LDI Companies Seek Parliamentary Help in Rs. 78 Billion Dispute with PTA

The long-standing dispute between the Pakistan Telecommunication Authority (PTA) and Long Distance and International (LDI) telecom operators has escalated as nine companies jointly approached the Chairman of the National Assembly Standing Committee on Information Technology, Aminul Haque.

In a formal letter, the LDI companies have appealed for parliamentary intervention to resolve the Rs. 78 billion standoff, which they say is threatening billions in foreign and domestic investment in the sector.

The LDI operators are pushing back against PTA’s refusal to renew their licenses without the clearance of outstanding dues. According to PTA, the companies collectively owe Rs. 78 billion Rs. 24 billion as the principal amount and Rs. 54 billion in surcharges for late payments.

The dues stem from a contentious issue regarding Access Promotion Contribution (APC) payments between 2008 and 2011.

The companies argue that PTA’s notifications on APC were unlawful and inconsistent with established rules, a stance also reflected in the Auditor General of Pakistan’s special audit report in 2011, which deemed PTA’s actions irregular.

Despite the expiration of their licenses, the LDI companies continue to operate, insisting on their right to function while the matter is sub judice. Some companies have even deposited over Rs. 5 billion into escrow accounts to demonstrate good faith.

Five of the nine companies have expressed willingness to settle the principal amount in installments, but they have raised objections to the conditions imposed by PTA under its proposed installment plan. The remaining four companies have categorically rejected the idea of installments under the current terms.

In their letter to the parliamentary committee, the LDI operators criticized PTA’s stance as not only unlawful but also damaging to investor confidence in Pakistan’s telecom sector. They called for immediate action to facilitate the renewal of their licenses and for a recalculation of dues at a fixed rate of $0.02 per minute, which some operators are willing to accept.

The letter emphasized that PTA’s insistence on penalties despite funds being held in escrow is unjustifiable and counterproductive.

Chairman Aminul Haque has assured the companies that their position will be heard. He confirmed that LDI representatives will be given the opportunity to present their case directly to the Standing Committee.