Pakistan and Etisalat finally reach agreement: PTCL transfer in two weeks

The Pakistan government on Wednesday finally reached an agreement with Etisalat on all modalities and procedures for transferring Pakistan Telecommunication Company Limited (PTCL) management in two weeks.
The official announcement made here said: "On conclusion of the talks, both parties (Etisalat and GoP) committed themselves to the new partnership, which would further strengthen brotherly relationship between Pakistan and UAE."
Sources told Business Recorder that the agreement reached provides that the latter would make upfront payment of $1.4 billion, of the total $2.598 billion bid money for 26 percent PTCL shares.
They said: "Etisalat will make upfront payment on execution of the agreement for transfer of PTCL management that would be signed in two weeks, and pay the remaining bid money in 8 equal half-yearly instalments."
A seven-member Etisalat team had arrived in Islamabad on last Sunday to finalise the modalities with the government of Pakistan to seal the deal for PTCL.
The visiting team held talks with the Privatisation Commission team on daily basis for the last three days and decided all issues relating the deal by Wednesday evening. The two teams kept on getting instructions from their respective top management during the last phase of talks. Pakistan's team, led by Privatisation Minister Dr Abdul Hafeez Shaikh, remained in touch with President General Pervez Musharraf and Prime Minister Shaukat Aziz. Both leaders were informed on day-to-day developments.
During the talks, Hafeez was assisted by Privatisation Commission Secretary Tehsin Iqbal and consultants Aamer Qawi and Asad Sikandar Khel.
The Etisalat team left Islamabad by a special plan on Wednesday evening. On the conclusion of talks, Etisalat Telecom and the government of Pakistan made separate announcements.
The official announcement said: "Discussions were held over the last two days between the government of Pakistan and Etisalat, UAE, with regards to Pakistan Telecommunication Company Limited (PTCL) acquisition. In the light of the understanding reached earlier between the two sides they reached an agreement on all the modalities and procedures for the transfer of PTCL management in next couple of weeks."