of-the-art infrastructure and platform solutions that are equipped with latest technology & managed security. During the signing ceremony, Asif Ahmed, Group Chief Business Solutions Officer PTCL & Ufone 4G said, 'We are pleased to sign an agreement with Sindh Bank to support them in fulfilling their business needs. PTCL, being a national company, is leading the digitalization effort across the country. Through such partnerships, PTCL continues to play its key role in the development of telecom infrastructure by providing innovative and secure solutions to the corporate sector that will further contribute towards the overall economic growth of the country.' On the occasion, Muhammad Anwaar Sheikh, President & CEO Sindh Bank, said, 'We are pleased to sign this agreement with PTCL as our trusted partner for infrastructure platform solutions as a part of the Bank's focus on adopting state-of-the-art and secure technology solutions for connectivity and digitalization. This partnership signifies a transformative step forward in the Bank's approach to infrastructure, platforms and data management. By leveraging PTCL's advanced infrastructure and telecommunications expertise, Sindh Bank aims to achieve an enhanced operating leverage, a stronger security and data protection posture, and reduced time-to-market of products and services as the Bank continues on its journey to offer a digitally enabled financial lifestyle for its customers and partners.' PTCL and Sindh Bank place highest level commitment to provide best-in-class services to their customers across various industries in Pakistan. This agreement is part of the growth momentum in the diverse areas of ICT and Security Solutions, which is key to a digital banking eco-system in Pakistan. Copyright Business Recorder, 2025
Business Recorder
30-06-2025
- Business
- Business Recorder
Interview with Jon Omund Revhaug, Executive Vice President and Head of Telenor Asia: ‘Telecom restructuring is critical for Pakistan's digital progress'
Jon Omund Revhaug, Executive Vice President and Head of Telenor Asia, leads Telenor's operations across Bangladesh, Malaysia, Thailand, and Pakistan from his base in Singapore. With over 24 years at Telenor, he brings deep operational and leadership experience to one of Asia's most dynamic telecom portfolios. Previously, he served as EVP and Head of Telenor Nordics, as well as COO for regional IT and shared services, and played a key role in the merger of True and DTAC in Thailand. He also led Telenor Myanmar through the COVID-19 pandemic and a military coup and helped establish the Group's global sourcing arm, TPC. Revhaug currently chairs Grameenphone in Bangladesh and sits on the boards of CelcomDigi in Malaysia and True Corporation in Thailand. A biologist and economist by training, he holds a master's in management from BI Norwegian Business School. At a time of fast digital transformation, Revhaug is driving Telenor's mission to connect societies and build resilient, future-ready networks across Asia. Following are the edited excerpts of a recent conversation BR Research had with him: BR Research: Telenor's Exit from Pakistan: Telenor announced the sale more than a year ago. Why, after 20 years in Pakistan, did the company decide to divest its telecom assets to PTCL? Jon Omund Revhaug: Following a thorough review in 2021, Telenor decided to exit the Pakistani telecom sector, aligning with the company's strategic direction of investing in markets where it can be a number one player. We did not see that for Pakistan. Following this decision, Telenor signed an agreement with Pakistan Telecommunication Company Limited ('PTCL') in December 2023 for the sale of its Pakistan operations. PTCL was selected as the preferred buyer after a competitive process that considered the fact that PTCL is majority-owned by the Government of Pakistan and that e&, PTCL's parent company, is majority-owned by the Government of the United Arab Emirates (UAE). We believe Pakistan's telecoms sector will benefit from consolidation. Selling Telenor Pakistan to PTCL will create new growth opportunities, benefiting consumers in Pakistan. BRR: What has been the response from Telenor's customers and employees in Pakistan regarding this transition? JOR: It has been business as usual for Telenor Pakistan until the sale is concluded. Our customers and employees continue to trust the Telenor brand and its services. BRR:The Competition Commission of Pakistan (CCP) has yet to approve the Telenor-PTCL merger. How is this uncertainty affecting Telenor's strategic planning and operations in the country, and how are you mitigating associated risks? JOR: While the transaction closing timelines remain uncertain, Telenor's strategy to exit Pakistan remains unchanged currently. After a thorough strategic review, Telenor decided to exit the Pakistan telecom sector in line with our company's strategic direction. BRR: PTCL's leadership has warned that further delays could jeopardize the agreement. How is Telenor preparing for such a scenario, and what contingencies are in place? JOR: We continue to engage with the relevant authorities to obtain the necessary approvals. Considering the substantial merits of the case for all stakeholders, we still anticipate receiving the required approvals in the coming months. We hold the decision to exit and do not have any other plans currently. BRR: The 5G