The government has reportedly halted plans to rebrand the proposed merged entity of Ufone and Telenor Pakistan as “e&”, amid legal and corporate governance concerns over whether the move can proceed before the merger is formally completed.

According to informed sources, Ufone’s board of directors had approved the “e&” brand for the merged company. However, the proposal has been put on hold after concerns were raised within government circles, prompting intervention at the highest level.

Sources said the government is considering seeking a legal opinion from the Law Division to determine whether Ufone’s board has the authority to approve the corporate identity or brand name of the merged entity before all legal, regulatory and corporate requirements for the merger have been fulfilled.

At the center of the debate is whether the board of a subsidiary company can legally authorize the branding of a merged entity before the transaction has been completed under applicable laws and regulatory approvals.

Pending the legal opinion, the commercial launch of the “e&” brand and related marketing campaign is expected to remain on hold, potentially delaying the broader rebranding process.

The issue has also sparked fresh debate over corporate governance within state-owned enterprises and the responsibilities of government-nominated directors. Critics argue that board members representing the government must ensure decisions involving strategically important national assets fully comply with legal requirements and governance standards.

Government-nominated members on Ufone’s board include Senator Anusha Rahman Khan and two federal secretaries, raising questions over whether all legal and administrative implications were adequately considered before the proposed rebranding was approved.

The proposed name change forms part of PTCL’s acquisition of Telenor Pakistan and the planned merger of Ufone and Telenor, a transaction that is expected to create one of Pakistan’s largest mobile telecom operators.

Sources added that some government officials are also concerned that adopting the “e&” brand could remove the word “Pakistan” from the company’s public identity despite its role in the country’s strategic telecommunications sector.

The Pakistan Telecommunication Authority (PTA) had, in a letter issued on June 16, 2026, approved the proposed brand name while directing the company to notify the regulator only after the legal completion of the merger and before any commercial rollout or marketing campaign. In a subsequent letter dated July 2, 2026, the regulator reiterated that the brand change could only take effect once the merger had been legally finalized and all regulatory conditions had been satisfied. Final approval is now expected to depend on the government’s legal review and regulatory assessment.