PTA Seeks to End PKR 72 Billion LDI Dispute, Sends Settlement Plan to IT Ministry

In a significant development for Pakistan’s telecom sector, the Pakistan Telecommunication Authority (PTA) has taken a major step to resolve the long-standing PKR 72 billion LDI dispute over Access Promotion Contribution (APC) dues payable to the Universal Service Fund (USF). The regulator has forwarded detailed settlement proposals from Long Distance International (LDI) operators to the Ministry of Information Technology and Telecommunication (MoITT) in a bid to break years of regulatory deadlock.

The move follows directives from a National Assembly subcommittee, which tasked the PTA with securing industry-wide input on how to settle both the APC-for-USF liabilities and the pending LDI license renewals, issues that have entangled Pakistan’s international telecom operators in litigation for more than a decade.

Diverging Proposals: From Installments to Court-Linked Conditions

According to an official communication seen by DawnTech News, the PTA informed the IT Ministry that all eight LDI licensees had submitted their proposals, though their stances vary significantly.

Five operators—Telecard, WorldCall, Wise Communication Systems, Multinet, and 4B Gentel have conditionally agreed to clear the disputed APC principal amounts through structured installment plans or escrow mechanisms.

• Telecard proposed to deposit Rs 10 million per month for 72 months into a jointly operated escrow account with the PTA.

• WorldCall offered to pay its remaining dues in 60 quarterly installments, excluding the Late Payment Additional Fee (LPAF), which it disputes.

• Wise Communication Systems committed to clearing Rs 385 million in 72 installments, while arguing that the LPAF clause—introduced in 2016—cannot apply to disputes covering 2005–2012.

• 4B Gentel agreed to pay Rs 514 million over 45 months, even offering post-dated cheques to prove its sincerity.

• Multinet proposed a broader out-of-court settlement, suggesting mutual withdrawal of all cases and a final closure of the APC matter, though it continues to contest PTA’s calculation of outstanding dues.

In contrast, Circlenet, Dancom, and REDtone Telecom have refused to accept PTA’s APC assessments altogether. They maintain that the issue should be decided solely by the courts, arguing that the PTA’s computation methods breached the APC Rules and contradicted audit findings by the Auditor General of Pakistan (AGP).

“These so-called principal dues are not legally sustainable,” one operator stated in its submission, claiming the regulator’s formula was inconsistent with the original APC mechanism designed to promote rural connectivity.

PTA Refers Matter Back to Federal Government

In its summary to the MoITT, the PTA reaffirmed that all dues collected under APC-for-USF are payable directly to the federal government through the ministry. The authority highlighted its multiple communications urging the ministry to take policy-level action to facilitate a negotiated resolution.

PTA also reminded MoITT of its own letter from January 28, 2025, in which the ministry had supported a “conclusive facilitation” for LDI licensees, suggesting a structured settlement model that could align with ongoing license renewal requests.

Following a Sindh High Court order dated November 27, 2024, PTA had already issued determinations on both APC liabilities and license renewals in July 2025, decisions that are now being contested in various courts.

The authority confirmed that Wateen Telecom has already reached a partial settlement, agreeing to pay its principal dues while continuing to dispute the LPAF component. PTA has accepted this arrangement, subject to court approval, describing it as a possible model for broader reconciliation across the sector.

“PTA has no objection, subject to the federal government’s decision, as the APC-for-USF dues are payable to MoITT,” the regulator stated in its official communication.

A Decade-Long Stalemate Nears Turning Point

The APC-for-USF mechanism was originally introduced to support rural telecom development by requiring LDI operators—who handle international calls—to contribute a share of their revenues to the Universal Service Fund. However, disagreements over audit results, retrospective claims, and the later introduction of LPAF penalties turned the mechanism into one of Pakistan’s longest-running telecom disputes.

The accumulated Rs 72 billion now represents a financial and legal bottleneck that has delayed LDI license renewals, restricted new foreign investment, and raised concerns about Pakistan’s regulatory consistency in international telecom markets.

Industry experts say that resolving the APC impasse could unlock much-needed clarity for investors and operators alike.
“Uncertainty over APC dues and license renewals has been a major drag on Pakistan’s telecom investment climate,” said a senior industry analyst familiar with the matter. “If this settlement moves forward, it could signal regulatory maturity and a long-overdue policy reset.”

What Happens Next

The MoITT is expected to review the PTA’s summary and the individual LDI proposals before making its recommendations to the federal cabinet. A high-level decision will likely determine whether the government opts for a negotiated settlement, a case-by-case resolution, or a continued reliance on judicial proceedings.

Either way, the submission of settlement proposals marks the most concrete progress yet toward ending a dispute that has clouded Pakistan’s international telecom landscape for over a decade.

As one senior telecom official put it:

This is not just about Rs 72 billion, it’s about restoring confidence in regulatory predictability, and showing that Pakistan can resolve complex legacy issues without stifling innovation or investment.

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