ISLAMABAD: The Pakistan Telecommunication Authority (PTA) this week dismissed “fake news” reports about the potential closure of automated teller machines (ATMs) and telecommunication blackout in the country due to the non-renewal of licenses of long-distance international (LDI) operators.

The licenses of most of the 10 LDI operators in Pakistan, whose main function is to provide international incoming and outgoing telecom call services, will expire in August, local media reports said. Most of them have not yet paid the principal overdue for the Universal Ser­vice Fund (USF) in their 20-year license contract.

The PTA has asked the LDI operators to settle their debts to renew their licenses for the next 20 years. Media reports said the PTA expressed concern during a Friday meeting of the IT standing committee that the non-renewal of LDI licenses could potentially “significantly impact” the country’s telecom sector. It reportedly warned that around 50 percent of mobile traffic in Pakistan would be affected and 40 percent of ATMs would be out of service. 

“In response to the fake news circulating in the media about potential closure of ATMs, it is clarified that currently there is no issue non-availability/closure of LDI networks that may potentially impact IT or financial sector including ATM networks,” the PTA said in a post on Instagram. 

It said that the operations of the LDI operators whose licenses have expired have not been suspended or shut down.

Earlier this week, one of Pakistan’s most prominent payment system operators, 1LINK Limited, dismissed reports and speculation of a major cyberattack on ATMs and online banking across Pakistan, terming them as “fake rumors.”

A message circulated widely on WhatsApp and social media platforms in Pakistan last week said ATMs would not function for two to three days as a ransomware had targeted the machines. The message warned users against undertaking any online transactions.

In a press release last Sunday, 1LINK dismissed the widely circulated message as a “fake” one, urging people not to pay heed to it.