Pakistan has decided to pursue international arbitration against UAE-based telecommunications company Etisalat to recover around $800 million in outstanding proceeds from the privatisation of Pakistan Telecommunication Company Limited, known as PTCL.
Preparations for legal proceedings have been completed, a member of parliament told Arab News on Thursday. The parliamentary briefing at which the matter was discussed was held in camera, and the member spoke on condition of anonymity.
The dispute dates to 2005, when the government sold a twenty-six percent stake in PTCL, along with management control, to Etisalat International Pakistan for $2.59 billion. That sale, more than two decades ago, is the origin of the outstanding amount now at issue.
Pakistan received approximately $1.76 billion of the agreed price. Around $800 million remains unpaid, and it is that balance that Pakistan now seeks to recover through arbitration.
Etisalat, now known as e&, has withheld the payment because of the non-transfer of PTCL properties. Of the 3,246 properties covered by the transaction, 3,214 have been transferred and 32 remain untransferred, according to the figures reported.
The small number of properties still untransferred — thirty-two out of 3,246 — stands against the large sum withheld. The transfer of the overwhelming majority of the properties has been completed, while the remaining thirty-two form the basis of the dispute as described by the company.
The matter was discussed at a joint meeting of the Senate standing committees on information technology and privatisation on Tuesday. The meeting was jointly chaired by Senator Dr Afnanullah Khan, who chairs the Privatisation committee, and Senator Palwasha Khan, who chairs the IT and Telecommunications committee.
In July 2026, the government formed a committee headed by the prime minister’s adviser on privatisation. That committee recommended considering international arbitration under the sale and purchase agreement to recover the outstanding amount along with its opportunity cost since 2008 and applicable damages.
The recommendation therefore covers not only the outstanding $800 million but also the opportunity cost of that sum since 2008, together with applicable damages. The period since 2008 reflects the length of time over which the amount has remained unpaid.
The Office of the Attorney General for Pakistan was directed to implement the federal cabinet’s decision under Rule 24 of the Rules of Business, 1973, at the earliest. That direction places the implementation of the cabinet’s decision with the Attorney General’s office.
Before any notice of intent is issued, the Attorney General is to assess the legal strength of the case and seek approval of the prime minister or the federal government. That step must come first, and it means that the issuing of a notice depends on that assessment and on approval at the highest level.
No arbitration case has yet been filed, and no tribunal decision exists. That point must be stated clearly: the decision to pursue arbitration has been taken and preparations are complete, but proceedings have not yet begun, and recovery of the amount is not certain.
The account given here rests on the parliamentary briefing and on the statements reported from it. The member of parliament who spoke to Arab News did so on condition of anonymity, and the briefing itself was held in camera, so the details reported come through that channel.
The history of the transaction, from the 2005 sale of a twenty-six percent stake for $2.59 billion, through the receipt of $1.76 billion, to the outstanding $800 million, provides the background. The property issue, with 3,214 of 3,246 properties transferred, is the reason given by Etisalat for withholding payment.
The committee formed in July 2026, the recommendation for arbitration, the direction to the Attorney General, and the requirement for an assessment and for prime ministerial or federal government approval together describe the process now under way. The next step, the issuing of a notice of intent, awaits that assessment and approval.
Source: Arab News, Dawn
