Pakistan’s LDI Operators in Legal Limbo – Billions in Pending Dues Threaten License Renewals

Usama AnjumLast Updated: Mar 19, 2025

Pakistan’s Long Distance and International (LDI) operators are facing uncertainty as their license renewals remain stalled due to billions of rupees in outstanding dues. With over Rs. 57.2 billion unpaid, the Pakistan Telecommunication Authority (PTA) and the Ministry of IT & Telecom (MoITT) are under pressure to resolve the issue. The Sindh High Court’s decision and ongoing negotiations have further complicated the process, leaving key telecom players in legal and financial limbo.

PTA’s Position on LDI License Renewals

The PTA Chairman informed the Senate committee that the authority is conducting hearings for operators whose cases are still pending. He stated that each LDI operator will be given an opportunity to present its position individually to assess their willingness and ability to clear dues. PTA is considering two possible options to settle the issue. The first option involves requiring operators to pay the full principal amount upfront, clearing their dues in a single payment. The second option is to introduce a structured installment plan, allowing operators to pay their dues gradually over time. However, PTA has also confirmed that it is considering canceling licenses for companies that fail to comply with payment requirements, highlighting the seriousness of the situation.

During the Senate IT Committee meeting, the PTA Chairman revealed that 112 LDI-related cases are currently pending in courts, which has delayed the renewal process. He stated that the PTA will continue hearing each LDI operator individually to ensure that a fair decision is reached. The Committee Chairperson also demanded an explanation regarding the role of the former IT Secretary in managing past LDI license matters, questioning whether any legal action was taken against him. The committee further inquired if the cases had been referred to NAB or FIA for investigation, adding another layer of scrutiny to the situation.

The Committee Chairperson strongly criticized the behavior of the Federal IT Minister during the proceedings, calling it inappropriate and unacceptable. This highlights the tensions between regulatory authorities and lawmakers as they try to navigate the complexities of the telecom sector’s financial and legal challenges.

LDI License Renewal Status

The renewal of LDI licenses is a pressing issue, as several operators are due for license extensions between 2024 and 2026. So far, only four operators including Telenor, Orient, LinkDOTNet, and ADG have successfully renewed their licenses in 2024. Meanwhile, seven other LDI operators continue operations under High Court orders, including WorldCall, Wateen, Telecard, Dancom, Redtone, WiseComm, and CircleNet. Additionally, two operators, Multinet and 4B Gentle, are still awaiting renewal decisions for 2024, with their status remaining uncertain.

LDI operators have been divided into two major categories based on their willingness to clear outstanding dues.

Category 1:

Five operators—Telecard, Wateen Telecom, WorldCall Telecom, Wise Communication, and 4B Gentle—are ready to pay Rs. 8.2 billion in installments to settle their dues.

Category 2:

Four operators—Multinet, Redtone, Dancom, and CircleNet—have refused to pay the principal amount, which stands at Rs. 15.8 billion.

Adding to the financial burden, a Late Payment Additional Fee (LPAF) of Rs. 57.2 billion is pending against 10 LDI operators due to non-payment of APC for USF dues.

Legal Complications

The Sindh High Court issued a ruling on November 27, 2024, directing that no coercive action be taken against LDI operators until the PTA determines their renewal status. In response, the PTA requested MoITT’s guidance on outstanding dues and set a deadline of December 13, 2024, to resolve the matter.

MoITT, in a letter dated January 28, 2025, urged a balanced approach, supporting the renewal of licenses while facilitating a structured settlement of outstanding dues. However, the lack of a clear resolution has left the telecom sector in a state of uncertainty.

With legal hurdles and financial disputes delaying the renewal process, PTA is now working to conclude the matter within two months. The plan includes:

Adjudicating SCNs (Show Cause Notices) for five LDI licenses (WorldCall Telecom, Wateen Telecom, Telecard, Redtone, and Multinet) to assess their compliance.
Conducting individual hearings for seven LDI operators (WorldCall, Wateen Telecom, Telecard, Redtone, Dancom, WiseComm, and CircleNet) to determine their renewal eligibility.

The Future of LDI Operators – Uncertainty or Resolution?

As the telecom industry waits for a final decision, the delay in license renewals and mounting financial liabilities pose a significant challenge. The next two months will be critical, as PTA works toward resolving outstanding payments, enforcing regulations, and ensuring fair competition in the telecom sector. The outcome of these negotiations will not only impact LDI operators but also set a precedent for regulatory enforcement in Pakistan’s telecom industry. Whether operators comply with financial obligations or seek further legal cover remains to be seen. For now, the fate of the LDI license.