Former federal IT minister Anusha Rahman has resigned from the Senate Standing Committee on Information Technology amid escalating controversy over Pakistan Telecommunication Company Limited’s (PTCL) proposed $1 billion merger with Telenor and mounting concerns about governance at Ufone, PTCL’s wholly-owned subsidiary.
Sources confirmed that Anusha Rahman, a senior lawmaker, has shifted to the Senate Standing Committee on Health, stepping away from her IT role as scrutiny intensifies over PTCL’s financial practices and regulatory compliance. Her resignation is being seen as a major political development at a critical time for Pakistan’s telecom sector.
The controversy deepened during a recent IT committee session when members pressed the Ministry of IT to reveal the names of Ufone’s board directors. Senator Kamran Murtaza raised questions over hefty director payments, claiming each director received $5,000 per meeting, despite Ufone’s ongoing financial losses.
Committee members alleged that PTCL has been absorbing Ufone’s losses into its own accounts, raising transparency and accountability concerns. While PTCL is listed on the Pakistan Stock Exchange, Ufone is not — a situation critics say deprives shareholders and the government of potential profits. This practice has fueled fears of cross-subsidization, which the Competition Commission of Pakistan (CCP) has been closely reviewing as part of its scrutiny of the merger.
In its briefing to the Senate IT Committee, the CCP revealed that PTCL failed to present a clear investment plan for the $1 billion merger, a mandatory requirement for approval. The commission also warned of systemic risks, citing PTCL’s repeated resistance to regulation, including its history of challenging Pakistan Telecommunication Authority (PTA) decisions in court and obtaining stay orders, such as on Significant Market Power (SMP) rulings.
The CCP further highlighted risks tied to PTCL and Ufone’s joint management structure, noting that PTCL holds a Long Distance International (LDI) license, while Ufone operates under a Cellular Mobile Operator (CMO) license. This overlap, the CCP warned, creates opportunities for anti-competitive behavior. It also flagged non-compliance with separate accounting requirements as evidence of possible cross-subsidization between the two entities.
PTCL’s dominant position in the market was another focus of the CCP’s concerns. The watchdog referenced the International Clearing House (ICH) case, where PTCL and 13 other operators were penalized for collusive practices, to argue that allowing PTCL to absorb Telenor without strict conditions could further harm competition and consumer interests.
The planned PTCL-Telenor merger, valued at around $1 billion, was initially seen as a transformative move for Pakistan’s telecom sector, combining Ufone’s mobile services with Telenor’s extensive subscriber base. However, questions about PTCL’s financing capacity have raised red flags. With recurring losses and heavy reliance on state support, the CCP has questioned how PTCL will fund the acquisition and sustain operations without worsening its financial position.
The Senate committee’s deliberations highlighted deep skepticism about the merger’s viability and governance standards. The Ministry of IT’s reluctance to disclose Ufone board members’ names further fueled speculation about potential conflicts of interest.
Anusha Rahman’s resignation comes amid this backdrop of regulatory and political turbulence. Her dual role as a lawmaker and Ufone board member had already been under scrutiny, and her exit signals widening divisions between policymakers and corporate stakeholders.
The telecom sector faces mounting challenges, including declining profitability, regulatory disputes, and rising operational costs. If approved, the PTCL-Telenor merger would further consolidate market power under PTCL, which is majority-owned by Etisalat, the UAE-based telecom giant. This foreign ownership has sparked debate over national interest, given PTCL’s role as Pakistan’s largest fixed-line operator.
Industry analysts warn that the merger’s outcome will shape the future of competition, pricing, and consumer choice in Pakistan’s telecom market. “Without strong regulatory checks, this deal risks entrenching monopolistic practices and limiting innovation,” said a telecom industry expert.
For now, the CCP’s objections and Anusha Rahman’s resignation underscore that the merger’s path remains uncertain. The development reflects broader concerns about transparency, accountability, and the direction of Pakistan’s telecom industry as it faces one of its most consequential regulatory battles in years.
