Govt Considers Arbitration to Recover $800 Million from Etisalat

ISLAMABAD: The Pakistani government is exploring international arbitration against Etisalat to recover an outstanding payment of $800 million related to the sale of the Pakistan Telecommunication Company Limited (PTCL). This decision comes after discussions held on Tuesday during a joint meeting of the Senate standing committees on information technology and privatisation.

During the meeting, officials revealed that the Office of the Attorney General for Pakistan (OAGP) has been instructed to expedite the implementation of the federal cabinet’s decision under Rule 24 of the Rules of Business, 1973. Senators expressed their astonishment at not being granted access to the sale purchase agreement concerning the divestment of 26% shares in PTCL, which included management control, to UAE-based Etisalat International Pakistan (EIP).

This situation raises significant concerns regarding transparency and accountability in the privatisation process, which could impact investor confidence and the broader economic landscape in Pakistan. The outstanding payment has been pending since 2008, and the government’s move to consider arbitration signals a serious commitment to resolving the issue.

Looking ahead, the government is expected to take further steps to ensure compliance with the cabinet’s directives, and additional meetings may be scheduled to discuss the implications of this arbitration process. The outcome could have lasting effects on Pakistan’s telecommunications sector and its relationship with foreign investors.