ISLAMABAD: With the intervention of the Special Investment Facilitation Council (SIFC), the Competition Commission of Pakistan (CCP) has started to move towards granting approval for the merger of Telenor Pakistan with Pakistan Telecommunications Limited (PTCL).
The letter forwarded by the CCP to PTCL’s lawyer Rahat Kaunan Hassan, references Section 11(11) of the Competition Act 2010 and offers a new settlement option to PTCL.
According to sources in PTCL, the CCP’s proposal includes an investment of approximately $1 billion by the UAE-based telecom company e& (formerly Etisalat), which holds management control of PTCL.
The sources said the CCP had requested a timeline and details regarding the areas of investment to be made by e&.
Clause 11 of Section 11 states that if the commission determines that the merger transaction under review does not meet the specified criteria, it may prohibit the transaction. The law also allows the CCP to approve the transaction with conditions laid out by the commission or approve it subject to the undertakings entering into legally enforceable agreements as specified in the order.
Sources in the IT ministry said the decision on the PTCL merger application had been pending for nearly a year, as the company’s management had not provided the necessary documents in response to several queries.
A senior official said the issue of an outstanding payment of $800 million remains unresolved. A settlement had been reached between the previous government and PTCL management at $640m, but PTCL has yet to pay the agreed amount. The new investment option of $1bn was reached after the intervention of the SIFC, as the PTCL management had approached the council.
Published in Dawn, April 9th, 2025
