Etisalat Vs. Government Debate: Senate Committee Demands for Complete Agreement Details

The government was questioned by the Senate committee for the sale actions signed with the UAE-based firm Etisalat to privatize the state-run Pakistan Telecommunication Company Limited (PTCL).

Etisalat Vs. Government Debate: Senate Committee Demands for Complete Agreement Details

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“We want to study both the 2005 and 2008 (sale) agreements to pin point errors and give recommendations against individuals who made those errors.”

Informed Chairman of the Senate Committee on Information Technology, Senator Shahi Syed of ANP.

According to Senator Shahi Syed, gaps in the contracts instigated the country noteworthy losses. His comments came at a convention of the committee where adherents needed apprise on $800 million still not remunerated by Etisalat which attained 26pc monitoring portions of the giant, PTCL in 2005.

Etisalat was the utmost bidder, far above the allusion price of Rs 62 each share. It had paid straight $1.4 billion alongside of its total bid amount by 2006. Though it has paid just $400 million against the residual balance of $1.2 billion, which was to be waged in nine biannual payments beginning from September, 2006, and ending in September, 2010.

Muhammad Zubair, Chairman Privatization Commission informed the group that under the deal, payment of the balance $1.2 billion was subject to transferal of clean and strong titles of 100 percent possessions of PTCL by January 2008.

According to Muhammad Zubair out of the 3,248 properties, 3,212 had been transferred. Ever since June 2013, another 98 properties have been reassigned in the name of PTCL.

The Senate Committee came to know that Etisalat and the government of Pakistan had reached a considerate that the residual 33 properties could not be shifted. These belongings will be appraised and their expanses will be withheld from the unresolved $800 million.