ISLAMABAD (The Thursday Times) — Pakistan is considering international arbitration against Etisalat to recover $800 million still owed from the 2005 sale of PTCL, along with the cost of waiting for it since 2008 and damages, a Senate meeting heard on Tuesday.
A joint meeting of the Senate committees on privatisation and IT was told that the attorney general’s office has been directed to carry out a federal cabinet decision on the matter at the earliest. The IT secretary called the subject sensitive, and the rest of the session was held behind closed doors.
According to a Privatisation Ministry briefing, Pakistan sold a 26% stake and management control of PTCL to Etisalat for $2.59 billion. It has received $1.76 billion, and about $800 million remains unpaid. Etisalat, now known as e&, tied the balance to the transfer of PTCL properties. The briefing said 99% have been transferred, with 32 of 3,246 still outstanding.
A committee set up in July under the prime minister’s privatisation adviser recommended arbitration after 20 years of dispute, as allowed under the sale agreement. The attorney general is to assess the case first, and would need approval from the prime minister or the federal government before sending Etisalat a notice of intent.
Senators complained they had not been given access to the sale agreement itself. There was no immediate comment from Etisalat.
