Prime Minister, Syed Yousuf Raza Gilani, has constituted a third committee, now under the chairmanship of Finance Minister Dr Abdul Hafeez Shaikh, to resolve dispute with M/s Etisalat, which is still withholding $800 million government dues.
Official documents available with Business Recorder suggest that while dilating upon the implementation status of cabinet decision pertaining to the issuance of 3G Spectrum and LDI licence to M/s China Mobile Pakistan Limited (known as Zong) and resolving the real estate issues with M/s Etisalat of UAE, the cabinet reconstituted a committee comprising Minister for Finance (convenor), Minister for Water and Power, Minister for Privatisation and Minister for Petroleum and Natural Resources to discuss and finalise the report within 10-12 days and present in the next cabinet meeting.
Budget documents indicate that the government is expecting Rs 70.4 billion from privatisation proceeds, which means all out efforts will be made to resolve the issuance of the 3G licence to China Mobile as well as real estate issues with M/s Etisalat, 26 per cent shareholder in PTCL.
The sources said most of the properties in Punjab and Sindh have already been transferred to PTCL; however, about 100 properties'' are yet to be transferred out of 3000. These properties were basically given by the land owners voluntarily to the PTCL to install poles for telephone connections.
First committee had been constituted under the chairmanship of former Minister for Privatisation, Senator Waqar Ahmad. However, when he failed to achieve the goal, the chairmanship of the committee was handed over to the Interior Minister, Rehman Malik who was also unsuccessful in resolving the issue.
The sources said, Minister of Information Technology (MoIT) had proposed that: (i) the GoP may take up the issue with Etisalat for seeking one-time consent for issuance of LDI licence in favour of China Mobile PAK; and (ii) if deemed necessary, fresh policy directive for placing a moratorium on issuance of fixed line (LL and LDI) and cellular licences for the remaining time of commitment with Etisalat may be issued.
"Pakistan had approached UAE at the highest level for resolution of issues which are hindering payment of $800 million," the sources said adding that President Asif Ali Zardari was personally making efforts for early payment of $800 million due from M/s Etisalat.
However, another key issue is LDI/ 3G licence to China mobile (known as Zong) as M/s Etisalat threatened to approach international court if the GoP violates its agreement. The government had made a commitment with Estisalat that it would not issue any new LDI licence for seven years. This restriction will be fulfilled after a couple of years.
In August, 2010 Ministry of Information Technology, in its summary to the Cabinet, had said that Etisalat International had agitated that (in the light of SPA schedule-6 clause-g), issuance of subject licence to China Mobile Pak would be violative of the SPA concluded between the GoP and the company on March 12, 2006. The issuance of licence was approved by the Cabinet on September 24, 2008, but the decision has not been implemented thus far due to Etisalat''s concerns.
The committee held only one meeting after which the issue had been handed over to the Minister for Interior Rehman Malik. Malik held a couple of meetings before he finalised recommendations for the President who is actively pursuing the case. The committee has also been given the task to resolve the LDI licence, auction 3G spectrum in consultation with the stakeholders and the concerned ministries.