State of Telecom Industry in Pakistan

We had written about the issues holding up $800 million payment from Etisalat. Pakistan’s Minister of Privatisation has stated that Pakistan will receive a payment of $800 million by the end of March from the UAE’s Etisalat for a stake in Pakistan Telecommunication Co (PTCL). Dawn reports:

In 2006, Etisalat, the Gulf Arab region’s second-largest telecom firm, signed an agreement to purchase a 26 per cent stake in PTCL for $2.6 billon, but so far only $1.4 billion has been paid, due to problems linked with a transfer of 3,000 real estate units.

Under the contract, the government agreed to transfer the properties before Etisalat made the full payment.

“We have agreed on a framework with Etisalat by which the transfer of $800 million will happen by the end of March … the property issues will be resolved soon,” Waqar Ahmed Khan told Reuters in an interview on Wednesday.

In December, Etisalat said the remaining $1.2 billion would be paid in equal instalments over a period of 4.5 years in consideration for “certain corresponding deliverables by the Pakistani counterpart.”