HISTORY PTCL is the first telecommunication industry of Pakistan. In order to understand how PTCL Corporation was developed, one need to look before partition since telecommunication services were introduced in the subcontinent by British through bringing post and telegram services. During the independence era Pakistan had only 14000 telegraph and telephone but with the passage of time and increasing needs of organizations and people for communication telegraph and telecommunication department were separated. Also separate department of post services and telephone and telegraph were developed in 1991. Pakistan Telecommunication ordinance which not only led to the transformation of telegraph and telecommunication department into Telecommunication Corporation of Pakistan but also allowed potential new entrants to enter the telecommunication sector of economy. Afterward government took an initiative to bring foreign investment in telecommunication sector by privatization of Telecommunication Corporation in 1991. Although PTCL was privatized but still it was enjoying monopoly in the telecommunication sector therefore on the basis of Telecommunication Corporation monopoly in Pakistan, Pakistan Telecommunication Corporation was developed and listed on Stock Exchange in 1996 under the ordinance of " Pakistan Telecommunication Reorganization Act 1996 " (Shah, Rashid, Ullah & Ahmed, 2009). PTCL was a government organization till 2005 but later in 2006 decision was made regarding privatization of PTCL, resulting in PTCL owning 62% of the shares, whereas 26% shares were occupied by Etisalat Telecommunication Company of United Arab Emirates and the remaining shares were offered to public. PTCL even after privatization enjoy monopoly in the land line market by occupying 96% of the market share, and is the largest telecommunication firm in Pakistan. Privatization of PTCL During nineties the wave of privatization started in Pakistan as a result many public owned organizations were sold. The main purpose of the privatization was to bring investment in Pakistan and decrease government involvement in public organizations. Similarly for this purpose, PTCL was also privatized. During the privatization, a decision was made to sell 26% shares of PTCL. Among all bidders, three bidders were shortlisted incliding Etisalat UAE
Download Free PDF View PDF
