The government has reportedly halted plans to rebrand the merged Ufone-Telenor business as “e&” after legal and governance concerns emerged.
The dispute centres on removing the word “Pakistan” from the operator’s identity. It also raises questions about whether the Ufone board had authority to approve the change.
Sources told Business Recorder that the board approved “e&” as the merged company’s proposed identity. Government nominees include a sitting PML-N senator and two federal secretaries.
However, the Pakistan Telecommunication Company Limited board had earlier deferred the same proposal. The Ufone board’s approval reportedly triggered concern at the highest government levels and led to immediate intervention.
The government may now seek an opinion from the Law Division. Officials want clarity on whether a subsidiary’s board can independently approve a merged entity’s branding.
They also want to determine whether all legal, regulatory and corporate requirements had been completed. Until then, the branding exercise may remain suspended.
Governance and Board Fees Under Scrutiny
The controversy has revived questions about government-nominated directors on state-owned enterprise boards. Some reportedly receive up to USD5,000 for attending one meeting.
Critics say directors overseeing strategic public assets must protect national interest and follow corporate governance rules. They also expect proper legal due diligence.
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Senator Anusha Rahman Khan serves as a non-executive director on the Ufone board. She also chairs the Senate Standing Committee on Commerce.
Her role, along with senior federal bureaucrats, has intensified scrutiny of the approval process. Business Recorder said it sought her comments repeatedly but received no response.
The newspaper also contacted Information Technology Minister Shaza Fatima. She did not respond before publication.
Merger Complete but Branding Remains Conditional
Telenor Pakistan formally merged into Pak Telecom Mobile Limited, the legal entity behind Ufone, on July 1 after Islamabad High Court approval. It then ceased to exist separately.
The combined company remains a wholly owned PTCL subsidiary and operates as PTML. PTA data showed it held a 35.91 percent mobile market share by the end of May 2026.
PTCL completed its Rs108 billion acquisition of Telenor Pakistan and Orion Towers in December 2025. The Competition Commission of Pakistan approved the transaction with conditions.
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Those conditions require PTCL and the merged company to maintain separate boards and independent management. They also seek to protect competition and deliver merger benefits to consumers.
PTCL President and Group CEO Hatem Bamatraf called the merger “a defining moment for our company and for Pakistan’s telecom industry.”
The PTA approved the proposed “e&” brand in a letter dated June 16, 2026. However, it required PTML to notify the regulator after amalgamation and before any commercial launch or marketing campaign.
A further PTA letter dated July 2 repeated that requirement. The regulator also directed PTML to follow all approval conditions.
The dispute remains unresolved. The final decision may depend on the Law Division’s interpretation of PTML’s authority and the government’s assessment of national and corporate interests.
