Business

PTCL seeks to acquire Telenor Pakistan

Published

1 year ago

Farwa

PTCL is interested in buying Telenor with management control.
Etisalat to give guarantees for commercial loans.
PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor — if the deal is done

ISLAMABAD: The Pakistan Telecommunication Company Limited (PTCL) is ready to unleash its non-binding offer to acquire Telenor Pakistan, which is a cellular and digital services provider, The News reported Tuesday.

The telecommunication company is eyeing to buy Telenor at a possible price range of $800 million to $1.2 billion.

The PTCL’s board of directors, which gave a nod to acquiring majority shares of Telenor, is interested in buying the cellular company with management control.

Etisalat, the PTCL’s parent company, will give guarantees to raise commercial loans for making this deal done.

Payment in dollars

Telenor’s management has asked for making payment in US dollars so arrangements will have to be finalised before moving ahead toward a binding offer to accomplish the deal.

Top official sources confirmed to The News on Monday that the PTCL’s interest had been conveyed to Prime Minister Shehbaz Sharif that they were interested in acquiring the shares of Telenor Pakistan.

If both parties agree to the non-binding offer, then the PTCL will give its offer to accomplish this transaction, said the sources.

There are some issues that require settlement, as Etisalat has made a request to the government that they will be ready to pay the amount of the deal in dollars outside Pakistan keeping in view the lingering dollar liquidity crunch being experienced in the country.

Outstanding issues

There are some other outstanding issues as well, especially Etisalat has to pay an outstanding amount of $800 million on account of PTCL privatisation which could not solve since 2005-6.

There are outstanding issues of transferring land in the name of Etisalat in different parts of the country. Thirdly the PTCL’s employees’ issues also remain unresolved so all outstanding issues would have to be settled to strike this deal.

If the deal is done, then the PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor Pakistan.

Ufone’s balance sheet does not allow it to acquire another major stakeholder in the market so Etisalat is ready to play its role in finalising this expected deal.

If the binding offer is given by the PTCL, then the Economic Coordination Committee of the cabinet and federal cabinet will have to grant approval because the Government of Pakistan also possesses shares in PTCL.

Dar chairs meeting on telecom sector

According to an official announcement made by the Ministry of Finance Monday night, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired a meeting on the telecom sector.

Federal Minister for IT and Telecommunication Syed Amin Ul Haque, Federal Minister for Law and Justice Senator Azam Nazeer Tarar, Secretary Finance, Secretary Privatisation and Secretary IT & Telecom participated in the meeting.

The meeting discussed the telecom sector in general and PTCL in particular.

Dar emphasised that the nominee directors of the government on the PTCL board must make active contributions for the best possible performance of the telecommunications company.

Business

FBR Reforms: PM Leading Reforms Process with Law Minister as Top Priority

Published

4 hours ago

Farwa

According to Federal Law Minister Azam Nazir Tarar, Prime Minister Shehbaz is leading the entire reform process, and the Federal Government has made the reforms at the Federal Board of Revenue its top priority.

According to the law minister, who was speaking at a press conference in Islamabad, there are presently one billion rupees worth of tax cases pending in court. The parliament has for the first time passed legislation on tax tribunals in an effort to streamline and accelerate the legal process.

He stated that, strictly according to merit, there have already been a few postings and transfers in the FBR and that more are anticipated in the next few days.

Federal Information Minister Atta Tarar, who accompanied the Law Minister, stated that Prime Minister Shehbaz Sharif is spearheading an effective foreign policy through productive meetings with world leaders.

He declared the premier’s trip to Saudi Arabia, where Shehbaz Sharif met with government representatives and corporate executives who indicated interest in investing in Pakistan, a success.

Atta Tarar also declared that a commercial team from Saudi Arabia would be visiting soon.

Business

Pakistan will host an IMF team in May to discuss a new loan.

Published

4 hours ago

Farwa

According to sources, negotiations on a fresh loan program have been set between Pakistan and the foreign lender. There will be two stages to the meetings: technical discussions and policy-level conversations.

Prior to the upcoming negotiations, Pakistan must overcome formidable economic obstacles, including the collapse of an IMF-proposed tax amnesty program.

Although it hasn’t worked, the federal government had promised to include 3.1 million merchants in the scheme’s tax net. The recent turnover of senior officials has placed the Federal Board of Revenue (FBR) in an atypical position.

The negotiation process with the IMF will be difficult for the new and inexperienced FBR team. The significant drop in FBR’s tax collections would likely worry the IMF.

A day prior, Pakistan obtained the eagerly awaited $1.1 billion last installment from the IMF as a component of the $3 billion standby agreement.

Special Drawing Rights (SDR) 828 million, or $1.1 billion in worth, were given to the SBP “after the successful completion of the second review by the Executive Board of IMF under Stand By Arrangement (SBA),” according to the SBP.

Finance Minister Muhammad Aurangzeb stated Islamabad might obtain a staff-level agreement on the new program by early July. Pakistan is seeking a new, longer-term, and larger IMF loan.

Although Aurangzeb has neglected to specify the specific program in question, Islamabad has stated that it is seeking a loan for a minimum of three years in order to support macroeconomic stability and carry out long-overdue and difficult structural reforms. Should it be approved, Pakistan would receive its 24th IMF bailout.

Business

In FY2024, SRB tax revenue soars to Rs 185.2 billion.

Published

4 hours ago

Farwa

In a statement released here, the SRB’s chairman, Wasif Memon, stated that he briefed Sindh Chief Minister Syed Murad Ali Shah about the organization’s revenue collections during their meeting.

In comparison, the tax collection during the same period of the previous financial year 2022–2023 stood at Rs143.3 billion. This achievement represents a 29 percent year-over-year growth, according to the Sindh Revenue Board (SRB), which recorded record revenue of Rs185.2 billion during the first nine months of the fiscal year 2023–2024.

The CM stated at the time that the SRB has shown tenacity and efficiency in revenue collection in spite of facing a number of difficulties, including the general economic downturn.

According to the statement, SRB’s monthly tax collection for April 2024 was Rs18.8 billion, a 23 percent increase from the Rs15.2 billion collected in the same month the previous year.