KARACHI, June 30: The UAE-based Etisalat, which has bought 26 per cent shares of Pakistan Telecommunication Company Ltd for $2.598 billion, has completed the payment of first tranche worth around $260 million.

A source at the state-run National Bank told Dawn that NBP had received $220 million from the UAE-based buyer of PTCL on Wednesday and credited the amount to the State Bank’s account on Thursday. He explained that the company had already paid $40 million as earnest money. “So it has completed the payment of first tranche of a little less than $260 million or 10 per cent of the total bid amount of $2.6 billion.”

Chief spokesman for the SBP Syed Wasimuddin confirmed that the SBP had received the first tranche of 10 per cent of PTCL privatization from Etisalat.

The company is supposed to pay the remaining 90 per cent of the bid money for PTCL within 60 days from the date of approval of its bid.

A huge inflow of around $2.6 billion through the privatization of PTCL would help Pakistan keep its balance of payments healthy despite a fast-growing trade deficit on the back of faster-than-anticipated growth in the overall economy.

APP adds: Etisalat chief executive officer Obaid Saeed bin Meshar has said the new PTCL management will focus on customer services and provide telecommunication and high-speed Internet services everywhere in the country.

He was talking to reporters after signing the agreement to purchase the management stake (1.326 billion shares) of PTCL. Privatization Minister Dr Abdul Hafeez Sheikh, Privatization Commission Secretary Tehseen Khan Iqbal, members of Etisalat Consortium and officials of JP Morgan were also present on the occasion.

Mr Meshar said that his company would announce a future plan to improve operations of PTCL for the benefit its employees, subscribers and the country. “This will include a good plan for PTCL staff.”

Dr Hafeez said the PTCL privatization would give a signal to the world that the privatization was done in a transparent manner in Pakistan. He was confident that the PTCL-Etisalat synergy would emerge as a top class company in the world.

In reply to a question, the minister said in the next round, Mustehkam Cement would be privatized in July, followed by PSO, PPL and NIT. “After these, Karachi Shipyard, Pakistan Steel, Jamshoro Power Plant and Faisalabad Electricity Board will come under hammer,” he added.