Revoking LDI licenses could cause major disruptions to ATM and mobile services, PTA warns

PTA Chairman highlights Rs. 74 billion in outstanding arrears and the impact on telecom and financial services

ISLAMABAD: The Chairman of the Pakistan Telecommunication Authority (PTA) informed the Senate Standing Committee on IT and Telecom on Monday about the significant arrears owed by Long-Distance International (LDI) companies.

Out of fifteen LDI companies, ten have paid a total of Rs. 10 billion, leaving Rs. 24 billion unpaid. The accumulating late fees have pushed the total arrears to Rs. 74 billion. The PTA Chairman cautioned that revoking the licenses of these companies could severely disrupt services, potentially affecting 50% of mobile communication and 40% of ATM transactions across the country.

The committee also addressed Pakistan’s heavy reliance on foreign fiber-optic infrastructure. PTA officials outlined the National Fiberization Policy, which aims to reduce this dependency and mitigate the pressure from external parties.

In addition, discussions touched on the Regulation of Artificial Intelligence Bill 2024. While ongoing consultations with stakeholders are underway, concerns were raised about the Ministry’s ability to regulate AI effectively, given its struggles in managing social media, particularly in tackling issues like fake news. One senator suggested that Pakistan could take a page from China’s regulatory approach by developing alternative domestic platforms.

The meeting also saw a debate on the recent appointment of the new Secretary for IT and Telecom. A senator questioned why a PhD-qualified candidate was bypassed in favor of someone with more experience. The Establishment Division clarified that practical experience was prioritized over academic qualifications, sparking further discussions on how to improve the sector, especially in areas like telecom infrastructure and IT exports.

Monitoring Desk
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