TIP Urges Recovery of PTCL Privatization Dues

Transparency International Pakistan (TIP) has formally urged the federal government to initiate recovery of outstanding dues amounting to approximately $800 million from Etisalat, arising from the privatization of Pakistan Telecommunication Company Limited. The organisation has further indicated that, due to prolonged delays, the total financial liability has escalated to an estimated $6 billion.

In a written communication addressed to Adviser to the Prime Minister on Privatisation Muhammad Ali, TIP has called upon the authorities to direct the Pakistan Telecommunication Authority (PTA) to commence formal recovery proceedings.

TIP has noted that the matter originates from the 2005 privatization transaction and was previously brought before the Supreme Court of Pakistan in 2011, at which time the outstanding liability was estimated at approximately $1.6 billion. The organisation contends that the amount has since increased significantly as a result of continued non-settlement.

Additionally, TIP has highlighted the financial impact of a contractual penalty of 2%, estimating losses of approximately $1.5 billion over a seven-year period commencing in 2005, alongside the unpaid principal amount exceeding $800 million under the original agreement.

According to TIP, the persistent failure to recover these dues reflects deficiencies in regulatory enforcement and has resulted in substantial losses to the national exchequer. The organisation has recommended that the issue be addressed within the framework of ongoing bilateral engagements between Pakistan and the United Arab Emirates concerning PTCL-related matters.

The issue was reportedly discussed earlier this year during a high-level meeting in Dubai between Deputy Prime Minister Ishaq Dar and senior officials from Abu Dhabi, including representatives affiliated with Etisalat.

TIP has reiterated its request for a comprehensive review of the case and has called for immediate directives to the PTA to recover the outstanding dues, which have accumulated over an extended period spanning nearly two decades.