Islamabad (National Times) Facilitated by the Special Investment Facilitation Council (SIFC), the Competition Commission of Pakistan (CCP) is reportedly preparing to grant its approval for the merger between Telenor Pakistan Limited and Pakistan Telecommunication Company Limited (PTCL).
In a letter addressed to the CCP, PTCL’s legal counsel, Rahat Kauser Hasan, cited Section 11(11) of the Competition Act 2010, presenting a new settlement proposal to the regulatory body.
Sources indicate that the CCP’s proposition involves an approximate USD 1 billion investment from the UAE-based telecommunications firm e& (formerly known as Etisalat), which holds a majority stake in PTCL.
According to sources, the CCP has requested a detailed timeline and specific areas where this investment will be directed.
Section 11(11) of the Act stipulates that the commission shall not prohibit a proposed merger if it concludes that the transaction will not substantially lessen competition within the relevant market. The law also empowers the CCP to approve such transactions with conditions or subject to legally binding agreements specified by the commission.
Sources within the Ministry of Information Technology (IT) revealed that the PTCL merger application had been pending for nearly a year due to the company’s failure to provide necessary documentation in response to several queries.
A senior official highlighted an unresolved issue concerning an outstanding payment of USD 800 million. A previous settlement of USD 640 million had been agreed upon between the former government and PTCL management, but the agreed amount remains unpaid. The new USD 1 billion investment option emerged following the SIFC’s intervention, after PTCL’s management approached the council for assistance.