Ansar M Bhatti

ISLAMABAD: In a development that could significantly reshape Pakistan’s telecommunications landscape, UAE-based telecom giant Etisalat is reportedly considering an exit from Pakistan, potentially relinquishing control of Pakistan Telecommunication Company Limited (PTCL). While no formal announcement has been made, sources suggest that a combination of geopolitical tensions, unresolved financial disputes, and longstanding operational challenges has pushed relations to a breaking point.

At the heart of the issue lies a complex mix of regional politics and bilateral strain. The ongoing Iran-related conflict has had ripple effects across the region, placing Pakistan in a delicate diplomatic position. The UAE, which has taken a firm stance aligned with Western and regional allies, has reportedly grown uneasy with Pakistan’s posture. This divergence has contributed to a noticeable cooling of ties between Islamabad and Abu Dhabi.

Tensions escalated further when the UAE recently asked Pakistan to return over $3 billion in deposits held with the State Bank. Pakistan complied and returned the funds, but the move appears to have deepened mistrust rather than easing it. In a reciprocal development, Pakistani authorities have now pressed Etisalat to clear approximately $800 million that has remained unpaid since the privatization of PTCL in 2005.

Etisalat, however, has consistently maintained that the payment was withheld due to the Pakistani government’s failure to transfer certain properties and assets as per the original privatization agreement. Nearly two decades later, the dispute remains unresolved, symbolizing a broader pattern of friction that has defined the relationship.

When Etisalat took over PTCL in 2005, there were high expectations that the UAE firm would modernize and transform Pakistan’s state-run telecom giant into a competitive, efficient enterprise. The early days of the takeover did offer some promise, particularly under the leadership of Mohamed Bamakhrama, the first UAE national appointed as president of PTCL.

Bamakhrama earned a reputation as an upright and principled leader who sought to bring discipline and transparency to the organization. He made efforts to root out corruption, reduce political interference, and establish a merit-based culture. Among his bold steps were withdrawing official vehicles from influential figures, including the then IT and telecom minister, and removing politically appointed officials who were seen as underperforming.

However, his reformist agenda soon ran into resistance. Powerful interests, uncomfortable with the loss of privileges, reportedly mobilized against him. Eventually, Bamakhrama was removed from his position, marking a turning point that many insiders believe altered PTCL’s trajectory.

He was succeeded by Walid Irshaid, whose tenure is often described by critics as a period of decline. Known for a more lavish and accommodating management style, Irshaid allegedly fostered a culture of favoritism and entitlement. During this era, what insiders dubbed the “email and female” culture became prevalent, symbolizing a workplace environment driven more by personal connections than professional merit.

The consequences were significant. Experienced and hardworking employees began leaving the organization, disillusioned by the shifting priorities. Operational efficiency declined, and PTCL gradually started losing its competitive edge. Financial performance weakened, and the company’s reputation suffered.

Today, PTCL continues to struggle in an increasingly competitive telecom market. Customers frequently complain about poor after-sales service, slow complaint resolution, and outdated infrastructure. Many have shifted to private operators offering better reliability and customer support, leaving PTCL lagging behind.

Ironically, there is a growing sentiment among some industry observers that PTCL performed better when it was under government control. While it may not have been perfect, it was seen as more stable and aligned with national priorities. The privatization, once hailed as a milestone, is now viewed by some as a missed opportunity.

Against this backdrop, the possibility of Etisalat’s exit is being viewed with cautious optimism in certain quarters. Some believe that a change in ownership or management could provide a much-needed reset for PTCL. Others, however, warn that any transition must be carefully managed to avoid further disruption.

For now, uncertainty looms large. The combination of geopolitical tensions, unresolved financial disputes, and a troubled operational history has brought the Etisalat-PTCL relationship to a critical juncture. Whether this results in a complete exit or a renegotiation of terms remains to be seen.

What is clear, however, is that the outcome will have far-reaching implications—not just for PTCL, but for Pakistan’s broader telecom sector and its investment climate.