Issue of Etisalat’s $800 Million Pending Payment Expected to be Resolved with New Govt

The long and overdue payment related to the 2005 privatization of Pakistan Telecommunication Company Limited (PTCL) will finally be resolved when the new Pakistani government comes into power, according to Bakheet Ateeq Al-Romaithi, the acting consul general of UAE in Karachi.

“I am honest with you, there is no issue at all and it is between two brothers. I am 100 percent sure the issue will be resolved after the new government takes up the matter”, Al-Romaithi said after the first meeting of the Pakistan-UAE Business Council on Tuesday at the headquarters of the Federation of Pakistan Chambers of Commerce & Industry in Karachi.


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“It is between two brothers and can be amicably resolved”, he continued, adding that the amount is small, compared with how much the UAE has invested in infrastructure and education in Pakistan.

Privatization Secretary Irfan Ali recently told Arab News that if the matter was not resolved, the Pakistani government will approach the International Court of Arbitration in London as a last resort.

“Etisalat is delaying payments claiming that Pakistan has yet to alter 3,500 properties as part of an agreement made with the government of Pakistan,” said Ali. “That process, however, was completed in 2015, barring some 33 properties that were not transferable and were to be decided upon at a later stage, as per the agreement.”

Recap

Pakistan privatized PTCL, its national telecommunication company, in 2005 through a bidding process. Etisalat acquired a 26 percent stake and management control for $2.6 billion. However, the company withheld $800 million and the issue remains unresolved after more than a decade.

After the sale to Etisalat, a further 12 percent of PTCL shares were sold to the general public in 2006 under an intensified privatization program during Prime Minister Shaukat Aziz’s time in power. The remaining 62 percent of shares remain under the control of state-owned corporations in Pakistan.

Pakistan at Loss

The bilateral trade between Pakistan and UAE is currently tilted highly towards UAE. The trade stands at $8.3 billion, of which Pakistani exports accumulate to merely $869 million while imports stand at a whopping $7.52 billion. With a new government in office, it is expected that Pakistan will renew its trade policies with UAE.

Via Arab News


  • I wonder with how many countries will we nenew our trade ties! We are at loss in trade with every country except Afghanistan. So we should start all trade with them and stop with rest of the world :)

  • today i got my PTCL Bill the impose service tax on 4mb 815 rupees ? i am from swat why like this its tax exempted area

    • Office me jaa k sar pe maaro Bill aur kaho k theek kren

      Nai krty to Enjoy kro New lagwa lena jab tak chlta hai

      Mera 2 Months ka Bill tha 4MBPS ka to Rs 11600 bnaya hua

      Actual 7000 bnta hai Max

      Mujy Call aaee Isaid Bill theek kren aur Payment lelen

      They Never Call agaian

      LoLxxx

        • hahaha no our country already on edge .just this injustice they have to inform user that we imposing tax from next month but this already tax exempted area.what to say …….

    • Office me jaa k sar pe maaro Bill aur kaho k theek kren

      Nai krty to Enjoy kro New lagwa lena jab tak chlta hai

      Mera 2 Months ka Bill tha 4MBPS ka to Rs 11600 bnaya hua

      Actual 7000 bnta hai Max

      Mujy Call aaee Isaid Bill theek kren aur Payment lelen

      They Never Call agaian

      LoLxxx

  • Allah kre, ya pasie pakistan ko mel jaye, ameen, PTCL pensioner 2008 se pension na barne aur Superem court ne be un ke haq main fasla dya hai, 2015 main, Mager un ko abi tak ni mela, CJ Sb kuch ider be kyal kre. jazakAllah

  • They should pay us those $800 million in light of inflation since 2005. Pakistan should get what it deserves.

    • The values of the properties have appreciated beyond $800million so I think they want those 33 properties too. The article doesn’t give their side of the story so it isn’t fair.


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