The International Finance Corporation (IFC) has approved a $400 million loan for Pakistan Telecommunications Company Limited (PTCL), marking a significant step toward its acquisition of Telenor Group’s operations in Pakistan.

In a statement, PTCL confirmed the approval, which had been anticipated since April, with initial expectations for completion by July.

The IFC detailed in a seperate statement, $224.5 million will come directly from IFC and an additional $175.5 million from British International Investment and the Silk Road Fund, structured over a seven-year term.

This acquisition will see PTCL take control of Telenor Pakistan and Orion Towers Private Limited, with plans to merge its mobile subsidiary, Pak Telecom Mobile Limited (Ufone), with Telenor Pakistan.

The combined entity is projected to serve around 70 million subscribers, reducing the number of mobile network operators in the country from four to three. The main competitors left in the market will be Zong and Jazz.

The merger represents another strategic exit by Telenor from Asian markets, following its previous mergers in Thailand and Malaysia and its withdrawal from Myanmar. Telenor still retains its stake in Grameenphone in Bangladesh.

The IFC emphasised that Pakistan’s telecommunications sector presents substantial growth opportunities, with broadband and mobile user penetration currently below 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.

Commenting on the deal, Hatem Bamatraf, President and Group CEO of PTCL and PTML, highlighted the landmark nature of the financing: “This is the largest single financing ever secured in the industry, and it strengthens the PTCL Group while promoting long-term stability across the telecom sector. The enhanced economies of scale will allow the industry to contribute more effectively to Pakistan’s economic and social progress.”