PC asked to collect $800m from Etisalat

Irshad Ansari April 22, 2010

ISLAMABAD: The National Assembly’s Standing Committee on Privatisation has directed the Privatisation Commission to resolve issues pertaining to the Pakistan Telecommunication Company Ltd.

Member of National Assembly Nawab Ali Wassan said this on Wednesday while chairing a meeting of the Standing Committee. He said that efforts should be made to get an overdue instalment of $800 million from Etisalat, which has a 26 per cent stake in the Pakistan Telecommunication Company Limited (PTCL).

Wassan called for solving the issue in an amicable manner and a line should be drawn to avoid any such mistakes in future transactions, according to a handout issued by the Privatisation Commission here. The Privatisation Commission has already transferred 94 per cent properties of the PTCL to Etisalat as per terms of the Sale Purchase Agreement (SPA).

The Standing Committee pointed out that payment of $50 million per annum as management fee for five years, linking the instalments with transfer of properties and a commitment not to issue any new licence for seven years were not wise decisions.

Earlier, making a presentation before the committee, Federal Minister for Privatisation Waqar Ahmed