TIP calls for urgent action on decades-old payment dispute, citing mounting losses and regulatory gaps
Transparency International Pakistan (TIP) has urged the government to initiate immediate recovery of long-pending dues linked to the privatisation of Pakistan Telecommunication Company Limited (PTCL), warning that the original liability of $800 million has ballooned to nearly $6 billion after years of delay.
In a letter addressed to the Adviser to the Prime Minister on Privatisation, TIP called for directives to the Pakistan Telecommunication Authority (PTA) to begin formal recovery proceedings against UAE-based telecom operator Etisalat.
The watchdog said the dispute dates back to the 2005 PTCL privatisation deal, under which a portion of the payment remains unpaid. It noted that the outstanding amount had already risen to $1.6 billion by 2011 and has since escalated significantly due to prolonged non-settlement and penalties.
TIP further highlighted that delays have resulted in additional financial losses, including an estimated $1.5 billion in penalties, raising concerns over regulatory enforcement and accountability.
The organisation warned that failure to recover the dues has caused substantial losses to the national exchequer and reflects systemic gaps in oversight. It also stressed that the matter should be addressed urgently, particularly as Pakistan navigates broader financial pressures and ongoing economic engagements with the United Arab Emirates.
The issue has resurfaced amid recent high-level discussions between Pakistani and UAE officials, where long-standing PTCL-related disputes were also on the agenda.
Analysts say the case underscores the importance of enforcing privatisation agreements and strengthening institutional mechanisms to safeguard national financial interests.
TIP has called for a comprehensive review and swift action, warning that continued delays could further inflate the liability and deepen fiscal challenges for the country.
