The government on Tuesday claimed that the long standing issue with Etisalat of pending $800 million on account Pakistan Telecommunication Company Limited (PTCL) privatisation is close to settlement. Railways Minister Saad Rafique claimed that he, as a member of Cabinet, has come to know that the government has discovered some 'crucial points' and the outstanding issue with Etisalat is close to settlement.
However, Finance Ministry accused Etisalat of using delaying tactics in the release of outstanding dues of $800 million on account of Pakistan Telecommunication Company Limited (PTCL) privatisation. The government of Pakistan conveyed it to Etisalat six months ago, that it has transferred all the properties on their name and the remaining 32 properties were non-transferable, said Waqar Masood Secretary Finance while briefing the Senate Standing Committee on Railways.
The committee met with Sardar Fateh Muhammad Muhammad Hassani in the chair to discuss the issue of Railways land given to PTCL/Etisalat at Chaman. "We have conveyed the final notice to Etisalat while saying that government of Pakistan has almost concluded the process," said Masood, adding that the latter's response is still awaited.
However, committee chairman said that there were major flaws in the agreement, and it is unlikely that the matter will be settled anytime soon. Even if ten properties remain non-transferable, Etislat would have a final word on evaluation of these properties and government of Pakistan will have to pay instead of receiving anything from the outstanding $800 million, he added.
Hassani further said that telephone exchanges set up 30 years ago, are now being closed one by one. The concerned authorities are closing all those telephone exchanges in rural areas whose revenues have decreased. He also criticised Finance Minister Ishaq Dar and said that the latter was openly talking on the Etisalat issue, but now has become silent. Why no accountability in the matter is being carried, the committee chairman asked.
The committee was informed that Secretary Privatisation in June 2011 regarding transfer of immovable properties in favour of PTCL at Chaman communicated that in 2005 federal government sold 26% shares of PTCL to M/s Etisalat of Abu Dhabi at a total bid price of $2.599 billion. As per the Share Sale Purchase Agreement, the federal government has to provide clean title of 3248 properties in the name of PTCL. Out of which one property relates to Ministry of Railways. Railways' property mentioned in the preceding paragraph is in fact the land measuring 5.68 acres at Chaman which was allegedly under illegal occupation of PTCL since 1972. PTCL constructed its exchange on this land and did not vacate the land in spite of constant pursuance by Railways. However, PTCL authorities had requested to sell or lease out the land to them on a long-term basis.
In August 2011, Secretary Finance conveyed the commitment that on behalf of the government of Pakistan it will pay Pakistan Railways the values of its properties transferred in the name of PTCL based on the assessment of such values by independent evaluators.
Accordingly, Ministry of Railways communicated the orders of Secretary/Chairman Railways to transfer the title of the said land in favour of PTCL in accordance with the undertaking of the Secretary Finance. Meanwhile, Divisional Assessment Committee (DAC) Pakistan Railways Quetta evaluated the cost of land at the rate of Rs 20,000 per square feet and total cost of land comes to Rs 4,954 million.
According to evaluation of land by Deputy Commissioner Killa Abdullah, the price of land ranges between Rs 15,000/- to Rs 20,000/- per square feet. DAC also worked out occupation charges of land to be recovered from PTCL amounting to Rs 7, 750.47 million. Hence total due amount to be received by Pakistan Railways comes to Rs 12, 704.47 million.
Subsequently, it was ascertained that actual railway land under the occupation of PTCL at Chaman is 6.03 acres instead of 5.68 acres. Ministry of Railways made a last reference in September 2015 to Ministry of Finance with a request to make payment to Pakistan Railways as per their commitment on account of value of its property measuring 6.03 acres at Chamman transferred to PTCL. In response to which, Secretary Finance re-affirmed government's commitment that settlement will take place once the purported dues are received from M/s Etisalat.
The committee requested the Supreme Court of Pakistan for an early decision in the Royal Palm Golf Country Club case. Railways minister informed the committee that a feasibility study of main line-II (ML-2) has been awarded to M/s ILF at the tender cost of Rs 186.659 million in February. The nominated consultant has been asked to immediately start the feasibility to be completed within eight months. The Minister said that Frontier Works Organisation (FWO) is trying to arrange foreign investors for the Quetta-Taftan line on BoT basis. Regarding the sale of scrap, the Minister said that market is down for the last 5 to 6 months and tenders were cancelled after the imposition of 17 percent GST. He directed the Railways officials to carry out a complete evaluation of the scrap in the entire country.