The government is unlikely to receive $800 million, budgeted for the current fiscal year, from Etisalat against privatisation of Pakistan Telecommunication Company (PTCL). The government had budgeted $800 million in the last fiscal year as well on account of privatisation proceeds of PTCL, but the amount did not materialise.
Sources said that every possible effort was made by the economic and political team of the government last fiscal year to ensure disbursement of outstanding dues on account of PTCL privatisation with the objective of reducing the fiscal deficit but without success.
An official of Finance Ministry said the matter also surfaced during talks with the International Monetary Fund (IMF) in 2010-11 and former Secretary, Finance, Salman Siddique, was also quoted as assuring the Fund that the government had made considerable progress on the issue with the United Arab Emirates (UAE) authorities, and $800 million would materialise by January 2011 - an amount that would help achieve the fiscal deficit target agreed with the Fund.
Now, Finance Secretary Dr Waqar Masood is being quoted as making a similar statement at a parliamentary forum. Waqar recently informed the Senate Standing Committee on Finance that he, along with Interior Minister Rehman Malik visited UAE and held discussions with top government officials for disbursement of the $800 withheld by the Etisalat for non transfer of properties to buyers, as agreed. Secretary Finance also assured the parliamentary body that the amount would materialise during the current fiscal year and would have no adverse impact on fiscal side.
Most of the properties of the company in Punjab and Sindh provinces have already been transferred to PTCL. However, about 100 properties are yet to be transferred and the first committee was constituted under the chairmanship of former Minister for Privatisation Waqar Ahmad. However, when he failed, the chairmanship of the committee was handed over to Interior Minister Rehman Malik, who has not so far been able to resolve the issue despite many rounds of talks with the UAE authorities.