ISLAMABAD: The government is considering international arbitration against Etisalat over the outstanding $800 million payment from the sale of Pakistan Telecommunication Company Limited (PTCL), along with its opportunity cost since 2008 and applicable damages.
The matter was discussed at a joint meeting of the Senate standing committees on information technology and privatisation on Tuesday, where members were informed that the Office of the Attorney General for Pakistan (OAGP) had been directed to implement the federal cabinet’s decision under Rule 24 of the Rules of Business, 1973, at the earliest.
However, senators from both committees expressed surprise that they were not given access to the sale purchase agreement (SPA) concerning the divestment of 26pc shares in PTCL, along with management control, to UAE-based Etisalat International Pakistan (EIP).
The meeting was jointly chaired by Senator Dr Afnanullah Khan, chairman of the Senate Standing Committee on Privatisation, and Senator Palwasha Khan, chairwoman of the Senate Standing Committee on Information Technology and Telecommunications.
Cabinet asks attorney general’s office to prepare case for international arbitration
At the outset, IT Secretary Zarrar Hasham Khan informed the committees that the agenda item concerning Etisalat’s outstanding $800m payment to the government was sensitive.
He requested the chairpersons to ask all unauthorised persons, including media representatives, to leave the meeting, following which the proceedings were held in camera.
However, after the meeting, some senators expressed annoyance that they, too, had not been provided details of the PTCL sale agreement.
“The strange part is that we parliamentarians cannot handle information, but it is safe with the bureaucrats,” one senator remarked.
“There has to be a law in this regard, and parliament should be informed about such sales of national assets rather than depending upon bureaucrats and officers,” the senator added.
According to a briefing submitted by the Ministry of Privatisation, a copy of which is available with Dawn, the government sold 26pc shares in PTCL, along with management control, to Etisalat in 2005 for $2.59 billion.
Of this amount, $1.76bn was received, while approximately $800m remains unpaid.
The briefing said the payment was linked to the transfer of PTCL properties to the new management. Although 99pc of the properties had been transferred, 32 of the total 3,246 properties remained untransferred.
Etisalat, which is now known as e&, has continued to withhold the outstanding $800m because of the non-transfer of these properties.
The ministry said the government had made extensive efforts since 2015 to resolve post-privatisation issues, including the formation of several committees and negotiations with Etisalat for an amicable settlement.
However, the dispute remained unresolved, prompting the government to constitute another committee in July 2026, headed by the adviser to the prime minister on privatisation. The committee included representatives of the ministries of IT and law and the OAGP.
Considering the 20-year history of the dispute, the committee recommended that Pakistan consider international arbitration, as provided under the SPA, to recover the outstanding $800m, along with its opportunity cost since 2008 and applicable damages.
It also recommended that the attorney general assess the strength of Pakistan’s case, its prospects of success and the associated legal implications.
“If merits of the case permit to pursue international arbitration, prior to issuance of the Notice of Intent to Etisalat, the Attorney General should seek approval of the prime minister or the federal government,” the privatisation ministry’s briefing stated.
The Privatisation Division informed the committees that a summary had subsequently been submitted to the federal cabinet.
Published in Dawn, November 4th, 2026
