Govt Restarts Talks With Etisalat Over $800 Million Pending Dues Telecom News 2018
Pakistan and the
Dubai-based Etisalat have resumed talks to resolve the much-awaited $800
million in outstanding dues on account of privatization of Pakistan
Telecommunication Company Limited (PTCL).
Well
placed sources revealed that presently, an Etisalat team is in Pakistan
for talks over the recovery of the pending dues. The government of
Pakistan has constituted a committee consisting of Secretary
Privatization Commission, Secretary Information Technology & Telecom
and Finance Secretary to negotiate with Etisalat for recovery of the
amount.
Talking
to the correspondent, State Minister for Finance Rana M Afzal Khan said
that the government is short on dollars and therefore trying to
materialize the outstanding $800 million on account of privatization of
26 percent shares of PTCL in the current fiscal year. He confirmed that
the government has resumed talks with Etisalat and plans to move forward
and receive maximum of the outstanding amount.
: Pakistan Looking to Let Go of $800 Million Outstanding Amount from Etisalat
He
further said that Etisalat’s bid was one billion dollar higher compared
to the second bidder, and government wants to settle the issue at the
earliest.
Former
chairman, Privatization Commission (PC) had told a parliamentary panel
that Pakistan will not go into arbitration against the Dubai-based
Etisalat for not releasing $800 million outstanding on account of the
purchase of shares of PTCL, as it would have negative consequences on
bilateral relations between the two countries.
As
per the Share Purchase Agreement, the payment of the balance $1.2
billion was contingent upon transfer of clean and clear titles of 100%
properties by January 2008.
In
case of failure, valuations of the properties not transferred till
January 2008 will be carried out by both the Seller and the Purchaser
separately and higher of the two valuations will be considered for
deduction from the balance installments.
At
the time of privatization of PTCL, there were a total of 3,248
properties to be turned in favor of PTCL. Of these, 3,215 have already
been transferred leaving behind 33 outstanding properties and Etisalat
has been informed that these are non-transferable.
Privatization
Commission has had the properties assessed by three valuers at
different times. Hamid Mukhtar & Co was first engaged in 2009.
Subsequently, National Bank of Pakistan was tasked in 2011 and lastly by
M/s Iqbal Nanjee & Co in 2013.
The
$800 million in arrears from the privatization of PTCL are not
mentioned in 2016-17 & 2017-18 budget books, suggesting the
government has little hope of recovering the money anytime soon.
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