The federal government has stepped in to halt a proposed plan to rebrand the merged Ufone-Telenor entity under the global “e&” brand, citing legal, governance and corporate concerns surrounding the move.
According to sources, the proposal sparked controversy after the Ufone board approved the new brand name despite the Pakistan Telecommunication Company Limited (PTCL) board previously deferring the same proposal. The Ufone board includes government-nominated directors, including a sitting PML-N senator and two federal secretaries.
The approval reportedly raised concerns at the highest levels of government, leading authorities to immediately review the decision and suspend the rebranding process.
Officials are now considering seeking legal guidance from the Law Division to determine whether the board of a subsidiary company has the authority to approve the branding of a merged entity before all legal, regulatory and corporate requirements related to the merger have been completed.
Until a formal legal opinion is received, the proposed rebranding exercise has effectively been put on hold.
The issue has also reignited debate over governance standards within state-owned enterprises (SOEs). Questions have been raised regarding the accountability of government-appointed board members, who reportedly receive up to $5,000 for each board meeting. Critics argue that directors responsible for overseeing strategic public assets must ensure every decision complies with applicable laws, corporate governance standards and Pakistan’s national interests.
The proposed name change comes after PTCL acquired Telenor Pakistan and initiated the integration of the two mobile operators, creating one of the country’s largest telecom companies.
However, replacing the long-established Ufone identity with the international e& brand has generated concerns within government circles, particularly over the removal of the word “Pakistan” from the corporate identity of a strategically important telecom operator.
Earlier reports also suggested that the rebranding proposal was facing additional hurdles beyond board-level approval. Sources indicated that the matter could ultimately require federal government clearance, especially in light of e&’s reported financial liabilities of around $800 million linked to Pakistan. While the company planned to proceed with the PTML rebranding, officials have subjected the proposal to greater scrutiny due to the outstanding obligations.
The government’s 67% ownership stake in the merged Ufone-Telenor entity further strengthens its role in determining the final outcome of the branding decision.
Meanwhile, the Pakistan Telecommunication Authority (PTA) had already granted conditional approval for the proposed brand name in a letter issued on 16 June 2026. The regulator instructed the company to notify the authority once the legal amalgamation is completed and before launching any commercial activities or marketing campaigns under the e& brand.
In a follow-up letter dated 2 July 2026, the PTA reiterated that no commercial launch or promotional campaign should proceed until the legal merger process is fully completed and the authority has been formally informed.
For now, the rebranding remains suspended as the government reviews its legal and corporate implications before making a final decision.
