Pakistan Seeks Middle Ground to Resolve Etisalat Dispute

The Pakistani government is actively working to resolve a long-standing payment dispute with Etisalat, a UAE-based telecom company. The government is seeking a middle ground solution to recover the outstanding amount of $800 million owed by Etisalat on account of the privatization of the Pakistan Telecommunication Company Limited (PTCL).

Minister of State Shaza Fatima Khawaja informed the National Assembly Standing Committee on Information Technology and Telecommunication that the Apex Committee of the Special Investment Facilitation Council (SIFC) has deliberated on the issue and, upon the prime minister’s directive, a high-level committee headed by the finance minister has been formed to address it.

The main point of contention lies in the valuation of certain properties related to the privatization deal. Etisalat has proposed a value that the government is considering reasonable. While the government may not recover the full $800 million, it is hopeful of reaching a mutually agreeable solution.

In addition to the Etisalat payment issue, the committee also discussed other pressing telecom-related matters. The PTA urged the government to expedite the 5G spectrum auction, which has been delayed. The committee emphasized the importance of completing the auction on schedule to facilitate the timely launch of 5G services in Pakistan.

The committee also raised concerns about the slow progress of the Islamabad IT Park project and directed the ministry to expedite construction work. The project is expected to be completed by June 2026, but the current pace of work indicates a potential delay.

Furthermore, the committee stressed the need for comprehensive reforms in the telecom sector and urged the government to engage all stakeholders in the process of auction design, spectrum valuation, and 5G model development.

Overall, the meeting highlighted the importance of resolving outstanding issues and promoting the development of the telecom sector in Pakistan.