Dubai:
Deputy Prime Minister and Foreign Minister Ishaq Dar has arrived in Dubai on an official visit aimed at breaking a long-running financial deadlock with the United Arab Emirates’ telecom giant Etisalat, involving nearly $800 million linked to the privatisation of Pakistan Telecommunication Company Limited (PTCL).
According to Pakistan’s Ministry of Foreign Affairs, Dar travelled directly from Davos, Switzerland, and is scheduled to hold meetings with Etisalat’s senior management during his stay. The talks are expected to focus on unlocking funds withheld since the landmark 2006 PTCL privatisation deal.
A Dispute Nearly Two Decades Old
The standoff dates back to Pakistan’s decision to sell a 26 per cent stake and management control of PTCL to Etisalat International Pakistan for $2.6 billion. While most of the payment was made, Etisalat withheld roughly $799 million, citing unresolved issues related to the transfer of PTCL properties promised under the agreement.
Under the deal, the government committed to transferring 3,384 PTCL properties to the buyer. However, officials later acknowledged that only 3,248 properties were available, while 38 sites could not be transferred at all, creating a shortfall that stalled final settlement.
Renewed Push for Resolution
Despite several rounds of negotiations over the years, the issue remained unresolved. In 2025, in-camera discussions were held to explore possible compromises, but no breakthrough was announced.
Officials said the current talks signal a renewed push by Islamabad to bring closure to the long-standing dispute through dialogue rather than litigation. Pakistan has consistently ruled out pursuing international legal proceedings, preferring a negotiated settlement with Etisalat.
Economic and Diplomatic Stakes
The government views resolution of the PTCL dispute as critical not only for recovering long-awaited funds but also for reinforcing economic and investment ties with the UAE, one of Pakistan’s key regional partners.
Analysts say a settlement could improve investor confidence and remove a major legacy issue from Pakistan’s privatisation history, while opening the door for deeper cooperation in the telecom and digital sectors.
