SECP has issued a clear denial in response to recent reports claiming that it was responsible for delays in the much-anticipated Ufone-Telenor Pakistan merger. In an official statement released today, the SECP categorically stated that it has not received any transaction related to the merger for approval, and that accusations of procedural delays originating from its side are completely unfounded.
SECP, a key regulatory body in Pakistan’s financial and corporate sectors, went on to further clarify that its role is limited to granting permission for schemes of arrangement, particularly for minor enterprises or certain public sector entities under federal supervision. The commission emphasized that it does not have direct involvement in the approval of mergers or acquisitions of large telecommunications entities like Ufone and Telenor.
The SECP’s statement specifically rebutted claims that the regulatory authority had any role in impeding the merger process. The commission reiterated that it has not issued any outstanding petitions or approvals concerning this transaction. Furthermore, it dismissed assertions that competing mobile operators had obstructed the merger, citing no such interference from its side.
In reality, the regulatory holdup surrounding the merger is tied to a much broader and critical issue: Competition Commission of Pakistan (CCP. Sources from PTA confirmed that the final regulatory obstacle is the CCP’s decision on the merger. According to these sources, while the CCP has already cleared the transaction after several rounds of hearings, it has been carrying out its own review of the merger for the past six months, delaying the final approval.
The delay has caused significant frustration in the telecommunications industry, with insiders indicating that a decision was expected from the CCP by the end of December 2024. However, as of now, the merger is still pending approval. Industry experts have raised concerns that this prolonged waiting period could undermine Pakistan’s attractiveness as an investment destination, particularly in the telecom and information technology sectors.
Ufone-Telenor merger, initially announced in December 2023, is set to create Pakistan’s largest mobile operator, combining the customer bases of both companies, which collectively exceed 75 million subscribers. The deal is seen as a crucial step toward improving service delivery and increasing coverage across the country. As part of the merger agreement, Ufone is expected to install over 2,600 new mobile towers, which would significantly improve network coverage and potentially spark greater competition in the market, forcing other operators to enhance their services.
Despite the potential benefits of the merger, the CCP’s delay in granting approval has raised several concerns. A senior official from the PTA confirmed that the authority is ready to issue its approval for the merger once the CCP completes its review. “If the CCP makes a decision today, PTA can issue its approval within a month,” the official stated, underscoring the PTA’s readiness to act swiftly once the CCP finalizes its stance.
However, the ongoing delay in the merger process has far-reaching implications beyond market competition. One of the most pressing concerns is the government’s timeline for launching 5G services in Pakistan. The 5G spectrum auction, initially planned for March 2023, has already been delayed several times due to unresolved regulatory concerns, including the pending merger approval. Experts have warned that without an expedited resolution to the merger’s approval process, meeting the government’s April 2025 launch deadline for 5G services could be impossible.
The merger is also seen as a crucial step toward facilitating the release of the 5G spectrum. Once the CCP approves the merger, the transaction must undergo additional regulatory scrutiny, including approvals from the PTA, CCP, and the State Bank of Pakistan (SBP). This multi-step approval process could take another one to two months, which further compresses the timeline for launching 5G services.
The telecom industry is closely watching the situation, as the outcome of this merger will not only affect the competitive landscape but also have significant implications for the future of telecommunications and digital services in Pakistan. While the Ufone-Telenor merger holds the potential to reshape the market and spur technological advancements, the regulatory delays are raising serious concerns about Pakistan’s ability to keep pace with global developments in telecom infrastructure, particularly the rollout of 5G services.
As the merger awaits final approval from the CCP, industry stakeholders and the public remain hopeful for a swift resolution to avoid any further disruptions to Pakistan’s telecom sector and its broader digital transformation goals.
