IFC Leads $400 Million Financing for PTCL’s Acquisition of Telenor Pakistan

The International Finance Corporation (IFC) and a consortium of investors have approved a $400 million financing package to support Pakistan Telecommunication Company (PTCL) in acquiring Telenor Pakistan Private Limited and Orion Towers Private Limited. This strategic initiative aims to enhance digital infrastructure, improve network quality, expand service coverage, and stimulate competition and innovation in Pakistan’s telecom sector.

Of the total package, $224.5 million will be directly managed by IFC, while British International Investment (BII) and the Silk Road Fund (SRF) will contribute an additional $175.5 million. PTCL plans to merge its mobile subsidiary, Pak Telecom Mobile Limited (PTML or Ufone 4G), with Telenor Pakistan, which is expected to unlock operational and financial synergies, boost digital connectivity, and accelerate the development of high-quality, affordable digital products and services.

This acquisition will drive increased investment in digital infrastructure, particularly in underserved regions, allowing PTCL to expand network coverage and enhance the customer experience, especially in remote areas.

Hatem Bamatraf, President and Group CEO of PTCL & PTML, expressed gratitude for the support from the IFC-led consortium, stating, “We appreciate the pivotal role played by the IFC-led consortium in funding this transformational agreement, marking a defining moment for Pakistan’s telecom sector.” He highlighted that this financing package is the largest ever secured in the industry, which strengthens PTCL Group and supports the long-term financial stability and sustainability of the telecom sector by enabling greater economies of scale.

While Pakistan’s telecommunications industry has made progress, challenges remain, particularly in fixed broadband penetration and mobile subscriber ownership, both of which fall below regional averages. Increased investment in telecommunications infrastructure is crucial for improving connectivity, addressing regulatory challenges, and providing affordable services to a broader population.

Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan, underscored the growth potential within Pakistan’s telecommunications sector, stating, “This investment reflects IFC’s commitment to enhancing inclusive, high-quality digital connectivity and infrastructure in the country.”

IFC’s support aligns with its broader goal of bridging Pakistan’s digital divide. The investment aims to promote financial inclusion, improve access to education and healthcare services, and enhance the overall productive capacity of the economy. With the backing of prominent investors like BII and SRF, Pakistan’s telecom sector is set to benefit from increased economies of scale, significantly contributing to the country’s economic growth.

Through this acquisition, PTCL aims to strengthen its market leadership in telecommunications, ensuring that the Pakistani population gains access to improved, high-quality services. This strategic move will foster the continued development of the country’s telecom infrastructure, spurring growth in other economic sectors and creating broader opportunities for social and economic advancement in the years to come.