PTCL privatization: talks with Etisalat under way for recovery of $800 million dues

Pakistan and Dubai-based Etisalat are holding talks to resolve much-awaited $800 million outstanding dues on account of Pakistan Telecommunication Company Limited (PTCL) privatization, as the government is facing challenge on external account, it was learnt.
Well-placed sources revealed to Business Recorder here on Tuesday that presently an Etisalat team is in Pakistan for talks on $800 million payment and outstanding properties. The government of Pakistan has constituted a committee consisting of secretary Privatization Commission, secretary Information Technology & Telecom and finance secretary to negotiate with Etisalat for recovery of $800 million.
Talking to Business Recorder, State Minister for Finance Rana M Afzal Khan said the government is short of dollars and, therefore, is trying to materialize the outstanding $800 million in the current fiscal year on account of privatization of 26 percent shares of the PTCL. He confirmed that the government has resumed talks with Etisalat and is engaged to make a way forward and materialize maximum of the outstanding amount.
He further said that Etisalat bid was greater by one billion dollar as compared to the second bidder and the government wants to settle the issue at the earliest. Earlier, former chairman Privatization Commission had submitted before a parliamentary panel that Pakistan will not go into arbitration against Dubai-based Etisalat for not releasing $800 million outstanding on account of the purchase of shares of the PTCL, as it would have negative consequences on bilateral relations between the two countries.
As per the Share Purchase Agreement, the payment of the balance $1.2 billion was contingent upon transfer of clean and clear titles of 100% properties by January 2008. In case of failure, valuations of the properties not transferred till January 2008 will be carried out by the both seller and the purchaser separately and higher of the two valuations will be considered for deduction from the balance installments.
At the time of privatization of the PTCL, there were a total of 3,248 properties to be mutated in favour of the PTCL. Of these, 3,215 have already been transferred leaving behind 33 outstanding properties and Etisalat has been informed that these are non-transferable.
The Privatization Commission has had the properties assessed by three valuers at different times. Hamid Mukhtar & Co was first engaged in 2009. Subsequently, National Bank of Pakistan and M/s Iqbal Nanjee & Co were tasked in 2011 and 2013 respectively. The $800 million in arrears from the privatization of the PTCL are not mentioned in 2016-17 & 2017-18 budget books, suggesting the government has little hope of recovering the money anytime soon.