Has Telenor Finally Exited Pakistan Amid MNC Exodus?
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Synopsis
Telenor Group has made a significant exit from Pakistan by selling Telenor Pakistan to PTCL as the business climate deteriorates. This exit is part of a larger trend where multinational corporations are withdrawing due to economic and political instability, raising concerns about the future of foreign investments in the region.
Key Takeaways
- Telenor Group has exited Pakistan.
- The sale of Telenor Pakistan to PTCL was completed amidst economic challenges.
- Foreign companies are withdrawing due to instability.
- Significant financial implications for the local economy.
- Need for government action to restore investor confidence.
New Delhi, Jan 6 (NationPress) Telenor Group has officially exited Pakistan, revealing the successful conclusion of the sale of Telenor Pakistan to Pakistan Telecommunication Company Limited (PTCL). This move comes as the business environment in the country has become exceedingly challenging.
Telenor Group indicated in a recent announcement that when the sale was first disclosed on December 14, 2023, Telenor Pakistan was appraised at NOK 5.3 billion on a cash-and-debt-free basis.
“The finalization of the transaction confirms this valuation level (NOK 5.4 billion based on September currency rates, pending final year-end adjustments). Furthermore, Telenor has received NOK 0.9 billion in cash flow from Telenor Pakistan since the sale announcement,” they stated in an official communication.
In the meantime, the Qatar-based Al Thani Group is the latest in a series of foreign entities to withdraw from Pakistan due to economic instability and political unrest within the nation.
Al Thani's intention to divest 49 percent of its stake in the Port Qasim Power Project, a key component of the China-Pakistan Economic Corridor (CPEC) initiative, follows the outstanding receivables exceeding PKR 288 million.
The company voiced dissatisfaction over the delays in payment clearance by the Pakistani government and cautioned about potential operational halts if payment defaults occur, as reported in the UK-based Asian Lite newspaper.
This withdrawal by the Qatari firm follows major exits by companies across various sectors in recent times. Pakistan's financial instability, the depreciation of the PKR, and rising dues prompted Shell Petroleum to leave the country.
French energy giant TotalEnergies subsequently followed suit. “It’s alarming that Pakistan is no longer a primary market for Total,” remarked Adnan Sheikh, Assistant Vice President at Pak Kuwait Investment Company.
These rapid developments have raised concerns as the nation grapples with economic and political crises.
Point of View
I believe this recent exit by Telenor Group highlights the urgent need for Pakistan to stabilize its economic and political landscape. The trend of multinational companies withdrawing from the market poses a serious risk to foreign investment and economic growth. It is crucial for the government to address these challenges to rebuild trust and encourage international business engagement.
NationPress
09/01/2026
Frequently Asked Questions
Why did Telenor exit Pakistan?
Telenor exited Pakistan due to a challenging business environment characterized by economic instability and political turmoil.
What was the valuation of Telenor Pakistan during the sale?
Telenor Pakistan was valued at NOK 5.3 billion on a cash-and-debt-free basis at the time of the sale announcement.
What are the implications of MNCs leaving Pakistan?
The exit of multinational corporations from Pakistan raises concerns about the country's economic stability and its attractiveness for foreign investments.
What has been the response of other foreign companies?
Other foreign companies, including Shell Petroleum and TotalEnergies, have also exited Pakistan due to similar economic and political challenges.
What is the future of foreign investment in Pakistan?
The future of foreign investment in Pakistan largely depends on the government's ability to stabilize the economy and restore investor confidence.
