Ufone-Telenor merger: Proposed re-branding ignites considerable controversy

ISLAMABAD: The government has allegedly put the brakes on a proposed plan to re-brand the merged Ufone-Telenor company as “e&”, amid serious legal and governance questions over the removal of the word “Pakistan” from the telecom operator’s corporate identity and the authority of the Ufone board to approve such a move.

This was revealed by well-placed sources to Business Recorder, who further added that the controversy has also reignited broader questions over accountability of government-nominate directors serving on state-owned enterprises (SOEs), many of whom reportedly receive up to USD5,000 per board meeting.

The issue surfaced after the Ufone board approved the proposed “e&” brand name for the merged Ufone-Telenor entity.

The board includes government nominees, among them a sitting PML-N senator and two federal secretaries.

READ ALSO: PTML secures approvals to adopt ‘e&’ as brand identity

The development comes despite the Pakistan Telecommunication Company Limited (PTCL) board having earlier deferred the same proposal.

According to sources, the Ufone board’s decision prompted concern at the highest levels of government, resulting in an immediate intervention.

The government has reportedly pondering now to put the branding exercise on hold and may seek the opinion of the Law Division to determine whether the Ufone board possesses the legal authority to approve a corporate identity change for the merged telecom company.

Officials said the central legal question is whether the board of a subsidiary company can independently approve the branding of a merged entity before completion of all legal, regulatory and corporate formalities required under the merger framework.

Pending the Law Division’s opinion, final decision on the proposed “e&” branding may delay, effectively suspending the exercise until the legal position is clarified.

The episode has also sparked debate over governance standards in public-sector companies. Critics argue that board members entrusted with oversight of strategic state assets must ensure that decisions comply with the law, corporate governance principles and national interest, particularly when such boards include senior government representatives.

Among its non-executive directors is Senator Anusha Rahman Khan, who currently serves as Chairperson of the Senate Standing Committee on Commerce. Her presence, along with senior federal bureaucrats on the board, has intensified questions over whether adequate due diligence was undertaken before approving the proposed re-branding.

Business Recorder repeatedly approached Anusha Rehman, to seek her comments on the development; however no response was received till filing of this report.

This correspondent also sought the views of federal minister for information technology and telecommunications Shaza Fatima on the matter, but no response was received.

The proposed identity change follows PTCL’s acquisition of Telenor Pakistan and the subsequent integration of the two mobile operators, creating one of Pakistan’s largest telecom companies. However, the move to replace the long-established Ufone identity with the global “e&” brand has raised concerns within government circles over the disappearance of the word “Pakistan” from the corporate identity of a strategically significant telecom operator.

In a letter dated June 16, 2026, the Pakistan Telecommunication Authority (PTA) approved the brand name and directed the company to notify the Authority upon the effectuation of amalgamation under the applicable law and before the commercial launch or marketing campaign of the “e&” brand.

The regulator further instructed PTML to implement the approved brand modification strictly in accordance with the approval conditions.

However, the PTA, in its July 2 letter, has advised PTML/ Merge Co to notify the Authority upon effectuation of amalgamation as per law and prior to commercial launch/campaign, etc, of the brand name.

Copyright Business Recorder, 2026