Pakistan, Etisalat to settle 15-years old row over PTCL
Aftab Ahmed
Pakistan and Etisalat International have agreed to hire international firms to evaluate properties to settle 15 years old outstanding dues of $ 800 million against PTCL sale proceeds to UAE’s Etisalat by transferring a $275 million payment by UAE telecom firm.
Federal Minister for Finance and revenue, Mr. Shaukat Tarin, held a virtual meeting with Mr. Hatem Dowidar, Group CEO Etisalat International at the Finance Division on Wednesday.
Federal Minister for IT and Telecommunication Syed Amin-ul-Haque, Federal Secretary Finance Division, Federal Secretary Information Technology, Secretary Privatization, and other senior officers also participated in the meeting.
In his opening remarks, the Finance Minister underscored the significance of resolving outstanding issues and moving ahead for a sustainable solution with all stakeholders on board. The Finance Minister further stated to set up a mechanism for a fair assessment of properties by hiring internationally renowned evaluation companies.
Mr. Hatem Dowidar, CEO Etisalat agreed to this proposal and affirmed to have an evaluation of properties completed within a couple of months.
Participation of Etisalat in a recent auction of spectrum in Pakistan affirms its commitment to Pakistan’s telecommunication sector. Both sides agreed to proceed ahead for resolution of all outstanding issues between Etisalat and the Privatization Commission in a spirit of goodwill.
In his concluding remarks, the Finance Minister said that the United Arab Emirates (UAE) is one of the major economic partners of Pakistan.
The expatriates from Pakistan settled in the UAE, contribute significantly through remittances to enhance foreign currency reserves.
Pakistan attaches great value to the brotherly relations with the UAE and intends to further strengthen business and trade linkages between the two countries, he added.
If this deal is sealed by both Government of Pakistan (GoP) and the UAE, then it would be “coincident” that Dr. Abdul Hafeez Sheikh, the then federal minister for the privatization of the Musharraf regime will complete the financial proceeds of privatized PTCL to M/s Etisalat of UAE after a lapse of 15 years, said an official of PC.
Earlier, Etisalat has made an offer to around $275 million to wind up the long-standing issue. Pakistan has previously offered Etisalat to deduct around $60 million out of the total $800 million. However, Etisalat has made a final counteroffer of $275 million.
Etisalat delegation comprising of top management held meetings with Federal Ministers and other key government stakeholders in Islamabad on Thursday to settle the issue.
The delegation led by Group CEO Etisalat Hatem Dowidar had also met with the former Federal Minister for Finance, Dr. Abdul Hafeez Shaikh, Federal Minister for Privatization, Muhammad Mian Soomro, and Chairman, Pakistan Telecommunication Authority (PTA), Maj Gen. (R) Amir Azeem Bajwa.
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During the meeting, former advisor Dr. Abdul Hafeez Shaikh had welcomed the delegation from Etisalat to Pakistan. Matters of mutual interest were discussed with a focus especially on Telecom Sector and its significance on the national economic growth.
Dr. Abdul Hafeez Shaikh, Federal Minister for Finance, commended the efforts of Etisalat and PTCL for their tremendous coordination and support in developing a strong infrastructure that would surely transform Pakistan into a digitalized economy. The Minister elaborated Prime Minister of Pakistan’s vision for a Digital Pakistan and highlighted its role in today’s digital world.
Federal Minister for Privatization, Muhammad Mian Soomro, during his meeting, appreciated their interest in Pakistan and contribution to the Telecom Sector. He emphasized that there are tremendous opportunities that should be availed. The per capita ratio of cellular phones in Pakistan is amongst the highest globally. Etisalat and Privatization teams resolved to expedite the pending issues and to have continued sittings.
Hatem Dowidar, the Group CEO, Etisalat, commended the efforts of the Government of Pakistan including the Ministry of Information Technology and Telecommunication, Ministry of Finance, and Ministry of Privatization. He further emphasized their role in re-shaping Pakistan’s Telecom Sector on the pattern of leading economies of the world.
