Transparency International urges recovery of $800 million PTCL dues from Etisalat, claims liability has grown to $6 billion

Transparency International Pakistan has called on the government to recover outstanding dues of $800 million from Etisalat linked to the privatisation of Pakistan Telecommunication Company Limited, stating that the liability has increased to around $6 billion over time, Business Recorder reported. 

In a letter to the Adviser to the Prime Minister on Privatisation, Muhammad Ali, the organisation urged authorities to direct the Pakistan Telecommunication Authority to initiate recovery proceedings.

TIP said the issue dates back to 2005 and had already been raised with the Supreme Court in 2011, when the outstanding amount was estimated at $1.6 billion. It stated that the amount has since grown further due to delays in settlement.

The organisation also highlighted the loss of a 2% penalty, which it estimated at $1.5 billion over seven years from 2005, along with the non-payment of over $800 million from the original transaction.

According to TIP, the failure to recover dues reflects regulatory gaps and has resulted in financial losses to the national exchequer. It said the matter should be addressed as part of ongoing engagement between Pakistan and the United Arab Emirates on PTCL-related issues.

The issue was discussed earlier this year during a meeting in Dubai between Deputy Prime Minister Ishaq Dar and senior officials from Abu Dhabi, including representatives associated with Etisalat.

TIP has requested a review of the case and called for directives to the PTA to recover the outstanding amount, which it said has accumulated over the past two decades.