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 finmin meets venture capital firm Gobi as $50 million tech fund proposed
- Techxila Fund II aims to empower Pakistani startups in fintech, e-commerce, logistics, supply chain sectors
- Finance Minister Muhammad Aurangzeb reaffirms commitment to strengthen venture capital landscape
KARACHI: Finance Minister Muhammad Aurangzeb met a delegation of the global venture capital firm Gobi Partners on Thursday during which it proposed a $50 million tech fund to empower Pakistani startups, the Finance Division said.
Gobi Partners is a prominent Malaysia-based venture capital firm. Founded in 2002, the firm says it has more than $1.6 billion in assets under management and invested in over 400 companies across 16 locations in Asia.
Aurangzeb held a meeting with a high-level Gobi Partners delegation, which included its Chairman Thomas Tsao, Managing Partner Naiel Ikram and Investment Associate Abraiz Abdullah at the Finance Division.
The delegation briefed the finance minister on Gobi’s regional footprint and its investments in Pakistan through the Techxila Fund I, which was launched in 2020 and has supported startups across fintech, e-commerce, and digital infrastructure, the Finance Division said.
“Gobi Partners also shared a plan regarding Techxila Fund II, with a proposed target size of USD 50 million, aimed at investing in high-potential sectors including fintech, logistics, health technology, and software services,” the Finance Division said.
“The firm expressed its intention to anchor the fund with its own capital and mobilize participation from domestic and international institutional investors.”
The Techxila Fund II aims to empower startups in Pakistan as well, focusing on fintech, e-commerce, logistics and supply chain and health tech, according to an earlier statement from Gobi Partners.
Aurangzeb underscored the Pakistani government’s commitment to strengthening its venture capital and innovation landscape, saying it is a part of its broader strategy to promote private sector-led growth, deepen financial markets and support technology-driven economic diversification.
The delegation highlighted the importance of further strengthening the enabling framework for venture capital in Pakistan, the Finance Division said.
“In this regard, they suggested encouraging greater participation by domestic financial institutions in venture capital and private equity, as well as considering tax pass-through status for venture capital and private equity fund investments to facilitate local investor participation,” it added.
The meeting takes place amid Pakistan’s aggressive attempts to increase foreign investment in recent years. The South Asian country has aimed to consolidate recent economic gains such as lower inflation and higher foreign exchange as it targets sustainable economic growth.
