KARACHI: Pakistan is considering pursuing international arbitration in a bid to recoup $800 million it claims it is owed from the privatization of Pakistan Telecommunication Company Limited (PTCL).
“We are moving a summary to the federal government to take up the issue with the UAE government for the settlement of outstanding dues. Going to the international court of arbitration in London is the last option that Pakistan will exercise,” Irfan Ali, Pakistan privatization secretary told Arab News.
Pakistan privatized its national telecommunication company, PTCL in 2005, when Etisalat acquired a 26 percent stake in the company with management control for $2.6 billion.
However, Pakistan claims Etisalat withheld $800 million and the dispute has remained unresolved for over a decade. Etisalat was not immediately available for comment.
“We have been constantly in touch with Etisalat management but they failed to honor their commitment,” Ali added.
The privatization ministry is confident that it has a strong case against the Abu Dhabi-based headquartered phone company that also has operations elsewhere in the region.
“Based on correspondence with Etisalat and fulfilment of commitments made under the agreement, we think our case is very strong”, Ali said.
The row centers on the disputed transfer of a number of properties to the UAE phone company.
Prevaiz Iftikhar, a telecoms industry expert and consultant, believes that 90 percent of the properties in question have been transferred to the Etisalat.
“Pakistan’s case is very strong but I don’t think Pakistan will invoke the clause to recourse to international court of arbitration,” he added.
While there would be little negative fallout on the the telecoms sector if the government opts to pursue its claim through international arbitration, he said that such a move might strain relations between the two countries.