spectrum auction has now been postponed due to the merger deadlock. What are the potential repercussions for Telenor's technology roadmap and Pakistan's digital advancement? JOR: Running a successful 5G auction offers a good example of how Pakistan's telecoms sector would benefit from consolidation. A swift resolution of the ongoing sale process would create a stronger second-position player in the market, one who is better positioned to invest in critical digital infrastructure, resilient data networks, and future technologies that can drive innovation at an accelerated pace. Telecom is a capital-intensive industry, and the current industry structure does not support meaningful investment in the sector. Market leader Jazz has a revenue market share of 44 percent, compared to Telenor Pakistan's 20 percent and PTCL's estimated 12 percent. Telenor analysis shows that companies with a market share below 20% cannot sustain over time. BRR: More broadly, how do you see this delay affecting Pakistan's digital infrastructure development and telecom competitiveness? JOR: According to the Pakistan Economic Survey FY 2025, telecom investments have dropped by more than 60 percent in less than four years, highlighting that a restructuring of the sector is needed to ensure future investments. A lack of investment could also make Pakistan more vulnerable to cyber threats. In 2024, Pakistan experienced an 18 percent surge in phishing attempts compared to 2023. The merger of PTCL with Telenor Pakistan will create a stronger second player in the market, one that is better positioned to invest in critical digital infrastructure in Pakistan, thereby building safer and more resilient data networks necessary for further industrial development. BRR: You have overseen major mergers in Malaysia and Thailand. How have those consolidations benefitted customers in those markets? JOR: By combining the strengths of the two entities, the merged companies in Malaysia and Thailand have been able to expand and improve network coverage, provide better customer service platforms, and offer customers more choices. Customers experience significant improvements in network quality and overall experience following mergers. For example, in Thailand, 4G coverage from Dtac and True was 96.9 percent and 99 percent, respectively, while 5G coverage was 46.8 percent and 85.6 percent, respectively, before the merger. Following the merger, the combined networks now offer 99.2 percent 4G coverage and 90 percent 5G coverage. As companies with scale, they are also better positioned financially to invest in advanced technologies, such as AI and cloud computing. This drives innovation and creates more choices for customers. For example, CelcomDigi's innovation centre in Kuala Lumpur, launched last year, is quickly becoming the country's leading innovation hub, showcasing AI, 5G, IoT, and robotics use cases across eight verticals and industries. BRR: How do you view Telenor Pakistan in comparison with other assets in your Asia portfolio? JOR: Telenor's strategy in Asia is to build number-one positions in the markets we operate in, with sufficient scale for significant infrastructure investments. While Telenor's decision to exit Pakistan's telecoms market remains in effect, we continue to be impressed with Telenor Pakistan's resilience and what they have achieved in otherwise challenging circumstances. This is an extremely resilient team; both I and our Global CEO highly appreciate their efforts amidst the ongoing sale process. JOR:What is your overall view on the growth prospects of the telecom sector in Pakistan over the next few years? JOR: While there is tremendous untapped potential, we want to emphasize again that the financial sustainability of the telecom industry to continue to invest and bring more online continues to be under significant pressure. The average revenue per user (ARPU) in Pakistan's mobile sector is one of the lowest globally, at below US$1, compared to the global average of US$8, which is insufficient to cover dollar-denominated costs, such as spectrum fees and equipment imports. We believe the restructuring of the sector would be beneficial. BRR: Telenor is exiting telecom but retaining a stake in Easypaisa. Can you explain the rationale behind this decision and what potential you see in Pakistan's fintech ecosystem? JOR: The strategic decision made was to exit the telecom sector in Pakistan for the reasons explained above. Easypaisa, a joint venture between Telenor and Ant Financial, is not part of the Telenor Pakistan transaction. BRR: Do you see Easypaisa evolving beyond a wallet into a full-fledged digital financial services platform? JOR: Earlier this year, we were proud that Easypaisa was the first digital bank to receive approval for commercial operations in Pakistan. Operating now as an Easypaisa digital bank, this marks the start of a new chapter in Pakistan's banking sector, bringing digital banking services to millions across the country. With innovative products and services on the horizon, Easypaisa Digital Bank is poised to lead from the front, driving financial empowerment for millions across Pakistan. Easypaisa is also offering a range of savings, investment, and insurance products in addition to digital and traditional lending as part of its ambitions to become a leading financial ecosystem in Pakistan. Copyright Business Recorder, 2025
