THERE is a question mark regarding the ownership of Ufone. Pakistan Telecommunication Ltd (PTCL) has openly and regularly claimed that the telecom company is part of the Etisalat group, whereas the records show that the government of Pakistan was the majority shareholder of Ufone.

Ufone was established in 2001 as a subsidiary of PTCL, and after the bidding process, Etisalat got management control of PTCL in 2006 as well as its subsidiary Ufone with 26 per cent shares at $2.6 billion.

Possibly due to the impression that Ufone is an entity of the Etisalat group, the loss-making spree of Ufone was never disclosed to the public, although PTCL was legally a stateowned entity. At the same time, the attitude of the Ministry of Information Technology and Telecommunication (MolTT) has enforced the impression that Ufone was an entity of the United Arab Emirates-owned telecom company Etisalat (now named as `e&`).

Under the subheading `About Ufone` in a press release issued by the company on August 13, 2017, it is stated, `Ufone is an Etisalat Group company with its presence in all the major cities of Pakistan.` Similarly, a press release issued on December 19, 2024, said, `Following PTCL`s privatisation, Ufone became a part of the Etisalat group in 2006.

The company commenced its operations on January 29, 2001.` Not only the press releases but the Ufone website states in the `About us` section on its business landing page, `Ufone is an Etisalat Group Company that started its operations in January 2001.` Following this information on the same website under `Company profile`, it says, `Pakistan Telecom Mobile Limited (PTML), operating under the brand name Ufone 4G, is a wholly-owned subsidiary of PakistanTelecommunication Company Limited (PTCL).` Meanwhile, a spokesperson of the company says that both the information on the website is correct, as the Etisalat group has the management of Ufone as well as PTCL.

The spokesperson added that both Ufone and PTCL are the same: owned by the government of Pakistan with management controlled by Etisalat. PTCL`s board is headed by Azfar Manzoor, Special Secretary, MolTT, so both entities are not considered separate that is why the financial results of PTCL and Ufone are announced together.

While responding to the query that Ufone was an entity of Etisalat, Minister of State forInformation Technology and Telecom Shaza Fatima Khawaja acknowledged that Ufone was a subsidiary of PTCL and Etisalat had 26pc shares with management control.

Incidentally, senior officials at the MolTT stated that the PTCL and the Ufone boards shared some members, and this is the general impression, possibly because the details of the Ufone board are neither listed on its website nor ever highlighted by the MolTT.

Whereas, in the section related to the details of its board members on the PTCL website, it is stated that Mr Abdulrahim Al Nooryani is the Chairman of Etisalat International Pakistan LLC, which is a subsidiary of the EmiratesTelecommunication Company. He is also Chairman of the Board of Directors of Pak Telecom Mobile Ltd, or Ufone.

At the same time, no record is available at the Pakistan Stock Exchange to prove that Ufone became part of Etisalat or Etisalat International Pakistan LLC in 2006.

Most noteworthy, a certified copy of the company obtained from the Securities and Exchange Commission of Pakistan and dated May 2024 shows that out of 6.5bn shares of Ufone, PTCL holds close to a 100pc of shares, with one share each held by the nine probable members of the Ufone board five of the individuals are associated with Etisalat, and some were nominations made by the IT ministry, though there aren`t any individuals from the MolTT on the board any more.

The last member on the Ufone board from the ministry was Aisha Humera, former additional secretary, MolTT. Though she is still on the board, she was transferred to the Ministry of Climate Change and Environmental Coordination in September 2024. She was also a member of the Ufone board, only to be changed by Senator Anusha Rehman Khan; the other two members nominated by the MolTT are Sikander Naqi and Shaikh Salahuddin.

One of the key responsibilities of the board members nominated by the MolTT was to protect the financial interest of the state, as Ufone was owned by Pakistan.

The constant financial loss of Ufone has led the PTCL Group into the red with a negative balance sheet of Rs14.39bn in the year 2024.

However, Senator Anusha Rehman, who is also a member of the Senate Standing Committee on Information Technology & Telecommunication, did not respond to the query about the reasons for the regular financial loss suffered by Ufone. •