Category: 3. Business

January 01, 2026 (MLN): Due to maturing foreign
currency loans, securities, and deposits, Pakistan’s foreign currency assets
are expected to see a net outflow of $30.96bn, according to the latest
liquidity report released by the State Bank of Pakistan (SBP).

The total outflow is categorized based on residual maturity,
with the most pressing concern being the more than three months up to one-year
segment, which accounts for a substantial $20.36bn.

Meanwhile, outflows of $6.17bn are due within the next
month, and an additional $4.43bn is payable between the one-to-three-month
window.

The principal outflows amount to $27.41bn, of which $17.94bn
falls in the more than three-month up to one-year maturity range. Interest
payments add another $3.55bn to the financial burden.

Aggregate short and long positions in forwards and futures
indicate a net shortfall of $1.99bn. Short positions dominate at $2.28bn, while
long positions provide partial offset at $286m.

Additionally, contingent liabilities in foreign currency
total $1.18bn, primarily comprising other contingent liabilities that fall due
within the next month.

These figures underline the near-term strain on Pakistan’s
external account, which emphasizes the critical need for continued inflows,
timely rollovers, and prudent management of external liabilities to preserve
reserve adequacy.

Furthermore, Pakistan’s official reserve assets totaled
$24.49bn as of November 30, 2025, according to the latest data released by the
State Bank of Pakistan (SBP), even as the country faces significant short-term
foreign currency obligations.

The reserve portfolio is anchored by foreign currency
reserves in convertible currencies, which constitute $12.94bn of the total
holdings. This represents the most liquid component of the central bank’s
external buffers.

Gold holdings provide substantial support to the reserve
position, with the SBP maintaining 2.082 million fine troy ounces valued at
$8.73bn. This precious metal stockpile serves as a strategic hedge against
currency volatility and external shocks.

Currency and deposits with various institutions account for
$11.11bn of the reserves. Of this amount, $6.77bn is deposited with other
national central banks, the Bank for International Settlements, and the
International Monetary Fund, while $4.33bn is held with banks headquartered
outside the reporting country. An additional $13.71m is placed with domestic
banks’ foreign branches.

Beyond official reserves, Pakistan holds an additional
$92.65m in other foreign currency assets, comprising securities, deposits,
loans, and financial derivatives not classified under official reserve assets.

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Pakistan Telecommunication Company Limited (PTCL) has officially completed the acquisition of 100% of the issued share capital of Telenor Pakistan and Orion Towers. The acquisition, which took effect on December 31, 2025, positions PTCL as the dominant player in the country’s telecom landscape, as it now integrates these entities alongside its own subsidiaries, Ufone and U Microfinance Bank.

The acquisition will result in the formation of a new consolidated entity, “MergeCo,” which will include Ufone and Telenor Pakistan. During the transition, Telenor Pakistan will continue to operate as a separate legal entity, with plans for full integration after obtaining necessary regulatory approvals.

PTCL, in a notice to the Pakistan Stock Exchange (PSX), confirmed that the transaction has been finalised and shares for both companies have been transferred to PTCL’s name. The deal was finalised in line with regulatory requirements, with PTCL pledging to keep stakeholders informed of further developments.

Hatem Bamatraf, President and CEO of PTCL and Ufone, announced the completion of the deal in a media briefing, stating that this consolidation will improve the quality of services for Pakistan’s telecom users. He also highlighted ongoing talks surrounding an outstanding $800 million issue related to the privatisation of PTCL, which is expected to be resolved soon.

With the 5G spectrum auction approaching, PTCL and the newly formed telecom entity are preparing to participate in the auction. Bamatraf confirmed that telecom industry concerns will be taken into account, with spectrum being offered under favorable terms. He also expressed confidence that the merged company will be well-positioned to optimise spectrum resources and enhance network capabilities.

PTCL acknowledged Telenor ASA’s contribution to Pakistan’s telecom sector over the years, praising its role in raising service standards and expanding connectivity. Looking ahead, MergeCo aims to deliver advanced digital services that align with Pakistan’s growing digital economy, empowering businesses and individuals with improved technology.

The merger is expected to strengthen Pakistan’s digital infrastructure, offering new opportunities for innovation and service delivery. The next step involves receiving the memorandum of information from the Pakistan Telecommunication Authority (PTA) ahead of the 5G spectrum auction, which is expected to provide further clarity on terms and conditions.