Pakistan considers arbitration against Etisalat over $800 million PTCL dispute

The Pakistani government is considering international arbitration against UAE-based telecommunications group Etisalat, now known as e&, to recover approximately $800 million. The funds are reportedly outstanding from the 2005 privatisation of Pakistan Telecommunication Company Limited (PTCL).

The dispute stems from the sale of a 26 percent stake and management control in PTCL for $2.59 billion. While the government has received roughly $1.76 billion, Etisalat has withheld the remaining balance due to unresolved property transfers. According to a Ministry of Privatisation briefing, 32 out of 3,246 properties covered in the agreement remain untransferred, despite the government stating that 99 percent of the properties have been handed over.

A joint meeting of the Senate standing committees on information technology and privatisation recently discussed the matter. The proposed arbitration could seek not only the unpaid purchase price but also compensation for the loss of use of those funds since 2008 and applicable damages. The Office of the Attorney General for Pakistan has been directed to implement federal cabinet decisions regarding the matter.