Government prepares arbitration path
The federal government is weighing international arbitration against Etisalat to recover about $800 million still unpaid from the sale of Pakistan Telecommunication Company Limited (PTCL), plus the opportunity cost of that money since 2008 and any damages allowed under the contract.
The issue came up on Tuesday at a joint sitting of the Senate standing committees on information technology and privatisation. Members were told that the Office of the Attorney General for Pakistan (OAGP)—the government’s top legal office—had been told to carry out a federal cabinet decision under Rule 24 of the Rules of Business, 1973, without delay.
The session was jointly led by Senator Dr Afnanullah Khan, who chairs the privatisation committee, and Senator Palwasha Khan, who chairs the IT and telecommunications committee.
Why the $800m is still unpaid
According to a Privatisation Ministry briefing shared with the committees, Pakistan sold 26 per cent of PTCL, with management control, to UAE-based Etisalat International Pakistan in 2005 for $2.59 billion. Of that, $1.76 billion was paid; roughly $800 million was not.
That final tranche was tied to handing over PTCL properties to the new managers. Officials said about 99 per cent of the properties have been transferred, but 32 of 3,246 sites remain outstanding. Etisalat, which now operates as e&, has kept the unpaid amount back because of those transfers.
The ministry said Islamabad has tried since 2015 to settle the post-privatisation dispute through committees and talks. The matter stayed unresolved. In July 2026 another committee was formed, led by the adviser to the prime minister on privatisation, with officials from the IT and law ministries and the attorney general’s office.
Given the dispute’s roughly two-decade span, that panel advised using international arbitration under the sale purchase agreement (SPA)—the contract that governed the PTCL sale—to chase the $800 million, its opportunity cost since 2008, and applicable damages. It also asked the attorney general to judge how strong Pakistan’s case is, the chances of winning, and the legal risks. If arbitration looks viable, the attorney general should get the prime minister’s or federal government’s approval before sending Etisalat a notice of intent. A summary on those lines has gone to the cabinet.
Senators shut out of key papers
IT Secretary Zarrar Hasham Khan told the committees the Etisalat item was sensitive and asked that unauthorised people, including media staff, leave. The rest of the discussion was held in camera—closed to the public.
Afterwards, some senators said they still had not seen the SPA for the PTCL deal. One remarked that parliamentarians seemed unable to “handle information” while bureaucrats could, and argued that law should ensure parliament is told when national assets are sold rather than leaving details with officers alone.
Timeline: what has happened so far
- 2005: Pakistan sells 26% of PTCL, with management control, to Etisalat for $2.59 billion; $1.76 billion is received.
- 2008: The period from which the government wants opportunity cost on the unpaid balance begins.
- Since 2015: Successive committees and negotiations fail to settle the property-transfer dispute.
- July 2026: A new committee under the privatisation adviser recommends international arbitration and a legal strength assessment.
- Tuesday (Senate briefing): Cabinet has directed the attorney general’s office to act; senators protest they were not shown the SPA.
Aasan alfaaz mein
Sarkar Etisalat se PTCL deal ka lagbhag 800 million dollar wasool karne ke liye international court jaane ka soch rahi hai. 2005 mein hissey beche gaye the, lekin yeh raqam abhi bhi baqi hai kyunke kuch properties transfer nahi huin. Agar yeh paise mil jayein to khazane mein bari madad ho sakti hai. Ab case taiyar ho raha hai; faisla baad mein hoga.
