LAHORE, June 23: Financial institutions are reluctant to provide further credit facility to a cellphone company till its announcement that it will sell its 20 per cent shares materialises, it is learnt.

A source in one such bank told Dawn on Thursday that the company, from a Gulf state, required funds to expand its operation, but the financial institutions had ‘temporarily’ withheld the request for more credit.

“The banks will release the funds after the sale of the company’s shares,” he said.

Sensing stiff competition in Pakistan, the company was left with no option but to sell its shares to expand its network, the source said. “The sale of its shares will not only help it gain trust of its financial institutions, but also stay in the competition.”

The company recently decided in principle to sell off its 20 per cent shares and is reportedly in negotiation with three foreign cellphone firms. According to the source, financial consultants have been hired to oversee the transaction.