Etisalat May Further Delay Pakistan Payment

Etisalat will likely withhold its fifth payment in a row, due on March 31st, 2010, to the Pakistani Government for the acquisition of a 26 per cent in Pakistan Telecom (PTCL) as a dispute over the transfer of properties to PTCL remains unresolved, reported Gulf News, quoting Mohammad Omran, Chairman Etisalat.

“Until now, the government [of Pakistan] has not released a list of properties to be converted [to PTCL  ownership],When the list is released, the money will be paid”, said Chairman Etisalat in an interview with Gulf Times.

Etisalat is withholding $799 million worth of payments to the Pakistani Government until properties originally part of the company’s 2006 acquisition in PTCL are registered in PTCL’s name.

In an emailed statement, Pakistan’s Ministry of Privatisation said Etisalat’s next payment is due March 31. Of the 311 properties in question, 118 are already in the possession of PTCL and 17 properties are “under some litigation”. The government is now working to appraise the properties, the statement said.

“We have already approached provincial governments to put value to the properties in their respective provinces,” said Shahab Khawaja, federal secretary at MOP. “Final valuation has not been conveyed. As soon as we get it, [the] same will be conveyed to Etisalat and PTCL.”

In June 2005, etisalat’s $2.6 billion bid beat those of Singapore Telecom and China mobile for the purchase of a 26 per cent stake in PTCL, Pakistan’s telecom operator.

Renegotiation of the deal postponed signing until April, 2006 but did not affect etisalat’s bid. The contract stipulated a $1.4 billion up-front payment and for the remainder to be paid in six-month instalments over 4.5 years. The deal also guaranteed etisalat management rights of PTCL operations.

Since late 2007, etisalat has said it is considering acquiring an additional 25 per cent stake but has not taken action.

Via Gulf News

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Ali Ahmad

    Its like giving away our assets for free!!!

  • Kashif Bashir

    they will never pay anything to Govt of Pakistan. They will looted the customer and will say BYE BYE to govt of Pak. Long live Pakistan.

  • The Truth

    Are we still proud of our Arab brethern looking after one of our main national assets. We give them the company to run, they do nothing to improve PTCL, Ufone is going downward every day. Then they want to do a land grab in major urban areas to sell of national land and yet they still don’t pay us. Meanwhile, the only think people are interested in in PTCL is feathering their own nests. Since Etisalat put in their joint CEO to Ufone they have lost more customers than ever before.

  • Tahir Mueen

    My comment is that PTCL is providing POOR SERVICES to the CUSTOMERS & giving SERVICES only to their RETIRED PTCL EMPLOYEES while other CUSTOMERS like us have to suffer as their COMPLAINT is not even REGISTERED on 1218 & PTCL MANAGEMENT does not take any action in this regard

  • a m malik

    We must understand that only the rich have relatives. Why do we expect so much from our brethrens who only come to enrichen our corrupt poliicians and fill their own pockets as well. PTCL take over is an example. Etisalat does not provide and telephone directories and saves a considerable amount on it. Again no country charges for the enquiry to find out the numbers. Etisalat introduced the same in Pakistan to suck our blod further. Not contended, the worst part is that usually the numbers provided are incorrect and it takes 3-4 tries before getting the correct numbers. This is another way of simming us. The present with-holding of the amount of about $800 is only a topi drama. Some one must have objected to some happening and in the process to pressurize that department and in collusion with Etiselat, it would now be projected by our own corrupt elements that look this is what will happen if the property is not transferred. The dept. raising objection then goes under a pressure and would bend for not being accused of mismanagemnet and unable to deal with a problem. Long live the hitlers of our economy

    • Tahir Mueen

      Malik Sb aoa my name is TAHIR MUEEN I just wanted to comment that PTCL 1218 & 1217 are both USELESS as 1218 does not REGISTER the COMPLAINT of the CUSTOMERS while 1217 does not provide any telephone number if asked from them both these services are USELESS & PTA is also doing nothing in this regard & they are helpless they can’t even FINE them or issue a warning

  • pkfunda

    God may live long pakistan.
    amin

  • a m malik

    ptcl – the only improvement has been a responsive call center and that is all the improvement. The wires still hang losely in bunches in buildings presenting tthe same ugly looks as well inefficient services – the divisional engineers still rot in their comfi offices. Should they have occassional rounds and check the performance of the staff of their area, the rot would be arrested. Plus the enquiry charges should be stopped forth with or PTCL needs to publish their tele directories.
    am