ISLAMABAD, Aug 5: The Privatization Commission (PC) has stopped Pakistan Telecommunication Company Limited (PTCL) from making any new investment or selling any thing till Etisalat of the United Arab Emirates (UAE) deposits its remaining amount of $2.25 billion to the government.
Informed sources told Dawn that the PTCL authorities on Friday gave a detailed presentation to the PC officials and informed them that the UAE company would deposit the remaining 90 per cent amount by the end of this month or early September to take over the management control of the PTCL.
However, the PC directed the PTCL high-ups that no new investment should be made or planned as it could have certain effect on the financial status of the company. On behalf of the Etisalat, the PTCL officials also assured the PC that there would be no retrenchment and that the existing 60,000 employees would be retained even after full and final payment was made.
Sources said that Etisalat has informed the government that a number of its projects were currently being completed in Sudan and many other West African countries where the PTCL’s technicians and other surplus staff could be sent.
The PC authorities were also informed that the PTCL management had signed agreements with all the 14 unions in favour of the privatization of the company to Etisalat. This agreement was signed with five unions on June 14, 2005, while agreements with remaining eight unions were singed on Wednesday (August 3).
The PC meeting was also told that Etisalat had short- and long-term expansion plans in Saudi Arabia and that efforts were still being made to buy some of the communication companies in Turkey.
The capacity of the PTCL which was 4 million lines previously, the PC was told, would be expanded to 5 million this year and to 7 million in 2006. Etisalat had earlier paid $250 million to the government for initially acquiring 10 per cent shares of the PTCL.
Etisalat officials have said that they would go for the expansion of the PTCL immediately after taking over its management control next month and that the company’s entire system would be automated preferably by early next year.
According to the previous expansion plan, the PTCL would have provided two million new fixed telephones to the subscribers by the end of this year. One million phones had already been provided and the remaining would be given in December under the Rs12 billion expansion plan which also included improvement in infrastructure at various places.
Sources said that Etisalat wanted to revamp PTCL’s entire infrastructure and had sought the government’s support in this behalf.
