United Bank Limited (UBL) has taken a significant step in strengthening Pakistan’s telecom sector by extending a Rs. 25 billion bilateral financing facility to Telenor Pakistan. This marks the telecom operator’s first locally secured borrowing since entering the Pakistani market, highlighting both the company’s growing confidence in domestic financial markets and the bank’s role in supporting strategic industrial sectors.
The financing agreement was formalized at Telenor Pakistan’s Islamabad headquarters, with documents signed by the company’s Chief Financial Officer, Andreas Högberg, and UBL’s Group Executive for Corporate & Investment Banking, Nadia Tabassum. The arrangement underscores a collaborative approach to addressing financial needs that are crucial for sustaining operations and investing in long-term growth in a competitive telecom environment.
This facility is structured to support Telenor Pakistan’s operational and investment requirements amid ongoing industry pressures. Telecommunications operators in the country are navigating challenges associated with spectrum costs, network infrastructure expansion, and macroeconomic volatility, all of which require robust financial planning and access to flexible funding sources. The UBL facility is designed to provide precisely that flexibility, ensuring Telenor Pakistan can continue to invest in technological upgrades, expand its network, and meet service expectations across its customer base.
Högberg expressed his appreciation for UBL’s efficiency in executing the financing, describing the facility as a “significant milestone” for Telenor Pakistan. He emphasized that the partnership strengthens the company’s financial resilience at a time when the telecom sector is critical for sustaining economic connectivity and growth.
Nadia Tabassum highlighted the strategic importance of telecommunications to Pakistan’s broader development. She stated, “Telecom infrastructure is central to economic growth and social connectivity. UBL remains committed to enabling sectoral development and fostering partnerships that contribute to Pakistan’s broader progress.” Her remarks underline the bank’s vision of supporting industries that are pivotal to the national economy while also facilitating sustainable business growth for its corporate clients.
The agreement also reflects growing confidence in Pakistan’s telecom sector from financial institutions. By providing a sizable financing facility, UBL is signaling that domestic banks are willing to back companies that contribute significantly to technological advancement, digital connectivity, and employment generation. Such partnerships not only strengthen corporate operations but also reinforce the country’s broader economic and social infrastructure.
Industry observers note that this facility could encourage other financial institutions to explore similar arrangements with telecom and technology companies, creating a stronger ecosystem for investment in Pakistan’s digital and communication infrastructure. For Telenor Pakistan, access to local funding represents both a financial milestone and an operational advantage, allowing it to better navigate a challenging macroeconomic environment while maintaining strategic growth initiatives.
Overall, the collaboration between UBL and Telenor Pakistan underscores the critical intersection of finance, technology, and economic development in the country. By facilitating such partnerships, banks like UBL are playing a central role in fostering sustainable industrial growth while enhancing the resilience and capacity of key sectors like telecommunications.
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