Pakistan to Take Etisalat to International Court Over $800 Million PTCL Dues
The government of Pakistan is preparing to take its long-running payment dispute with UAE-based telecom giant Etisalat to international arbitration, seeking to recover the $800 million still outstanding from the privatization of Pakistan Telecommunication Company Limited (PTCL), along with damages and compensation for delayed payments dating back to 2008.
The proposed legal action signals a fresh attempt to settle a deal that has remained unresolved for more than two decades.
The issue came up during a joint meeting of Senate standing committees on information technology and privatization on Tuesday, where officials said the federal cabinet had instructed the Office of the Attorney General for Pakistan to proceed with its decision under Rule 24 of the Rules of Business, 1973.
Etisalat acquired a 26 percent stake in PTCL, along with management control, in 2005 for $2.59 billion. However, Pakistan received only $1.76 billion, with the remaining $800 million withheld over unresolved property transfers. Although 99 percent of PTCL’s 3,246 properties have been transferred, 32 remain outstanding, which Etisalat has cited as the reason for withholding the payment.
Pakistan Considers Legal Action Over PTCL Privatization Dispute
According to the Privatization Division’s briefing, the government has attempted to resolve the dispute through multiple committees and negotiations with Etisalat since 2015. However, the matter remained unsettled, leading to the formation of another committee in July 2026 under the prime minister’s adviser on privatization, with representatives from the IT and law ministries and the attorney general’s office.
Given the dispute’s nearly two decade history, the committee recommended pursuing international arbitration under the share purchase agreement to recover the outstanding amount, its opportunity cost since 2008, and applicable damages. It also asked the attorney general to evaluate the strength of Pakistan’s legal position, the likelihood of success, and the potential legal consequences before any formal action is initiated.
The committee further recommended obtaining the prime minister’s or federal government’s approval before issuing a Notice of Intent to Etisalat, provided the attorney general considers arbitration legally viable. The Privatization Division subsequently submitted a summary to the federal cabinet.
Senators Question Secrecy Surrounding PTCL Sale Agreement
The joint meeting, chaired by Senator Dr. Afnanullah Khan and Senator Palwasha Khan, also exposed concerns among lawmakers over their inability to access the original PTCL share purchase agreement. IT Secretary Zarrar Hasham Khan described the matter as sensitive and requested that unauthorized participants, including journalists, leave before the discussion continued behind closed doors.
Several senators later questioned why parliamentarians had not been given access to the agreement governing the transfer of national assets, while government officials retained access to its details. They called for greater parliamentary oversight of privatization transactions.
The Senate committees were informed that the attorney general’s office had been tasked with implementing the cabinet’s decision, while the government considers its next steps in recovering the unpaid $800 million from Etisalat.
The post Pakistan to Take Etisalat to International Court Over $800 Million PTCL Dues appeared first on ProPakistani.
