The Pakistan Telecommunication Company Limited (PTCL) has received regulatory approval to proceed with the merger of its subsidiaries, marking a major development in Pakistan’s telecom sector.
According to a filing submitted to the Pakistan Stock Exchange, the Pakistan Telecommunication Authority has approved the proposed amalgamation of Pak Telecom Mobile Limited (Ufone) and Telenor Pakistan. The approval, granted on March 19, 2026, is subject to PTCL’s unconditional acceptance of the regulator’s conditions within 15 days.
The merger will be executed through a formal scheme of arrangement under applicable laws. A senior PTCL official confirmed that no further board approvals are required, as all key permissions for the acquisition have already been secured. The next step is to file the case in the Islamabad High Court to complete the legal formalities.
The amalgamation process is expected to take around four weeks. During this period, authorities will verify that there are no unresolved legal or financial disputes involving banks, tax authorities, consumers, or other telecom operators.
The process will also involve coordination with:
- State Bank of Pakistan
- Federal Board of Revenue
- Legal teams of both companies
The approval allows Ufone to begin integration with Telenor’s network infrastructure. This includes:
- Combining spectrum resources
- Consolidating telecom towers
- Reducing operational costs
The merged entity currently operates around 26,000 towers, many of which overlap and can be optimized.
However, regulators have placed conditions:
- Shared towers with operators like Jazz and Zong cannot be shut down without approval
- Franchise partners must receive at least six months’ notice before contract termination
- Existing Telenor SIMs will continue working on the Ufone network
Pakistan has approximately 202 million mobile subscribers:
- Jazz: 74.19 million
- Zong: 53.90 million
- Ufone + Telenor (combined): ~72.45 million
Analysts expect a possible 10% decline in the merged user base, as some users with dual SIMs may switch to competitors.
PTCL signed the agreement to acquire 100% of Telenor Pakistan in December 2023 in a deal worth around $400 million, with the transaction completed in December 2025 after multiple regulatory approvals.
This merger is expected to reshape competition in Pakistan’s telecom industry by creating a stronger third player capable of competing more aggressively with market leaders.
