The government is weighing the option of taking Etisalat to international arbitration over the unpaid $800 million owed from the sale of Pakistan Telecommunication Company Limited (PTCL). The claim would also include the opportunity cost accumulated since 2008, along with applicable damages.
The issue came under discussion during a joint session of the Senate standing committees on information technology and privatisation on Tuesday. Members were told that the Office of the Attorney General for Pakistan (OAGP) had been instructed to promptly enforce the federal cabinet’s decision in accordance with Rule 24 of the Rules of Business, 1973.
However, senators belonging to both committees expressed concern over being denied access to the sale and purchase agreement (SPA) related to the transfer of a 26pc stake in PTCL, along with management control, to UAE-based Etisalat International Pakistan (EIP).
The joint meeting was chaired by Senator Dr Afnanullah Khan, head of the Senate Standing Committee on Privatisation, and Senator Palwasha Khan, chairperson of the Senate Standing Committee on Information Technology and Telecommunications.
Cabinet asks Attorney General’s office to prepare case for international arbitration
At the beginning of the meeting, IT Secretary Zarrar Hasham Khan told the committees that the matter involving Etisalat’s unpaid $800 million dues to the government was sensitive.
He asked the committee chairpersons to have all individuals without authorisation, including media personnel, leave the room. The meeting then continued behind closed doors.
Following the session, however, several senators voiced their frustration over not being given access to the details of the agreement governing PTCL’s sale.
“The strange part is that we parliamentarians cannot handle information, but it is safe with the bureaucrats,” one senator remarked.
“There has to be a law in this regard, and parliament should be informed about such sales of national assets rather than depending upon bureaucrats and officers,” the senator added.
According to a briefing prepared by the Ministry of Privatisation, a copy of which has been obtained by Dawn, the government sold a 26pc stake in PTCL, along with management control, to Etisalat in 2005 for $2.59 billion.
The government received $1.76 billion from the deal, while nearly $800 million remains outstanding.
The briefing explained that the remaining payment was tied to the transfer of PTCL properties to the new management. Although 99pc of the properties had been handed over, 32 out of a total of 3,246 properties were still awaiting transfer.
Etisalat, now operating under the name e&, has continued to withhold the outstanding $800 million over the failure to transfer these properties.
The ministry stated that since 2015, the government had taken several steps to settle post-privatisation matters. These included setting up multiple committees and holding negotiations with Etisalat in an effort to reach a mutually acceptable resolution.
Despite these efforts, the dispute remained unsettled. As a result, the government formed another committee in July 2026, led by the prime minister’s adviser on privatisation. The committee also included officials from the ministries of IT and law, along with representatives of the Office of the Attorney General for Pakistan (OAGP).
Given the dispute’s 20-year history, the committee proposed that Pakistan explore international arbitration under the SPA to recover the unpaid $800 million, in addition to the opportunity cost accrued since 2008 and any applicable damages.
It further advised the attorney general to evaluate the strength of Pakistan’s legal position, the likelihood of a successful outcome and the potential legal consequences.
“If merits of the case permit to pursue international arbitration, prior to issuance of the Notice of Intent to Etisalat, the Attorney General should seek approval of the prime minister or the federal government,” the Privatisation Ministry’s briefing stated.
The Privatisation Division told the committees that a summary on the matter had subsequently been forwarded to the federal cabinet.
