The federal government is exploring legal options to recover approximately $800 million in outstanding payments from UAE-based telecom group Etisalat over its acquisition of a stake in Pakistan Telecommunication Company Limited (PTCL).
The issue was discussed at a joint meeting of the Senate Standing Committees on Information Technology and Privatisation on Tuesday. Members were informed that the Office of the Attorney General for Pakistan (OAGP) had been directed to implement the federal cabinet’s decision under Rule 24 of the Rules of Business, 1973, at the earliest.
However, senators from both committees expressed concern over being denied access to the sale and purchase agreement (SPA) under which Etisalat International Pakistan (EIP) acquired a 26 per cent stake in PTCL, along with management control.
The meeting was jointly chaired by Senator Dr Afnanullah Khan, chairman of the Senate Standing Committee on Privatisation, and Senator Palwasha Khan, chairperson of the Senate Standing Committee on Information Technology and Telecommunications.
At the beginning of the meeting, IT Secretary Zarrar Hasham Khan described the matter concerning Etisalat’s outstanding payment as sensitive and requested that unauthorised participants, including media representatives, leave the room. The proceedings were subsequently conducted in camera.
Following the meeting, several senators expressed frustration over the fact that even parliamentarians had not been provided with details of the PTCL privatisation agreement.
One senator questioned why government officials could access information that had been withheld from elected representatives, arguing that parliament should be kept informed about transactions involving national assets rather than relying solely on bureaucratic officials.
According to a briefing by the Privatisation Ministry, the government sold a 26 per cent stake in PTCL, along with management control, to Etisalat in 2005 for $2.59 billion.
Pakistan has received approximately $1.76 billion of the agreed amount, while nearly $800 million remains outstanding.
The payment dispute is linked to the transfer of PTCL properties to the new management. Although 99 per cent of the properties have been transferred, 32 out of a total of 3,246 properties remain unresolved.
Etisalat, now operating under the name e&, has withheld the outstanding payment over the non-transfer of these properties.
The Privatisation Ministry said successive governments had made efforts since 2015 to resolve the post-privatisation dispute, including establishing several committees and holding negotiations with Etisalat to reach an amicable settlement.
However, the matter remained unresolved, prompting the government to establish another committee in July 2026 under the leadership of the prime minister’s adviser on privatisation. Representatives from the ministries of information technology and law, along with the Office of the Attorney General, were also included.
Given the two-decade-long dispute, the committee recommended considering international arbitration under the provisions of the sale and purchase agreement to recover the outstanding $800 million.
It also proposed seeking compensation for the opportunity cost of the unpaid amount since 2008, along with any applicable damages.
The committee further recommended that the attorney general evaluate the strength of Pakistan’s legal position, the likelihood of success in arbitration and the potential legal implications.
The Privatisation Ministry’s briefing stated that if the legal assessment supported pursuing international arbitration, the attorney general should obtain approval from the prime minister or the federal government before issuing a formal notice of intent to Etisalat.
The Privatisation Division informed the Senate committees that a summary outlining the proposed course of action had subsequently been submitted to the federal cabinet.
