ISLAMABAD: While acknowledging that the government holds ownership of PTCL and Ufone with a majority of shares, the Minister for IT & Telecom, Shaza Khawaja, also admitted that Ufone was not sharing its loss-making balance sheet with the government.
“Ufone is operationally under Etisalat; therefore, the government is not responsible for its continuous losses,” Shaza Khawaja stated while speaking to the media at a conference titled ‘5G and Beyond: Shaping the Future of Connectivity’.
The minister was asked about the persistent financial losses of the state-owned telecom company Ufone, especially when other telecom operators such as Zong and Jazz reported significant profit growth in 2024.
Ms. Khawaja clarified that since PTCL and Ufone’s operations are managed by Etisalat, the Ministry of IT is not accountable for Ufone’s financial condition. However, she reaffirmed that the Government of Pakistan owns PTCL, with Ufone as its subsidiary, but noted that Ufone’s financial statements were not provided to the government.
She added that the Pakistan Telecommunication Authority (PTA), as the telecom sector regulator, should be the one to address concerns over Ufone’s weak financial standing.
Notably, the minister also declined to answer why no representative from the IT Ministry was on Ufone’s board. Instead, she referred the question to the Secretary IT, who mistakenly conflated Ufone’s board with PTCL’s board.
The conference was organized by PTA in collaboration with Malaysia’s telecom regulator and Nokia Pakistan. Addressing the attendees, Ms. Khawaja argued against auctioning the 5G spectrum, stating that it would raise the cost of doing business for telecom companies.
She emphasized that high spectrum costs could ultimately be passed on to consumers, potentially slowing 5G adoption and hindering infrastructure development due to financial constraints.
The minister stressed that Pakistan should learn from the experiences of countries like Malaysia, which have already launched 5G, to avoid repeating their mistakes.
She also acknowledged that Pakistan had been experiencing internet congestion for the past six to eight months.
“This was due to the availability of only 274 Megahertz of spectrum in the country. However, I am grateful to the law minister and the judiciary for securing the release of 550 Megahertz of spectrum, which had been tied up in court cases,” she stated.
Ms. Khawaja outlined the roadmap to enhance internet connectivity in Pakistan, including the introduction of a fiberization policy, increasing connectivity with international undersea cables, and fostering private-sector investments through favorable policies.
The conference was also addressed by Malaysia’s High Commissioner to Pakistan, Mohammad Azhar Mazlan; Minister for Planning and Development, Ahsan Iqbal; PTA Chairman, Retired Major General Hafeez Ur Rehman; and Mikko Lavanti, Senior Vice President for the Middle East and Africa at Nokia Mobile Networks.
The event featured technical sessions, panel discussions, and knowledge-sharing activities, setting the stage for future technological advancements and collaboration. Through this partnership, PTA and MCMC aim to drive innovation, facilitate knowledge exchange, and strengthen digital capabilities in both countries.
