PTCL Audit, $800m Dues and Merger Delays Dominate Senate 5G Briefing

A meeting of the Senate Standing Committee on Information Technology and Telecom, chaired by Senator Palwasha Khan, was convened to review preparations for Pakistan’s long-delayed 5G spectrum auction. But during the session, the spotlight shifted to unresolved financial disputes and governance issues surrounding Pakistan Telecommunication Company Limited (PTCL).

While briefing lawmakers on the 5G roadmap, officials from the Ministry of IT and the Pakistan Telecommunication Authority (PTA) outlined spectrum availability and auction timelines. However, committee members raised critical questions about PTCL’s financial obligations, audit compliance, and management practices.

Unpaid Dues and Audit Dispute

The committee chairman pressed officials on why PTCL had not undergone an independent audit despite clear Supreme Court directives. Audit authorities revealed that PTCL has resisted, arguing that Etisalat Group, its parent company, is not a public body. Senator Afnanullah enquired whether during PTCL’s 2005 privatisation, a special clause had exempted the company from such audits, to which audit officials said they would verify this. Senator Nadeem Bhutto reminded the meeting that the Supreme Court had already issued unambiguous instructions requiring PTCL to be audited by the Auditor General. The audit officials also maintained that any company with majority government shareholding was legally bound to be audited by the Auditor General.

In addition, Senator Afnanullah underscored that PTCL still owes the Government of Pakistan $800 million. Ministry of IT officials remarked that the company’s current management appears uninterested in resolving this longstanding dispute.

The $800 million in question was retained by Etisalat due to delays in the transfer of government-owned properties included in the 2005 deal. For nearly two decades, this stalemate has deprived the government of critical funds while leaving PTCL’s privatization incomplete.

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Merger Delays and Telecom Uncertainty

The session also turned to the pending merger between PTCL and Telenor Pakistan. PTA officials warned that a decision on telecom mergers was essential before the launch of the 5G auction. The standing committee has now summoned officials from the Competition Commission for a detailed briefing on the merger in its next session.

As Pakistan prepares for 5G, senators stressed that unresolved legacy issues with PTCL could erode investor confidence and slow sectoral growth. The committee urged the government to press Etisalat for settlement of dues, ensure compliance with audit directives, and expedite merger approvals to clear the path for innovation.