Etisalat: govt contemplating finding middle ground to resolve payment issue

ISLAMABAD: The government is doubtful of getting the entire amount, as it is contemplating a middle ground to resolve the long-outstanding payment of $800 million against the UAE-based telecom company, Etisalat, on account of the Pakistan Telecommunication Comp-any Limited (PTCL)’s privatisation.

Minister of State Shaza Fatima Khawaja, while briefing the National Assembly Standing Committee on Information Technology and Telecommunication, which met with Aminul Haque in the chair, here on Tuesday, revealed that the Apex Committee of the Special Investment Facilitation Council (SIFC) has also deliberated upon the issue and on the directive of the prime minister, a high-level committee headed by the finance minister was constituted to find solution to this matter.

The minister said the issue is on valuation of some properties, where UAE-based company has given its value. The given value is also reasonable and the matter is close to be resolved.

“I cannot say how much Pakistan would get of the $800 million, but would get something (kuch na kuch tu mil jai ga) as the government is contemplating a middle ground to resolve the matter,” she added.

The committee expressed concern over the ongoing property dispute, stating that despite 18 years having passed, the issue remains unresolved. The ministry informed the committee that the prime minister has formed a committee led by the finance minister to address this issue, and that progress is being made towards a resolution. The committee awaits a report detailing any final decisions.

Furthermore, the ministry has been tasked with providing a comprehensive overview of all PTCL properties that have been leased or rented out at the next meeting. The committee directed PTCL to make its complaint management system effective and responsive, ensuring that the duration for addressing complaints does not exceed 6 to 12 hours, in order to prevent customer dissatisfaction and to enhance the company’s competitiveness in the market.

While considering the 5G auction and commercial launch of the services in the country, the committee observed that it is difficult to be launched by 2026. The Secretary IT and Telecom also failed to give a definite timeline for commercial launch of 5G services in the country, while saying that several aspects need to be considered before launching the services. He said that operators’ readiness for internal system of software would be required. Further, they would require to import technical equipment to upgrade their core network, but operators would accelerate work once they get the spectrum. Telecom companies have begun preparing for the upgrade to 5G, though the exact rollout timeline remains uncertain.

The committee raised serious concerns regarding the slow progress of the 5G spectrum auction and directed the Ministry to accelerate the process without delay. Recognizing the critical need for comprehensive reform in Telecom Sector, the Committee emphasized the importance of engaging all stakeholders in the processes of auction design, spectrum valuation, and the development of suitable 5G models. It is crucial that the auction is completed on schedule to facilitate the launch of 5G services by 2025.

The committee recommended the IT and Telecom minister to finalise the freelancer policy within 90 days.

The committee also discussed the implementation of the long-pending e-office initiative aimed at digitising government operations. The prime minister has instructed that starting October 1, all summaries must be processed through the e-office system. Ministries have been directed to expedite the full implementation of this system.

The committee expressed concern over the slow progress of the Islamabad IT Park project, stating that it was supposed to be completed by February 2025, but only 44 per cent of the work has been completed so far. At this pace, it seems unlikely that the remaining 56 per cent of the work will be finished. This project is fully funded by the Korean government, with both the contractor and consultant being Korean.

The feasibility report is prepared here and sent to the head office in Korea for approval, which takes time and causes delays in the project. The ministry has involved the Korean ambassador in this matter and has obtained approval to ensure that the project does not face further delays and is completed on time.

The committee directed that a third-party audit of the project be conducted, and the evaluation report be presented to the committee. Additionally, the committee issued directives concerning the Karachi IT Park, instructing the ministry to expedite construction work and implement a three-shift work schedule to ensure the project is completed by June 2026.

Copyright Business Recorder, 2024