ISLAMABAD, March 12: Pakistan signed a landmark deal with Etisalat on Sunday giving the UAE’s telecom giant 26 per cent shares of the Pakistan Telecommunication Company Ltd (PTCL) at a cost of $2.6 billion along with its management control.

Prime Minister Shaukat Aziz, who held a meeting with Etisalat chief executive officer Mohammed Hassan Imran and later witnessed the signing ceremony, termed it historic in the country’s privatisation history.

In reply to a question, Mr Imran said: “The workers and experts of the PTCL are a major human resource whose services will be utilised not only in Pakistan but they will also be considered for employment in other countries where Etisalat has its offices.”

The prime minister and Privatisation Minister Hafeez Sheikh appreciated efforts of presidents and ambassadors of the two countries in getting the deal concluded.

Etisalat had won PTCL shares in open bidding by offering the highest bid, but later it appeared to be backtracking prompting the government to launch hectic efforts to keep the contract intact.

The government and Etisalat reached an agreement on modalities and procedures for transfer of the PTCL management to the firm a couple of weeks ago following a series of discussions during which the company obtained several additional concessions.

On Jan 6, the Cabinet Committee on Privatisation approved the deal by amending the structure of the big transaction allowing Etisalat to complete the payment by the end of 2010.

Under the amended deal Etisalat will pay $1.4 billion before taking over the management control of the PTCL. So far, it has paid $260 million. The remaining $1.2 billion will be paid in nine six-monthly instalments.

The prime minister described the signing of the deal as defining moment because of the largest single transaction ever in the country’s privatisation history.

He expressed satisfaction over the way the telecom sector was growing in the country and hoped that Etisalat with its worldwide network and management experience would add to the value.