ISLAMABAD: Transparency International Pakistan (TIP) has demanded that the federal government finally stop groveling and recover nearly $6 billion in outstanding liabilities from the UAE-based telecom giant, Etisalat.
The anti-corruption watchdog fired off a high-stakes letter to Muhammad Ali, the Adviser to the Prime Minister on Privatization, exposing a twenty-one-year history of bad faith and financial negligence. TIP asserts that what began as a stagnant $800 million debt from the 2005 privatization of Pakistan Telecommunication Company Limited (PTCL) has now ballooned into a staggering multi-billion dollar liability.
Etisalat PTCL Privatization Dues Dispute Spans Two Decades
The PTCL privatization remains one of the most lopsided deals in Pakistan’s history. Since 2005, Etisalat has comfortably operated Pakistan’s largest telecommunications infrastructure while stubbornly withholding the final payment. TIP highlights that the original outstanding amount was estimated at $1.6 billion when the matter reached the Supreme Court in 2011. Since then, the debt has grown exponentially.
TIP’s latest estimates include a 2% penalty for non-payment, which alone accounts for a $1.5 billion loss over just seven years. When factoring in interest, inflation, and the original $800 million principal, the total burden on the national exchequer now touches the $6 billion mark.
The UAE’s Diplomatic Stalling Tactics
Critics argue that the UAE government has leveraged its “brotherly” diplomatic status to shield Etisalat from its contractual obligations. While Pakistani officials frequently travel to Dubai to seek investment, they consistently fail to bring home the money Etisalat already owes the Pakistani people.
Earlier this year, Deputy Prime Minister Ishaq Dar met with senior Abu Dhabi officials to discuss the “PTCL issue.” However, TIP’s intervention suggests that these high-level meetings yield nothing but empty promises. Instead of a resolution, the UAE continues to use property transfer disputes as a convenient excuse to hijack billions of dollars that belong to the Pakistani taxpayer.
Regulatory Collapse: The PTA’s Toothless Watch
The report does not spare local authorities. TIP explicitly blamed the Pakistan Telecommunication Authority (PTA) and the Privatization Commission for their “regulatory lapses.” For two decades, these institutions have watched from the sidelines as a foreign entity exploited national assets without fulfilling its financial promises.
TIP now demands that the government direct the PTA to initiate immediate recovery proceedings. According to the watchdog, failure to recover the money owed by Etisalat amounts to a violation of national interest.
Pakistan at a Crossroads
In the face of an ongoing economic struggle, the return of the six billion dollars would change Pakistan’s economic fortune entirely. In its statement, TIP says that the “Islamabad Accord,” or indeed any deal involving the UAE in the future, must involve recovering the six billion dollars.
From Transparency International’s statement, it is clear that Pakistan should not continue to be an easy prey for any business organization seeking to maximize profits at the expense of the law. This would mean that the country cannot take care of its own interests and its national assets will be taken advantage of by those unwilling to pay their dues.
