ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has distanced itself from the long-standing dispute concerning the nonpayment of Access Promotion Contribution (APC) dues amounting to Rs 72 billion payable to the Ministry of Information Technology and Telecom (MoITT).
The PTA said that it has no objection to the proposed settlement, subject to the federal government’s decision, as the dues are payable to the MoITT.
According to an official document, the PTA informed the MoITT that all LDI licensees have submitted their proposals in response to a directive issued the National Assembly’s Sub-Committee on Information Technology and Telecommunication.
Several options for settlement of outstanding amounts against LDI operators under study
The summary of submissions, shared with the ministry, outlines varying stances — with five LDI operators conditionally agreeing to pay the outstanding APC principal dues in structured installments or through escrow arrangements, while three operators have linked any payments strictly to court decisions.
The PTA noted that Telecard, WorldCall, Wise Communication, Multinet, and 4B Gentel have expressed willingness to settle the principal amounts through escrow or installment plans.
Telecard, for instance, has proposed to deposit about Rs.10 million monthly for 72 months into an escrow account jointly maintained with PTA, while WorldCall has offered to pay the remaining dues in 60 quarterly installments, excluding any Late Payment Additional Fee (LPAF), which it disputes.
Wise Communication Systems has proposed to clear the remaining Rs.385 million in 72 installments, maintaining that the LPAF claim — introduced in 2016 — cannot retroactively apply to a dispute dating back to 2005–2012. 4B Gentel has agreed to pay the balance Rs.514 million in 45 monthly installments and even offered post-dated cheques to demonstrate good faith.
Multinet, while contesting PTA’s calculations, has proposed an out-of-court comprehensive settlement involving mutual withdrawal of all pending cases and final closure of the APC dispute. On the other hand, Circlenet, Dancom, and REDtone Telecom have refused to accept PTA’s APC calculations, asserting that the matter should be left entirely to the courts. They argue that PTA’s methodology violated APC Rules and audit findings by the Auditor General of Pakistan (AGP), and that the principal amounts are legally untenable.
The PTA, in its feedback to MoITT, emphasized that all dues on the account of APC for USF are payable to the ministry, and the authority has repeatedly raised the issue with MoITT. It also referred to the ministry’s earlier letter of January 28, 2025, in which the MoITT had supported “conclusive facilitation to LDI licensees” to settle outstanding dues while considering their license renewal requests.
The authority further informed that following the Sindh High Court’s order dated November 27, 2024, the PTA had issued decisions on the APC and license renewal matters in July 2025, which are now under litigation. It confirmed that Wateen Telecom has already reached a partial settlement, agreeing to pay the principal dues while contesting the LPAF component — a proposal that PTA has accepted and which is now before the court.
“The PTA has no objection, subject to the federal government’s decision, as the APC for USF dues are payable to the MoITT,” the authority stated in its official communication.
The LDI license renewal and APC-for-USF settlement issue has lingered for over a decade, involving complex legal, financial, and regulatory dimensions. The latest proposals — shaped under parliamentary oversight — represent a step yet toward ending the impasse that has long hampered investment and policy stability in Pakistan’s international telecom segment.
The Parliamentary Subcommittee on Information Technology and Telecommunication, chaired by Convener Zulfiqar Ali, held an in-camera session on Wednesday to deliberate on the issue of LDI operators’ outstanding dues.
The meeting was also attended by the Law Secretary and the Additional Attorney General, who briefed members on the current status of the cases pending in court. Committee members emphasized the need for the government to facilitate early resolution of legal proceedings to prevent further delays in payment recovery.
Sources within the committee told reporters that LDI operators have submitted proposals to the subcommittee outlining possible payment mechanisms for the recovery of their dues.
The PTA, after holding multiple hearings, had issued determination orders against these operators. However, several companies have obtained stay orders from various courts, delaying enforcement actions.
Some lawmakers observed that the issue might have been resolved earlier if the Telecom Tribunal —intended to handle industry disputes — had been constituted.
Copyright Business Recorder, 2025
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