PTVC signs controversial deals with Indian TVs

Aftab Ahmed

Pakistan Television Corporation (PTVC) has made a controversial deal with Indian broadcasters for sports content bypassing the government.

The government had come to know that PTVC had signed agreements with Indian broadcasters in September last year without seeking approval from the cabinet.

Even PTVC had not taken up the matter with the Ministry of Information and Broadcasting to ink agreements. The government came to know when PTVC management approached that it could not transfer the amount into the account of Indian board casters into India due to an embargo imposed on payment.

It is also alarming for the government that PTVC signed a deal after Pakistan had imposed an embargo on payments to Indians into their accounts. Moreover, Pakistan had also imposed a ban on trade with India.  PTVC sought a no-objection certificate (NOC) from the government to relax the embargo on payment to Indian broadcasters into their accounts in India.

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PTV Sports is the top Sports Channel within the territory of Pakistan. The live content rights of sports are owned by the Indian broadcasters, including Sony Pictures Indian Limited (Ten-Sports) for the past.  Therefore, it becomes inevitable for Sports (PTV Network) to sub-license the rights of the parent broadcasters’ relevant territory.

The government of Pakistan imposed an embargo on payments to Indian accounts in India in August 2019. PTV inked agreements India and Sony Pictures Indian Limited (Ten-Sports) on 3rd September 24th October 2019.

PTV currently not only needs to clear pending payments to Indian broadcasters but also needs to ensure a regular section on the rights that PTV acquired before and after September. Therefore, PTV needs to acquire the ICC Rights (2019-2023) and payments, and the bank guarantees.

PTVC needs to make payments immediately for the following: （a) English Premier League 2019-2020 package (Star India).It will  pay USD 23 ＋ 10% tax (USD 258,500)  in two installments 129,250). （b) Pakistan versus Australia in Australia 2019-2020 (SPNI/ Ten Sports USD 340,000+10% tax (USD 374,000)(Annex-!).

The Ministry of commerce gives NOC for making payments to Indian Channels. This Ministry conveyed the request from PTVC and contracts to make payment to Indian parties.

Ministry of Commerce informed on July 25, 2020, that cabinet had imposed a ban on trade with India. Ministry of Commerce had notified it later. The subject agreements of PTVC were signed with Indian broadcasters after a trade ban with India. Hence, the cabinet can approve the payment.

Commerce Ministry had also advised consulting with the State Bank of Pakistan before submitting the cabinet’s summary.

The ministry had written a letter to the Ministry of Finance (IF wing). However, the finance ministry informed that it did not relate to IF Wing.

Subsequently, the ministry had written a letter to the State Bank of Pakistan to seek its consent in August this year. The State Bank of Pakistan replied that the commerce ministry could grant an exemption after the commerce’s ministry notified a ban. The federal government can give No-Objection Certificate (NOC) to make payment to Indian broadcasters.

It further said Foreign Exchange Operations Department (FEOD) SBP BSC could submit formal payment requests through an authorized dealer of foreign exchange (bank) along with all necessary documents securing NOC/approval of MOC and Federal Cabinet.

Now ministry concerned had sought formal approval of the Federal Cabinet for relaxation in an embargo on payments to Indian parties in India’s account. PTVC will make payment out of its own resources and subject clearance of payment procedure.

a)English Premier League 2019-2020 package (Star India).It proposed to pay USD 235 ＋ 10% tax (USD 258,500)  in two installments 129.250). Pakistan versus Australia in Australia 2019-2020(SPNI Ten Sports USD 340.000+ 10″% tax (USD 374,000).

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Ministry of Commerce has given no objection on payment to the Indian broadcasters subject to observation of payment procedure as advised by SBP. The PTVC had signed agreements with Indian companies.. So, the government will have to make the payment now to Indian broadcasters who have cricket global rights till 2023. Ministry of Information and Broadcasting has sought approval to relax the embargo on payment to Indian broadcasters.