Pakistan Still Struggles to Recover $800 Million from Etisalat

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Government of Pakistan has made all possible efforts to recover $800 million from Etisalat against the partial sale of PTCL in 2005-06, but all attempts, incentives or even threats remained unfruitful.

The government is struggling for this badly needed $800 million for over five years now, but Etisalat is stand still on its day-one stance since the dispute surfaced in early 2009.

Ishaq Dar, Finance Minister, was yesterday quoted by Reuters as saying that dispute is finally nearing its conclusion.

“The release of funds is expected shortly”, Dar told Reuters — a statement that we have heard over and over again during past few years.

Payment dispute between Etisalat and Government of Pakistan roots back to 3,248 properties that Pakistan had to transfer to PTCL under the sale purchase agreement.

Etisalat was maintaining that Pakistan must transfer these properties before its $800 million are released.

While majority of properties have been transferred, PTCL is still to gain the possession of 31 properties, but these are unlikely to ever be transferred due to various reasons including legal impediments.

Etisalat, on the other hands, is rigidly committed to hold the payment till all properties are transferred to PTCL, something – as mentioned above – that is not possible at all due to legal limitations.

Pakistan has repeatedly offered Etisalat to deduct the value of disputed properties and clear the remaining dues, but nothing has changed the situation.

It seems that Etisalat will keep holding of payment for next few years – as remaining properties are unlikely to be transferred to PTCL – while it appears that Government of Pakistan will have to decide punitive action against the group to finally recover its money.

For your reference, check below the selected history of the dispute between Etisalat and Government of Pakistan.

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