Etisalat Still to Pay $800 Million Even After 11 Years of PTCL Buyout

Etisalat is still to pay around $800 million to Pakistan for 26 percent PTCL shares it bought back in 2004. According to Sale Purchase Agreement, which was never made public, Etisalat was to pay $2.6 billion against 26 percent stakes and controlling rights of PTCL. SPA was later revised by privatization commission and Etisalat was given an option to clear $2.6 billion in instalments.

Etisalat did clear $1.8 billion till 2007, but then never made any payment and held around $800 million by saying that Government of Pakistan has not transferred certain properties to PTCL.

As per the 2004 agreement, the government of Pakistan was required to transfer 3,248 properties to the PTCL. The properties were leased, hired and owned by the federal government.

Some of these properties are under litigation and were held through court orders. Despite all hurdles 3,214 properties out of total 3,248 properties have been transferred to PTCL.

Meaning that just 34 properties are now yet to be transferred to PTCL, and value of these outstanding properties is $92 million.

Pakistan has time and again requested Etisalat to clear its dues by deducting the value of outstanding payment, but Etisalat says that it will clear payment as per SPA in full only after complete transfer of properties.

On this account, Etisalat has been holding $800 million for over eight years now.

During this whole time, privatization commission has announced several times that its arrangement with Etisalat has been made and payment will be cleared soon, but nothing has materialized so far.

It is unclear that what Pakistan has in the plans to get this amount cleared.


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