Alveena Ahmad
The provider of digital financial services, Easypaisa, released a statement after Telenor Pakistan was acquired by PTCL.
Since Easypaisa is not a party to the transaction, it has reassured its customers that the sale of Telenor Pakistan will not affect its business operations.
We want to reassure our valued customers that our operations are unaffected by the recent news about Telenor Pakistan’s sale. This transaction does not involve Telenor Microfinance Bank (TMB) or its flagship platform, Easypaisa. It stated in a tweet on X that “Your deposits are totally secure and this development will not impact them in any way.”
In response to recent news about Telenor Pakistan's sale, we want to assure our valued customers that our operations remain unaffected. Telenor Microfinance Bank (TMB) and its flagship platform, easypaisa is not part of this transaction. Your deposits are completely secure, and…
— easypaisa (@easypaisa) December 17, 2023
The statement read, “The State Bank of Pakistan (SBP) licenses and oversees Telenor Microfinance Bank (TMB) & Easypaisa as independent financial institutions. Subject to regulatory approvals, we are a joint venture between Telenor B.V. and Ant Group, who are devoted shareholders committed to the Bank’s continuous transformation from a Microfinance Bank to a Digital Retail Bank.
“We implore our clients to ignore any unfounded rumors and to keep believing in our dedication to upholding the best possible security and service standards. We appreciate your trust, and business as usual will continue as usual. It continued, “We are still dedicated to pursuing our goal of creating a digital, financially inclusive Pakistan.
This follows recent scam messages and social media rumors that claimed Easypaisa’s financial stability was in jeopardy following the sale of Telenor Pakistan and urged users to take their money out. Remarkably, a similar message stating that U Microfinance Bank (UBank) was going bankrupt because of enormous losses was circulating a few weeks prior.
Not to add that UBank had rejected the reports at the time, calling them unreliable. Afterward, UBank’s half-yearly reports covering the period of January through June 2023 revealed a solid capital basis.
It seems that a rerun of the UBank-like broadcast for Easypaisa/Telenor Bank might have come from a single source, presumably a rival or troubled market participant who wanted to see UBank or Easypaisa fail.
Announcing last week, Pakistan Telecommunication Company Limited (PTCL) said it would buy all of Telenor Pakistan for $495 million in cash and debt-free terms. The Norwegian operator and the PTCL Group had been in talks for some time regarding the latter’s purchase of its Pakistani arm. The CEO of Telenor Group first alluded to this possibility in 2022 when he discussed the company’s intention to move its focus from Asia to Europe and the possible sale of its Asian assets, which included Pakistan.
After combining operations and customer base, Ufone and Telenor Pakistan will become the biggest cellular operator in Pakistan, overthrowing Jazz, which has held the top spot in the country’s cellular market for more than fifteen years.
