Islamabad is buzzing with news that the Competition Commission of Pakistan (CCP) is on the verge of approving the much-anticipated merger between Telenor Pakistan Limited and Pakistan Telecommunication Company Limited (PTCL). This significant development appears to have been expedited by the intervention of the Special Investment Facilitation Council (SIFC), signaling a potential turning point for Pakistan’s telecommunications landscape.
According to reports, PTCL’s legal counsel has submitted a fresh settlement proposal to the CCP, referencing Section 11(11) of the Competition Act 2010. This section allows the CCP to approve mergers if they are deemed not to substantially lessen competition, even with conditions or legally binding agreements.
Sources close to the matter suggest that the CCP’s current proposition hinges on a substantial investment of approximately USD 1 billion from e& (formerly Etisalat), the UAE-based telecommunications giant holding a majority stake in PTCL. The CCP has reportedly sought a detailed breakdown of the timeline and specific areas where this significant capital injection will be directed.
This potential approval marks a significant step forward for the merger, which has reportedly been in limbo for nearly a year. Sources within the Ministry of Information Technology (IT) indicate that the delay stemmed from PTCL’s alleged failure to provide necessary documentation in response to CCP inquiries.
Adding another layer to the narrative is an outstanding payment of USD 800 million. A senior official highlighted that a previous settlement of USD 640 million, agreed upon with the former government, remains unpaid. The emergence of the USD 1 billion investment proposal is said to be a direct result of PTCL’s management seeking the SIFC’s assistance to break the deadlock.
The SIFC’s role in facilitating this potential agreement underscores the government’s focus on attracting foreign investment and streamlining significant economic transactions. By stepping in, the council appears to have played a crucial role in bridging the gap between the regulatory requirements and PTCL’s proposals.
Now, all eyes are on the CCP as it deliberates on the new settlement proposal and the promised USD 1 billion investment. If approved, this merger would create a telecommunications behemoth in Pakistan, potentially reshaping market dynamics, service offerings, and future investments in the sector. The conditions and legally binding agreements that the CCP might impose will be critical in understanding the full impact of this landmark decision.
This development signifies a potentially transformative period for Pakistan’s telecom industry, and stakeholders will be keenly watching for the CCP’s final verdict and the subsequent implications for competition and consumer benefits.
