Business

PTCL seeks to acquire Telenor Pakistan

Published

2 years ago

Farwa

PTCL is interested in buying Telenor with management control.
Etisalat to give guarantees for commercial loans.
PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor — if the deal is done

ISLAMABAD: The Pakistan Telecommunication Company Limited (PTCL) is ready to unleash its non-binding offer to acquire Telenor Pakistan, which is a cellular and digital services provider, The News reported Tuesday.

The telecommunication company is eyeing to buy Telenor at a possible price range of $800 million to $1.2 billion.

The PTCL’s board of directors, which gave a nod to acquiring majority shares of Telenor, is interested in buying the cellular company with management control.

Etisalat, the PTCL’s parent company, will give guarantees to raise commercial loans for making this deal done.

Payment in dollars

Telenor’s management has asked for making payment in US dollars so arrangements will have to be finalised before moving ahead toward a binding offer to accomplish the deal.

Top official sources confirmed to The News on Monday that the PTCL’s interest had been conveyed to Prime Minister Shehbaz Sharif that they were interested in acquiring the shares of Telenor Pakistan.

If both parties agree to the non-binding offer, then the PTCL will give its offer to accomplish this transaction, said the sources.

There are some issues that require settlement, as Etisalat has made a request to the government that they will be ready to pay the amount of the deal in dollars outside Pakistan keeping in view the lingering dollar liquidity crunch being experienced in the country.

Outstanding issues

There are some other outstanding issues as well, especially Etisalat has to pay an outstanding amount of $800 million on account of PTCL privatisation which could not solve since 2005-6.

There are outstanding issues of transferring land in the name of Etisalat in different parts of the country. Thirdly the PTCL’s employees’ issues also remain unresolved so all outstanding issues would have to be settled to strike this deal.

If the deal is done, then the PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor Pakistan.

Ufone’s balance sheet does not allow it to acquire another major stakeholder in the market so Etisalat is ready to play its role in finalising this expected deal.

If the binding offer is given by the PTCL, then the Economic Coordination Committee of the cabinet and federal cabinet will have to grant approval because the Government of Pakistan also possesses shares in PTCL.

Dar chairs meeting on telecom sector

According to an official announcement made by the Ministry of Finance Monday night, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired a meeting on the telecom sector.

Federal Minister for IT and Telecommunication Syed Amin Ul Haque, Federal Minister for Law and Justice Senator Azam Nazeer Tarar, Secretary Finance, Secretary Privatisation and Secretary IT & Telecom participated in the meeting.

The meeting discussed the telecom sector in general and PTCL in particular.

Dar emphasised that the nominee directors of the government on the PTCL board must make active contributions for the best possible performance of the telecommunications company.

Business

Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

Published

11 hours ago

Farwa

There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

Business

SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

Published

11 hours ago

Farwa

Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

Business

July 2024 export data from Pakistan shows a significant rise.

Published

13 hours ago

Farwa

The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.