Steering Committee Dissolution Halts Dues Recovery From Telecom Companies in Pakistan

The Ministry of IT and Telecommunication once again hindered the recovery of billions of rupees owed by telecom companies in Pakistan. Now, you must be wondering why. The dissolution of the steering committee is responsible for overseeing the process.

According to the latest reports, the ministry retracted its letter dated July 23, which had reconstituted the steering committee, and issued a notification to that effect. Sources claim that the Ministry of IT aims to handle the collection of dues independently. The now-dissolved steering committee included representatives from the Ministry of IT, the Pakistan Telecommunication Authority (PTA), and Long Distance International (LDI) companies. Even though, three LDI companies have taken legal action regarding the expiry of their licenses.

Recovery of Billions from Telecom Companies in Pakistan Delayed!

Telecom companies owe Rs 24 billion in principal and Rs 54 billion in late payment surcharges. Initially, the IT Ministry directed the PTA to collect only 50% of the principal amount, allowing installment payments. However, the ministry later rejected this directive and restructured the steering committee. Even though, it has now withdrawn the restructuring letter.

On the other hand, the Pakistan Telecommunication Authority (PTA) responded to the National Accountability Bureau (NAB) concerning the non-recovery of billions of rupees from telecom companies. In its reply, the PTA mentioned a lack of policy directives from the federal government as the major reason for the delay in dues collection. PTA issued notices for license renewal and provided different payment options to LDI companies. However, the collections were delayed due to current court cases and the IT Ministry’s contradictory directives.

The PTA’s response to NAB highlighted that the confusion arose from the IT Ministry’s irregular stance on the collection of dues. The ministry’s pullback of the directive to collect dues from telecom firms has complicated the whole situation.

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