ISLAMABAD: A major change planned for Pakistan’s telecom sector has been put on hold after the federal government raised legal and governance concerns over the proposed rebranding of the merged Ufone-Telenor company to the global brand ‘e&’.
The move came after officials questioned whether removing the word “Pakistan” from the company’s corporate identity was appropriate. They also raised concerns about whether the Ufone board had the legal authority to approve such an important decision before all merger requirements were completed.
The Ufone board had approved the adoption of the ‘e&’ brand for the merged telecom company. However, PTCL’s board had already delayed making a decision on the same proposal. Since the board includes government-appointed directors, including senior public officials, the matter has attracted greater attention due to the state’s involvement in the company.
Following the board’s approval, government authorities began reviewing the legality of the decision. Officials are also considering seeking advice from the Law Ministry. The review will determine whether a subsidiary’s board can approve branding changes before all legal, regulatory, and corporate processes related to the merger are finalised.
As a result, the rebranding process has been paused until a final legal opinion is issued. The planned shift from the long-established Ufone brand to ‘e&’ has sparked debate within official circles. Many officials believe the change could affect the national identity of a strategically important telecom company in Pakistan.
Authorities have also questioned whether removing the country’s name from a government-linked company aligns with national interests. The telecom sector is considered part of the country’s critical infrastructure, making such decisions highly sensitive.
The issue has become more significant due to reported financial obligations linked to ‘e&’. Officials highlighted nearly $800 million in outstanding liabilities connected to Pakistan. These financial concerns have increased scrutiny of the proposed rebranding, with authorities examining whether such a major corporate change should move forward before unresolved matters are addressed.
The federal government remains the largest shareholder in the merged Ufone-Telenor company, with an estimated 67% ownership stake. This gives the government considerable influence over strategic decisions affecting the company. The debate has now expanded beyond branding and focuses on the governance of state-owned enterprises and the responsibilities of government-appointed board members.
Officials stressed that directors representing national interests must ensure every decision follows legal procedures, corporate governance standards, and public interest. The controversy has also renewed discussions about accountability within state-owned companies.
Reports suggesting that some government-appointed directors receive up to $5,000 for each board meeting have further increased calls for greater transparency. Observers believe important corporate decisions should be made with complete legal compliance and clear public oversight.
Earlier, the Pakistan Telecommunication Authority (PTA) approved the proposed ‘e&’ brand name through a letter issued on June 16, 2026. However, the regulator attached specific conditions. It instructed the company to inform the PTA only after the merger is legally completed and before launching any commercial activities under the new brand.
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The PTA repeated the same instructions in another communication dated July 2, 2026. The regulator reaffirmed that the company must complete all legal and regulatory requirements before officially introducing the new corporate identity. As the review continues, the future of the rebranding plan remains uncertain.
