Telenor’s Exit from Pakistan May Extend into 2026 Despite CCP Approval

Telenor Group has confirmed that its planned exit from Pakistan, part of a landmark deal to sell its local operations to Pakistan Telecommunications Company Limited (PTCL) has reached a critical milestone with the Competition Commission of Pakistan (CCP) granting approval. However, the company cautions that the final closing of the Telenor PTCL merger may slip into 2026, pending additional regulatory clearances.

In its third-quarter 2025 report, the Norwegian telecom group said that while Pakistan’s macroeconomic environment has shown “slight improvement”, it remains vulnerable to external shocks and political volatility, factors that could influence the pace of regulatory progress.

Telenor signed an agreement to sell 100 percent of its Pakistan telco operations to Pakistan Telecommunications Company Limited (PTCL) in December 2023. On 30 September 2025, the CCP approved the transaction. With this milestone reached, Telenor is seeking approval from the Pakistan Telecommunication Authority (PTA) to complete the transaction.

The group clarified that Telenor Pakistan is not yet presented as a discontinued operation, given the uncertainties surrounding final regulatory approvals and other customary terms and conditions attached to the sale.

We anticipate receiving the remaining approvals in the coming months. The first approval from authorities has been received in conjunction with the ongoing exit process in Pakistan. While we foresee a more expeditious process from this milestone on, the expected closing of the transaction may slip into 2026.

-Telenor Report

Strong Operating Performance Amid Transition

Despite the pending exit, Telenor Pakistan has continued to deliver strong financial performance, with 15.1 percent service revenue growth during the quarter, a sign of operational resilience in a challenging market.

According to the report, this growth was primarily driven by data revenues, offsetting a decline in voice services. Average Revenue Per User (ARPU) rose by 18 percent, reflecting continued monetisation efforts and rational pricing strategies, while the company’s subscriber base declined by 4 percent year-on-year.

Operating expenses (Opex) increased by 7.1 percent on an organic basis, largely due to contractual rises in network operation and maintenance costs, along with marketing and commission-related spending. However, adjusted EBITDA grew 17.1 percent organically, boosted by topline expansion and disciplined cost control.

The group also noted that Pakistan, along with Bangladesh’s Grameenphone, drove overall growth in Telenor’s Asia business area, contributing to a 4.4 percent organic increase in service revenues and 4.1 percent growth in adjusted EBITDA.

Regulatory and Market Context

Telenor’s exit from Pakistan is part of a broader strategic realignment aimed at consolidating its Asian portfolio and focusing on markets with higher growth potential. The deal with PTCL, majority-owned by Etisalat, was one of Pakistan’s most significant telecom transactions in recent years, expected to reshape the competitive landscape by bringing together PTCL, Ufone, and Telenor Pakistan under one umbrella.

However, the transaction’s progress has been slower than expected, largely due to Pakistan’s complex regulatory environment and recent macroeconomic headwinds, including inflationary pressures and a fluctuating currency. Industry analysts suggest that the combined entity could improve network efficiency and coverage, but only after regulatory clearances and integration challenges are addressed.

Telenor Pakistan Exit: What Comes Next

With the CCP approval secured, the next critical step is obtaining the PTA’s approval, which oversees spectrum licenses, network infrastructure, and ownership structures. Given the deal’s scale and implications for market competition, the PTA’s review process is expected to be extensive.

If completed, the acquisition would mark a significant consolidation in Pakistan’s telecom sector, reducing the number of major players and potentially leading to a more stable pricing environment. However, the delay to 2026 could also affect strategic planning for both companies, particularly in a market where consumer affordability and digital inclusion remain key challenges.

Outlook

For now, Telenor remains optimistic about its Pakistan operations, emphasizing strong revenue performance and operational discipline. Still, its statement underscores the fragile balance between progress and patience in a market navigating economic uncertainty and evolving regulatory dynamics.

The group’s next steps will depend heavily on how quickly the PTA and other authorities move to finalize the Telenor Pakistan exit deal. Until then, Telenor’s chapter in Pakistan, once seen as a cornerstone of its Asian footprint, remains open but nearing its final pages.