United Arab Emirates and Pakistan will find an amicable solution within weeks to a standoff on final payment of a $2.6 billion telecom deal under which Emirates Telecommunication Corporation Etisalat, acquired a 26 per cent stake in Pakistan Telecommunication Company Limited (PTCL).
“The two countries have agreed a mechanism to settle the long-standing dispute and the remaining payment of over $800 million,” Adviser to Prime Minister Yousaf Raza Gilani on Textile Dr Mirza Ikhtiar Baig told Khaleej Times in an interview on Wednesday.
Etisalat 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 reported.
Dr Baig said the two sides appreciated and acknowledged the need to expedite implementation of provision of legal framework under which PTCL privatisation was undertaken including transfer of properties in name of PTCL to enable the parties to close the subject of pending payments.
The 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.
“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.
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.
Published in The Express Tribune, March 1st, 2012.
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Adviser to Prime Minister Yousaf Raza Gilani on Textile Dr Mirza Ikhtiar Baig told Khaleej Times in an interview talks about Telecommunication contracts and disputes!!!! Wow, talk about 'square pegs and round holes' ----- no wonder things are the way they are here.
Yeah what hasn't been dealt with in years will be fixed in a matter of weeks.
How can a federal Goverment not vacate a "enroached "property unless the the enroaher is a goverment minister or another high up..this will ruin our ability to conduct International mergers etc if this state of affairs continues...