PML-N government has expressed hope of recovering $800 million from Etisalat- a telco from UAE. A team from Etisalat came to Islamabad, Pakistan and met the prime Minister Shahid Khaqan Abbasi yesterday. They discussed the remaining $800 million dues. Previously Etisalat had refused to repay loan it owed Pakistan on account of privatization proceeds of Pakistan Telecommunication Company Limited (PTCL). The Dispute Between Etisalat & Govt Might Resolve Soon.
Etisalat did not wanted to discuss the issue for two years but finally the company is ready to consider the valuation clause. Privatization minister, Etisalat will take about six to seven weeks to finalize the valuation of 33 outstanding properties.
The Dispute Between Etisalat & Govt Might Resolve Soon
Irfan Ali, Privatization secretary revealed that this is the second visit of the telecom giant Etisalat in last one month. The company bought 26% shares in PTCL at the price of $2.6 billion back in July 2005. Etisalat, UAE based firm refused to pay knowing that second lowest bid was $1.4 billion.
Hafeez Shaikh, Privatisation Minister has asked the telecom giant to make the initial payment of 1.4 billion and pay the left over amount in nine installments till September 2010.
Pakistan hopes to recovering $800 mn from Etisalat
Noticing that Etisalat has back tracked, Pakistan granted the shortfall notice to Etisalat in September 2015 advising the company that it cannot transfer remaining 33 properties until Etisalat pay the outstanding dues.
Secretary revealed that according to Pakistan’s assessment the value of these properties in not more than $88 million. However according to agreement, the highest value determined by any of two parties will be final price of the properties.
Aziz mentioned that they are finally satisfied that the finally matter will be resolved. Etisalat has requested government to grant another short notice with new terms and conditions. However privatization commission has refused to grant short notice as there is no logic in issuing another shortfall notice as there is no change in the status of properties and their valuations.