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


  • Qamar Zahid

    Ptcl is worst service provider in Pakistan. The kept on sending bills to me even after I disconnected the service. Still want me to pay 7000pkr and sent a legal notice as well. But I will not pay a penny to these a##wholes

    • Waseem Abbas

      same issue here

    • Tanweer

      same here.

    • guest

      800 million $ bhar main jain in se PTCL wapis ley lo, aik profitable company ko pata nahi kion pravitized kar diya.

    • ImranG

      Same here. But I didn’t receive any legal notice even though I have defaulted 4 times on different NICs. These a##whoIes need customers like me to teach them a lesson. They kept sending me bill on first take even though I cleared everything, then I decided to take revenge by defaulting over 50k.

      • Kamran

        Excellent Idea. We can rather charity that money to the needy ones.

  • Waseem Abbas

    same issue here :-(

  • Tanweer

    One of the worst services, etisalat don’t pay Pakistani government please until unless you get everything, though I support none either Pakistani government or you

  • Zawyar Ur Rehman

    Altaf bhai se keh k etisalat k president ki bori tayar krwao!

  • Dr. Aamir Liaquat Hussain

    @aamir7 can you share the agreement between ptcl and etisalat.
    what about rumors that its real estate deal actually?

  • Things I see these days
    1. Someone has to pay millions to govt
    2. Govt. Borrowed millions from others
    3. Someone has transfered black money in millions in Switzerland banks
    4. A fraud company (GMI) earned millions from innocent Pakistanis.
    But our institution came to know when it happened, and after some months they are free to do another fraud.

  • Umer Daraz

    ptcl ka pensioner 5 year se pension half melne ke waja se tension main hai, aur case be kya hai, aur wo be december 2014 se court us ka fasla daba ke raka hoa hai, kya insaf hai

    • Altaf

      ETISALAT is a cheater Company. It is same like someone buy a house on installment and and pay installment after getting rent of the house.

      They have fired thousands of experienced employees – and recruited then connected ones(chache, mamay, tayee) & the Buddoos. I have served in ETISALAT- UAE because their buddoss does’nt know any thing except making money from any source like Dubai is now a Randi Khan. Buddoos are now in PTCL – all because of their Pakistani accomplice who assisted them a lot. Visit PTCL HQs and you will see girls around these Buddoos. Think any profitable is sale out any where in the world??

  • Geo Dost

    Can you please do an analysis of how much Etisalat has taken in terms of dividend and technical/management fee from PTCL. I think it would be more than the amount payable.

  • PTCL is the worst..