Islamabad, February 18, 2025 – In a recent statement, Minister for IT and Telecom, Shaza Khawaja, clarified that the government is not responsible for the continuous losses faced by Ufone, a subsidiary of Pakistan Telecommunication Company Ltd (PTCL). The minister’s comments came in response to growing concerns over the telecom company’s financial performance, which has been at odds with the profitability seen by other industry players like Zong and Jazz in 2024.
Speaking at the ‘5G and Beyond: Shaping the Future of Connectivity’ conference, Khawaja acknowledged that while the government holds the majority of shares in PTCL, it does not directly oversee the operations or financial health of Ufone. “Ufone is operationally under Etisalat,” she said. “Therefore, the government is not responsible for its constant loss-making.” She further explained that, although Ufone is a subsidiary of PTCL, the company’s financial details, including its loss-making balance sheet, are not shared with the government.
The statement raises questions about the transparency of Ufone’s operations under the management of Etisalat, the UAE-based telecom group. Despite PTCL’s ownership of Ufone, the company’s performance has largely been dictated by Etisalat, with the government having limited insight into its operational and financial strategies.
Khawaja was also asked about Ufone’s financial standing compared to its competitors, particularly Zong and Jazz, which saw a significant increase in profits over the same period. In response, she reiterated that the Ministry of IT is not involved in Ufone’s day-to-day operations and does not have access to the company’s financial reports. “The Pakistan Telecommunication Authority (PTA) should provide the answer to Ufone’s weak financial standing,” she added, distancing herself from further commentary on the matter. When questioned about the lack of IT ministry representation on the Ufone board, Khawaja referred the query to the secretary of IT, who mistakenly conflated Ufone’s board with that of PTCL.
The government’s hands-off approach to Ufone’s losses comes at a time when the telecom industry in Pakistan is undergoing significant changes. One area of focus has been the auctioning of the 5G spectrum, a topic that was also discussed during the conference. While other countries have already rolled out 5G technology, Pakistan remains cautious about its approach, citing concerns over high auction prices.
Khawaja voiced her opposition to the idea of auctioning the 5G spectrum, arguing that such an approach could increase business costs for telecom companies. These additional costs, she suggested, could be passed on to consumers, which may slow down the adoption of 5G technology and hinder the necessary infrastructure development in the country. She also pointed out that Pakistan could benefit from learning from the experiences of countries that have already launched 5G services, to avoid repeating costly mistakes.
The discussion surrounding Ufone’s financial struggles and the future of 5G technology highlights the challenges facing Pakistan’s telecom industry. With rising costs and intense competition, the sector’s future will likely depend on finding a balance between investment in new technologies and ensuring that telecom companies remain financially viable.
The conference, organized by the PTA in collaboration with Malaysia’s telecom regulator and Nokia Pakistan, provided a platform for key industry stakeholders to discuss the evolving landscape of connectivity. However, questions surrounding Ufone’s performance remain unresolved, and the government’s position on the matter continues to evolve.