UAE-based telecom group e&, formerly known as Etisalat, is playing a central role in Pakistan’s transition to 5G connectivity through its subsidiary PTCL and its mobile arm Ufone. The company acquired a 26% stake in Pakistan Telecommunications Company Limited in 2005 as part of a government privatization initiative and has since expanded its footprint across the country’s fixed and mobile telecom sectors.
The latest milestone in that expansion came in March 2026, when Pak Telecom Mobile Limited, operating as Ufone, secured 5G spectrum at an auction held by the Pakistan Telecommunication Authority in Islamabad. Jazz and Zong also received 5G licenses at the same auction, with both operators immediately launching commercial services in select cities. Ufone received its license but announced its commercial launch would follow in May 2026.
PTCL Acquires Telenor Pakistan in Major Consolidation
A key development underpinning e&’s expanding role in Pakistan is the PTCL Group’s acquisition of Telenor Pakistan. PTCL completed the 100% acquisition of Telenor Pakistan for an enterprise value of PKR 108 billion. The Pakistan Telecommunication Authority has formally approved the amalgamation of Ufone and Telenor Pakistan, with the merger process now in its final phase pending legal formalities.
Once the merger is finalized, the combined entity, referred to as MergeCo, will hold a total spectrum portfolio of 292.4 MHz spanning low, mid, and high frequency bands. According to PTCL, that is 8 MHz more than its nearest competitor. The combined entity will serve more than 70 million customers nationwide. Rollout of 5G services is planned to begin in major urban centers, including Islamabad, Lahore, Karachi, and Rawalpindi, before expanding to other regions.
Hatem Bamatraf, President and Group CEO of PTCL and Ufone, said at a press briefing in April 2026 that after the full merger of Ufone and Telenor, customers would receive better quality services. He also confirmed the May 2026 commercial 5G launch timeline.
PTCL Posts First Profit in Four Years
PTCL Group reported a net profit of Rs3.1 billion for the January to March 2026 quarter, reversing a net loss of Rs4 billion recorded in the same period the previous year. Group revenues rose 58% year-on-year, while consolidated operating profit increased 564% following the inclusion of Telenor Pakistan’s financials. PTCL’s revenue increased 6.5% during the quarter, with operating profit reaching Rs4.6 billion.
Bamatraf attributed the improved performance to the consolidation of Telenor Pakistan into the group accounts and said the company was entering a new stage of sustainable growth. PTCL Group CFO Nadeem Khan noted at the same briefing that the effects of regional conflict may begin to affect operations in the second quarter, primarily through higher interest rates and elevated fuel prices.
On the spectrum side, Ufone holds the largest share of 3500 MHz spectrum, the globally recognized frequency band for 5G. It also holds 120 MHz of contiguous spectrum designed to support wider 5G channels and higher peak speeds.
Pakistan Invites Further e& Investment
Pakistan’s government has been actively courting deeper investment from e& beyond its existing PTCL stake. Pakistan’s Deputy Prime Minister Mohammad Ishaq Dar met with Khalifa Al Shamsi, CEO of e& life and e& international, in Dubai in February 2025 and formally invited the group to increase its investments in the country’s telecom sector. Khaled Hegazy, Chief Operations Officer of e& International, also participated in the meeting. Discussions focused on Pakistan’s investment policies and opportunities for expansion in the country’s telecom infrastructure.
At the group level, e& reported international subscriber growth of 33.3% year-on-year, reaching 228.5 million, driven largely by the consolidation of Telenor Pakistan. Pakistan’s contribution to group revenues also increased, supported by higher mobile data and fixed broadband revenues, with full-year revenues amounting to AED 3.3 billion at a 14.4% increase in constant currency terms.
