KARACHI: Pakistan and the UAE are moving closer to resolving more than a decade old dispute of $800 million privatization proceeds from Pakistan Telecommunication Company Limited (PTCL) after Etisalat responded with an offer curtailing around $500 million, officials confirmed on Friday.
“They (Etisalat) have sent a proposal of framework of settlement. There are many things including valuation and a non-binding offer. We are considering and would be responding in few days and after that negotiations will be held,” Secretary Privatization Rizwan Malik, told Arab News who decline to divulge the exact amount offered by the Etisalat.
However, an official familiar with the development informed that the amount offered by the Etisalat is around $300 million as the UAE telecom giant has deducted around $500 million in its offer.
To discuss the issue of Etisalat’s pending payment, an inter-ministerial meeting chaired by Pakistan’s de facto finance Minister Dr. Abdul Hafeez Shaikh was held on Thursday. Minister for Information Technology Khalid Maqbool Siddiqui was also present in the meeting.
“In the presence of all stakeholders .., secretary IT, secretary Privatization Commission and Secretary Finance, pending matters regarding the final settlement were discussed in detail,” a statement issued by the ministry of finance read.
“We want to move beyond the status quo maintained on the issue for over a decade and bring the matter to a final settlement beneficial for our country and our long-term business interest,” Shaikh was quoted as saying in the statement.
Shaikh directed the participants to come up with the final proposal for the resolution of the pending payment before the end of this month.
Senate’s standing committee on privatization, on Monday, will also convene a meeting of the concerned stakeholders to discuss the Etisalat’s offer, Mir Muhammad Yousaf Badini, chairman of the standing committee, told Arab News.
Shaikh had initially supervised the transaction structure of PTCL’s shares but left the government before its final agreement could be signed.
Pakistan had privatized its national telecommunication company in 2005 through bidding where UAE’s Etisalat emerged as the winner and acquired 26 percent stakes in PTCL with management control for $2.6 billion.
However, Etisalat withheld $800 million on the grounds that Pakistan had not yet mutated some 3,400 properties under the agreement with the government of Pakistan. Out of these properties, only 34 properties are disputed which are not transferable due to legal and security reasons.
Pakistan, UAE move closer to resolving Etisalat payment row
https://arab.news/2dsxa
Pakistan, UAE move closer to resolving Etisalat payment row
- UAE telecom giant offers to cut around $500 million from $800 million outstanding payment
- Want to move beyond the status quo maintained on the issue for over a decade, Pakistan PM’s aide says
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
