Pakistan has decided not to pursue legal action to resolve a 16-year-old dispute with the United Arab Emirates (UAE) over $800 million in outstanding privatisation proceeds from the sale of a 26% stake in Pakistan Telecommunication Company Limited (PTCL).
Instead, officials hope for a breakthrough in the coming months.
Etisalat owes Pakistan $800 million as part of the $2.6 billion deal for PTCL shares made in July 2005. Since then, Etisalat has withheld $799.3 million, holding 407.8 million shares without making the due payments.
According to a news report, Privatisation Ministry Secretary Jawad Paul stated during a briefing to the Senate Standing Committee on Privatisation that litigation would not be pursued to resolve the nearly $800 million payment dispute with Etisalat, the UAE telecommunications company.
Senator Talal Chaudhry, chairing the meeting, highlighted that the PTCL sale agreement includes clauses favoring the buyer, preventing Pakistan from taking legal action. The privatisation secretary mentioned discrepancies over the number of properties transferred to PTCL, with Pakistan claiming 34 properties not transferred, while the UAE asserts the number is 94.
The meeting also covered the privatisation status of several institutions. Secretary Usman Bajwa briefed the committee on the active privatisation list, noting that PIA, Roosevelt Hotel, House Building Finance Company Limited (HBFCL), and First Women Bank Limited are expected to be privatised within the current fiscal year.
Bajwa highlighted that the sale of First Women Bank Limited is being pursued under the G2G Act with the UAE government, although a competitive bidding route might be required since the buying firm is not directly owned by the UAE government.
Committee members expressed dissatisfaction with the lack of major strategic asset sales over the past 15 years. The highest loss-making sector, the power sector, is not included in the first phase of privatisation. However, the privatization of four power generation companies will be initiated in a phased manner, focusing initially on efficient plants.
The committee was informed that Pakistan Steel Mills has been removed from the privatisation list and returned to the Ministry of Industries.
