According to a report in the media, a telecom company based in the Emirates is in talks to buy Telenor Pakistan. The ownership of Pakistan’s second-largest cellular service provider may soon change hands as Telenor Pakistan looks to leave the country amid rising costs of doing business and declining prospects.

Dawn reported that people familiar with the situation said that Telenor Pakistan is in talks to sell its operations to a multinational telecom company based in the Emirates.

Even though a Telenor Pakistan spokesperson declined to comment on the development, insiders told Dawn that talks between the Emirati company and Telenor have reached an “advanced stage.” The Emirati company already has a significant presence in Pakistan.

“The Emirati company is interested in further consolidating its position,” the source stated. “The Emirati company already has a sizable presence in Pakistan, in nearly all key areas of the telecom sector.”

Dawn reported that the source claimed that the company had begun incurring losses as a result of the swift appreciation of the US dollar, citing the rising cost of doing business as the primary reason for the sale.

According to the source, the company’s operational costs have reached $55 million, with electricity prices accounting for the largest portion of this. According to documents, the company paid approximately $17 million in power bills alone in the previous fiscal year to maintain its infrastructure.

Considering this, specialists say it is justifiable that Telenor Pakistan would hope to pick up and move on and — according to the organization’s viewpoint — really like to venture into a locale where business prospects or paces of return are superior to in Pakistan.

The interested party wants to spend $780-910 million on the acquisition, despite the fact that the company had reportedly set an asking price of between $1 billion and $1.2 billion.

Also read: AI-focused reshuffles at SK Telecom (SKT)

Also read: Telecom Plus expands broadband arrangement with TalkTalk