Account of privatisation of PTCL: Etisalat: no progress on pending $800m

ISLAMABAD: A meeting of the Senate Standing Committee on Privatisation was informed that there has been no progress on pending US 800 million dollars from Etisalat on account of the privatisation of the Pakistan Telecommunication Company Limited.

This was stated by a senior official of the Privatisation Commission during a meeting of the Senate Standing Committee on Privatisation presided over by Senator Shamim Afridi on Thursday. Secretary Ministry of Privatisation said that although the present government has been striving to resolve the matter, it remained unresolved.

He added that $800 million has been pending on account of privatisation of the PTCL for the last 15 years because government was unable to transfer the PTCL properties to Etisalat as per agreement.

Govt, Etisalat agree to resolve outstanding issues

The government was required to transfer title of 384 PTCL properties to Etisalat, he added.

The secretary Ministry of Privatisation further stated that title of 33 properties is yet to be transferred to Etisalat. As a result, he said that the US 800 million dollars are pending even after 15 years against Etisalat.

After a briefing by the Ministry of Privatisation regarding privatisation of the Convention Centre, Islamabad, the meeting decided to summon the Ministry of Interior in the next meeting because the Convention Centre was Interior Division’s property and it was important to know his point of view.

The committee was further informed that a meeting was presided over by the Special Assistant to the Prime Minister (SAPM) on government effectiveness held on April 11, 2023, was informed that 12 potential investors were pre-qualified in the privatisation process of Jinnah Convention Center, Islamabad.

The committee was further informed that however, the CDA raised certain objections related to dome stricture and provision of amenities and prerequisites in its comments to the CCoP for initiation of the JCC transaction regarding conversion of parking areas to commercial as per the CDA regulations besides amendments in its regulations, bylaws.

The CDA further stated that it has a regulatory role in the transaction and the property is owned by the Ministry of Interior. The meeting was further informed that the CDA only manages it on behalf of the ministry.

He further informed that amendments in the building bylaws would be required for the transaction.

While discussing the privatisation of those entities, the process of whose was not completed, the committee was informed that since 1991 the Privatisation Commission has completed 178 transactions against the value of Rs 649,114 million.

The enterprises that awaited financial closure included, Pak China Fertilizer Company, Pak PVC Limited, Sindh Alkalis Limited, Balochistan Wheel Limited, Dandot Works of National Cement (PVT) Limited (Awan National Cement), Haripur Vegetable Oil Processing Industries (Friends Vegetable Ghee Mills), National Fibers Limited, Crescent Factories Vegetable Ghee Mills Industries, Mubarakpur Rice Mills, Fareed Tawakkal (Navadoor Motors), and PTCL. Regarding auctioning of one of two buildings in Washington owned by the Pakistan embassy, the committee was informed that the matter pertained to the Foreign Office and is not with the PC.

The committee has decided that it will summon representatives of the Ministry of Foreign Affairs for a detailed briefing in the next meeting.

Copyright Business Recorder, 2023