Pakistan, UAE to settle $2.6bn Telecommunication deal
“The two countries have agreed a mechanism to settle the long-standing dispute and the remaining payment of over $800 million will be settled within weeks,” Dr Mirza Ikhtiar Baig, advisor to Pakistan’s Prime Minister on Textile and Chairman of Pak-UAE Business Council, told Khaleej Times in an interview on Wednesday. Etisalat signed an agreement in 2006 to buy 26 per cent stake in PTCL with management control for $2.6 billion. It paid $1.4 billion up front, as per the agreement, and remaining $1.2 billion were to be paid in six equal biannual instalments. More than $800 million is still pending as Pakistan government failed to transfer properties to PTCL due to various reasons, Khaleej Times said. Dr Baig said two sides appreciated and acknowledged need to expedite implementation of provision of legal framework under which PTCL privatization was undertaken including transfer of properties in name of PTCL to enable the parties to close the subject of pending payments. “We proposed an out of the box solution to this longstanding dispute and hopefully the issue will be settled soon,” he said. Dr Baig said government of Pakistan was unable to transfer about 136 properties to PTCL due to encroachments and legal cases. “Now, we have evaluated market price of disputed properties and this amount will be deducted from pending final payment of the $2.6 billion deal signed in 2006,” he added. To a question, Dr Baig said Pakistan has evaluated $70 million market price for disputed plots. “It has been decided in principle that agreed market price of disputed properties will be deducted from pending final payment.” He said Federal Board of Revenue in Pakistan will take up UAE request for exemption of its revenue/ income from withholding tax as per provisions of law. Copyright PPI (Pakistan Press International), 2012
“There is still a difference of opinion on evaluated market price of disputed properties. UAE side will soon submit its report and the issue will be resolved within weeks. There were only two main properties in major Pakistani cities in disputed list and the rest have already been cleared,” he said.