Etisalat telecom, the Middle East telecom firm which bought 26 percent shares of Pakistan Telecommunication Company Limited (PTCL) in March 2006, purchased 26 per cent stake in PTCL for $2.6 billion but withheld $800 million, due to non-receipt of all the properties identified in the agreement. At present, out of an estimated 3,384 properties, about 33 have still not been transferred to PTCL.
During the Pakistan Muslim League-N government, Privatisation Commission (PC) had prepared a summary which contained two options - (i) using government channels to convince the company to negotiate an adjustment to the deal by determining the market cost of those properties that have not been transferred and subtracting that from what is due; or (ii) invoke the arbitration clause.
In 2006, China Mobile had placed a bid of $1.4 billion while Etisalat had struck the deal for 26 per cent stake in the company against $2.6 billion.
In September 2015, Etisalat was informed that Pakistan was unable to transfer the remaining 33 properties and suggested negotiations on the value of the withheld properties and subtracting that from the outstanding amount of $800 million.
"A high-powered delegation from Etisalat recently met Prime Minister Imran Khan and showed its eagerness to close the deal. Another meeting with the Etisalat management is due later this month," sources said.