While reaffirming the government’s ownership of PTCL, Minister for IT and Telecom Shaza Fatima Khawaja acknowledged that its subsidiary, Ufone, has not been sharing its financial records with the government, despite facing continuous losses.
Speaking at the “5G and Beyond: Shaping the Future of Connectivity” conference, she clarified that Ufone operates under Etisalat’s management, and its financial struggles do not fall under the direct responsibility of the IT ministry. She added that while PTCL remains under government ownership, Ufone, as a subsidiary, has not been transparent in sharing its balance sheet with government authorities.
When asked about Ufone’s financial downturn in contrast to the profitability of competitors like Jazz and Zong, the minister deflected responsibility to PTA, stating that it is up to the regulator to address concerns regarding the telecom sector’s financial health. She further declined to respond to inquiries about the absence of IT ministry representation on Ufone’s board, referring the question to the IT secretary, who mistakenly confused the Ufone board with PTCL’s board. The conference, organized by the PTA in collaboration with Malaysia’s telecom regulator and Nokia Pakistan, also addressed the upcoming 5G auction. Minister Shaza Fatima Khawaja presented a cautious stance, arguing that auctioning the 5G spectrum could increase operational costs for telecom companies, which might be passed on to consumers, thereby slowing 5G adoption.
She emphasized that Pakistan must learn from global case studies to avoid missteps made by other countries in rolling out 5G. The government’s strategy, she suggested, should focus on creating an ecosystem where 5G deployment is cost-effective and sustainable, rather than imposing excessive spectrum fees that could deter telecom operators from investing in infrastructure development. As Pakistan moves toward 5G implementation, the discussion surrounding telecom sector finances, government oversight, and cost-efficient digital transformation remains at the forefront. The government’s ability to address these challenges will be crucial in ensuring the smooth expansion of high-speed connectivity across the country.
