Ishaq Dar Meets Etisalat Leadership as $800 Million Privatization Delay Clouds PTCL-Telenor Deal

Amid mounting delays in Pakistan Telecommunication Company Limited’s (PTCL) proposed acquisition of Telenor Pakistan and a longstanding $800 million dispute linked to PTCL’s privatization, Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Monday held a high-stakes meeting with the Etisalat Group leadership to navigate the telecom stalemate and explore new digital investment avenues.

The meeting, held in Islamabad, brought together key stakeholders from both governments and private telecom sectors. The Etisalat delegation was led by Group CEO Hatem Dowidar, while Pakistan’s side included the Minister for IT and Telecom, Special Assistant to the Prime Minister (SAPM) Tariq Bajwa, National Coordinator of the Special Investment Facilitation Council (SIFC), and top officials from the Ministries of IT, Commerce, Privatization, and Foreign Affairs.

A Delayed Acquisition and an Unpaid Bill

The context of the meeting was defined by two critical issues: the years-long delay in the resolution of Etisalat’s $800 million outstanding payment related to its 2006 acquisition of a 26% stake in PTCL and the uncertain status of PTCL’s pending acquisition of Telenor Pakistan.

Despite being one of the most significant privatization deals in Pakistan’s history, the PTCL sale to Etisalat has remained partially unsettled, largely due to disputes over the transfer of certain properties listed in the original agreement. Etisalat has held back approximately $800 million in final payments, arguing that Pakistan has not fulfilled its contractual obligations.

Simultaneously, PTCL, majority-owned by Etisalat, is facing procedural hurdles and regulatory uncertainty in its bid to acquire Telenor Pakistan, a deal that could reshape Pakistan’s telecom landscape by consolidating two major players.

Dar: Pakistan Open for Digital Investment

During the meeting, Deputy Prime Minister Ishaq Dar underscored the government’s focus on expanding Pakistan’s digital infrastructure and fostering a stable environment for international investors.

Pakistan’s digital economy is growing rapidly and we are committed to creating a business-friendly climate that welcomes foreign partners like Etisalat to scale their contributions in ICT and telecom.

-Ishaq Dar

He urged the Etisalat Group to explore deeper investments beyond PTCL, especially in emerging sectors like 5G deployment, digital banking, and cloud infrastructure.

Sources familiar with the discussion said Dar also emphasized the need to resolve pending financial issues amicably and swiftly to pave the way for further collaboration.

PTCL-Telenor Deal: Etisalat Reaffirms Long-Term Commitment

In response, Group CEO Hatem Dowidar reaffirmed Etisalat Group’s long-standing relationship with Pakistan and its confidence in the country’s economic and digital future.

We appreciate the Government of Pakistan’s consistent support. Etisalat is committed to Pakistan’s long-term growth and is keen to contribute further to its digital transformation and connectivity goals.

-Hatem Dowidar

He also expressed interest in participating in future initiatives under Pakistan’s Special Investment Facilitation Council (SIFC), a body created to streamline foreign direct investment across priority sectors.

What’s at Stake?

The $800 million Etisalat dispute is more than just a financial logjam; it continues to cast a shadow over Pakistan’s broader privatization ambitions and undermines investor confidence. Until resolved, it presents a legal and diplomatic hurdle in expanding UAE-Pakistan business relations.

Meanwhile, the stalled Telenor acquisition remains a missed opportunity. With Pakistan’s mobile penetration plateauing and telecom profits squeezed by currency depreciation and regulatory fees, consolidation could be a lifeline for struggling operators.

Should the acquisition be finalized, it could streamline operations, reduce overheads, and provide the financial muscle for accelerated 5G deployment and rural connectivity expansion. However, pending regulatory approvals and financial guarantees are causing delays.

The government’s strategy, signaled by this high-profile meeting, appears to be dual-pronged: settle legacy disputes with grace while aggressively courting new investment.

Involving multiple ministries and the SIFC in the Etisalat dialogue reflects a more coordinated, institutionalized approach, something foreign investors have long demanded.

Sources also suggest that follow-up meetings are planned in Abu Dhabi and Dubai, where Pakistani authorities may present updated property documentation to resolve the privatization bottleneck.

A Defining Moment for Telecom Policy

The Dar-Dowidar meeting could mark a turning point in one of Pakistan’s most prolonged privatization sagas. More importantly, it signals the government’s intent to re-engage international players with a revamped digital vision and a problem-solving mindset.

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