Recovery of Rs78bn dues: NA panel rejects concessions for LDI telecom firms

ISLAMABAD: The National Assembly Standing Committee on Information Technology and Telecommunication recommended not to give any concession to Long Distance and International (LDI) telecom companies in the recovery of outstanding dues of around Rs78 billion including principle amount and late payment additional fee.

The committee which met with Syed Aminul Haque in the chair was also informed by the ministry that National Cyber Security Authority would be established after vetting from Law Division.

The parliamentary panel was informed that National Artificial Intelligence Policy is expected to be approved from the Cabinet by end February or early March.

Pakistan Telecommunication Authority (PTA) chairman informed the committee about the renewal of LDI licenses, that it remains unresolved because the license holders have not yet cleared certain payments from 2009 and 2011, amounting to Rs24 billion principle and around Rs54 billion LPAF.

He said that Sindh High Court (SHC) directed that the request for renewal shall be determined by the authority. The PTA has presented several proposals to address the issue; depositing the entire outstanding amount into an escrow account, recovering the dues in installments, or suspending the companies’ licenses.

The first option, a lump sum deposit into an escrow account, would require the companies to pay the entire amount upfront. The second option involves negotiating installment plans for repayment. The third and most drastic option, the suspension of LDI companies’ licenses, would have significant consequences on the telecommunications sector, especially ATM services. The PTA chairman warned that canceling the licenses could lead to up to 50 percent disruption in ATM services, as the banking infrastructure heavily relies on the LDI companies. The PTA chairman said that show cause notices would be issued to the LDI licensees and urged the committee for giving their input in taking any decision.

Member Committee Gohar Ali Khan raised concerns over being too lenient with the companies, as many of them generate revenue in foreign currencies. He stressed that installment-based repayment should be the last option, urging for a more decisive approach to ensure the recovery of the dues.

The committee chairman, concerned about the slow progress of resolving this issue, inquired whether the case could be moved to the Telecom Tribunal. However, officials from the Ministry of IT confirmed that the Telecom Tribunal has not yet been activated. The chairman has asked for a detailed report on its activation during the next meeting.

Committee chairman also expressed concern over the non-spending of Rs6 billion allocated for the Karachi IT Park project in the current financial year, the Personal Data Protection Bill, and the delay in the Artificial Intelligence Policy.

The committee discussed the budgetary proposals relating to Public Sector Development Program (PSDP) of the Ministry of Information Technology and its attached departments for the financial year 2025-26. After detailed deliberations, the committee endorsed the budgetary proposal amounting to Rs43,651.380 million for the next financial year 2025-26.

The committee was informed that to enhance connectivity and internet services in the country, the ministry is working on the National Fibrization Policy, which is expected to be completed within three to four months.

Once finalised, it will help assess the required funds and investment for the fibrization of telecom towers across the country. The committee recommended that approximately 10 per cent of the funds from USF should be allocated for fibrization. Additionally, the fibrization process should be completed as quickly as possible to ensure efficient internet services in the country and make it accessible to everyone.

The committee members made reservations about the broadband services of the Special Communication Organization (SCO) in AJK and Gilgit-Baltistan.

Copyright Business Recorder, 2025