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The MoU signed between PTA and the Transpa-rency International Pakistan is a welcome step towards maintaining transparency in the much-awaited third-generation spectrum license auction. Reportedly, TIPs role would be that of an observer, and it will monitor the auction process sans any remuneration.
This development will certainly go some way in assuaging transparency concerns raised in the past. To further strengthen the monitoring process, federal government has indicated that it will set up an Oversight Committee that will draw representations from academia, media, civil society and the NAB.
It has to be understood, though, that the TIPs scope is limited to monitoring whatever the laid down procedures and processes are going to be. In this transaction, the "auction design" itself will determine most of the qualitative and quantitative aspects of this auction. As highlighted in this space earlier, the auction consultants must design a competitive auction, by taking into account the interests of all the stakeholders - government, operators and future 3G customers.
The finance minister, who heads the Auction Supervisory Committee, has put his foot down now, and seems eager to complete this transaction before the curtain falls on this government in mid-March (or earlier). And why not! Pakistans fiscal and external accounts are aching for immediate inflows. Conducting this auction right can be a major source of reprieve here. Immediate relief to the exchequer, however, depends on what kind of payment terms are eventually offered to the successful bidders.
Reportedly, the Ministry of IT expects the 3G auction to generate foreign exchange of over one billion dollars in license fees and another one billion dollars in infrastructure development over the next couple of years, besides creating over 40,000 jobs.
A fresh push is evident, but the concerned authorities must realise that they are essentially fighting the timeline here. There is no point discussing the two abortive attempts that happened earlier this year - there is a need to move on, to expect results this time. Yet, a reading of the current affairs suggests that the schedule for next parliamentary elections could be announced any time. That renders the PTA Chairmans assertion to conclude the auction business by January 23 next year, just a pie in the sky.
Prime Minister also looks keen to finish this billion-dollar sale before dissolving the national assembly, to end on a relative high. But he must take the opposition on board, because they may not like the sound of this government bidding farewell with this big-ticket transaction, especially at the terms tail end. Past instances suggest that all it takes is a petitioner to knock on the courts doors, to force the governments urgency into a lull of sorts.
With such a factious political economy on their hand, is it of any worth for the authorities to press ahead with the auction? Or should they drop the idea of sailing against the winds and leave this belated affair to the next government?
After taking measures like engaging the TIP in the process, the authorities have built some amount of goodwill, which may help them to go all in. There has been a significant delay already, but this transaction is something which Pakistan really needs right now. So, the concerns of all stakeholders, as and when they arise from here on, should be addressed without letting the pre-auction process drag on.
Towards that end, there is already a strong constituency that the concerned authorities can readily rely on. The Senate and NA standing committees on Telecom & IT have been actively voicing their concerns over this auction, but their underlying objectives are also to maintain transparency and make this a successful transaction. Isn that what everyone should like to see?

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