IFC-Led Consortium to Provide up to $400 Million to PTCL to Boost Digital Connectivity in Pakistan

IFC, alongside other investors, is providing up to $400 million to Pakistan Telecommunication Company (PTCL) to finance its acquisition of Telenor Pakistan Private Limited and Orion Towers Private Limited. The financing package and the subsequent acquisition are aimed at increasing investments in digital infrastructure, enhancing network quality and coverage, while fostering competition and spurring innovation in Pakistan’s telecom sector.

The seven-year loan to PTCL comprises $224.5 million from IFC’s account and managed funds, and $175.5 million mobilized from British International Investment (BII) and the Silk Road Fund (SRF). Through the acquisition, PTCL plans to merge its mobile subsidiary Pak Telecom Mobile Limited (PTML or Ufone 4G) with Telenor Pakistan, unlocking operational and financial synergies, boosting digital connectivity, and accelerating innovation in high-quality, affordable digital products and services. It is also anticipated to  enable increased investments in digital infrastructure, especially in underserved regions, to boost network coverage and optimize the customer experience.

"We are deeply appreciative of the IFC-led consortium for their pivotal role in financing this transformative deal, which marks a defining moment for Pakistan’s telecom sector,” said Hatem Bamatraf, President and Group CEO, PTCL & PTML. “This is the largest single financing ever secured in the industry, and it not only strengthens PTCL Group but also supports the long-term financial stability and sustainability of the entire telecom sector by enabling greater economies of scale. As a result, the industry will be better positioned to contribute to the national economy and societal progress. Through this strategic move, PTCL Group remains fully committed to delivering high-quality cellular and data services to an even wider customer base across Pakistan soon."

While Pakistan has made progress in developing its telecommunications sector, substantial investments are still needed to boost connectivity and address regulatory, coverage, and affordability issues. The country’s fixed broadband sector penetration rate and unique mobile subscriber penetration rate—the number of people who own a mobile phone—are both below the regional averages.

“Pakistan’s telecommunications market offers significant opportunities for growth and investment,” said Khawaja Aftab Ahmed, IFC's Regional Director for the Middle East, Pakistan and Afghanistan. “This investment reflects IFC's commitment to bolstering inclusive, high-quality digital connectivity and infrastructure in the country by working together with our partners, including the PTCL Group, the Government of Pakistan, as well as co-investors BII and SRF.”

This investment reflects IFC's commitment to developing digital infrastructure in Pakistan by supporting the sustainable growth of PTCL, a subsidiary of Emirates Telecommunications Group Company PJSC, or e&, a major global telecom group and an important strategic partner of IFC. It is also part of IFC’s broader commitment to narrowing the digital divide in Pakistan to boost financial inclusion, improve access to education and health services, and enhance the economy’s productive capacity.