ISLAMABAD – A major transformation in Pakistan’s telecom sector suddenly hit a roadblock as the planned shift of the merged Ufone-Telenor entity to global brand ‘e&’ has been halted after the government stepped in.
The government’s intervention came after concerns emerged over the proposed removal of the word “Pakistan” from the company’s corporate identity and whether Ufone board had the legal authority to approve such major decision before completion of all merger formalities.
Ufone board approved adoption of ‘e&’ brand for the merged company, despite PTCL’s board having already delayed its decision on the same proposal. The board includes government-nominated directors, including a sitting PML-N senator and two federal secretaries, making the decision even more sensitive due to the state’s direct involvement in the company’s affairs.
After the approval, government officials moved to review the legality of the decision and are considering seeking an opinion from the Law Ministry on whether a subsidiary’s board can independently approve branding changes for a merged entity before the completion of legal, regulatory, and corporate requirements.
Until a final legal position emerges, the rebranding process has effectively been put on hold. The proposed transition from the long-established Ufone brand to the international identity of ‘e&’ has triggered debate within official circles, with concerns that a strategically important telecom company could lose its national identity.
Officials questioned whether removing “Pakistan” from the corporate identity of a company partly controlled by the government aligns with national interests, particularly when the telecom sector is considered a critical infrastructure area.
The controversy intensified due to reported financial obligations linked to ‘e&’, with officials highlighting around $800 million in outstanding liabilities connected to Pakistan, The existence of these liabilities has increased scrutiny around the rebranding plan, as authorities examine whether such a major corporate transformation should proceed before unresolved financial matters are addressed.
The federal government remains the largest stakeholder in the merged Ufone-Telenor entity, holding approximately 67% ownership, giving it significant influence over major strategic decisions. The dispute has now shifted from a simple branding exercise into a broader debate over the governance of state-owned enterprises and the responsibilities of government-appointed directors.
The episode also reignited questions about decision-making standards in state-owned companies, particularly regarding the accountability of directors nominated by the government. Board members responsible for overseeing national assets must ensure every decision follows legal procedures, corporate governance principles, and public interest considerations.
The issue gained further attention as reports suggest some government-appointed directors receive compensation of up to $5,000 per board meeting, increasing demands for greater transparency and accountability.
Pakistan Telecommunication Authority (PTA) had earlier approved the proposed ‘e&’ brand name through a letter issued on June 16, 2026. However, the regulator attached conditions, directing the company to notify PTA only after the legal completion of the merger and before launching any commercial campaign under the new brand.
PTA reiterated the same position in another communication issued on July 2, stressing that the company must complete all legal requirements before officially rolling out the new identity.
IFC approves financing for PTCL Group’s acquisition of Telenor Pakistan
About the Author
