Pakistan May Take Etisalat to International Court Over $800 Million PTCL Dues

Pakistan is contemplating taking telecom company Etisalat to an international court over an outstanding $800 million payment from the privatization of Pakistan Telecommunication Company Limited (PTCL), dating back to 2008, according to the Privatization Division. The government aims to recover the amount, plus damages and interest accrued since the unsolved issue arose.

The decision to pursue legal action was made following a joint Senate standing committees meeting on information technology and privatization. Etisalat acquired a 26% stake in PTCL and management control in 2005 for $2.59 billion, but Pakistan only received $1.76 billion, leaving the remainder withheld due to disputes over property transfers.

While 99% of PTCL's 3,246 properties have been transferred, 32 properties remain unresolved, which Etisalat cites as the reason for withholding payment. Multiple committees and negotiations have been held since 2015, but the dispute has remained unresolved for over two decades. The Senate committee recommended pursuing international arbitration under the share purchase agreement to recover the outstanding amount and its opportunity cost since 2008, as well as applicable damages.

The attorney general's office has been tasked with evaluating the strength of Pakistan's legal position and the likelihood of success before initiating formal action, which requires the prime minister's or federal government's approval.