DUBAI Pakistan will receive a payment of $800 million by the end of March from the UAEs Etisalat for a stake in Pakistan Telecommunication Co (PTCL), Pakistans Minister of Privatisation said on Wednesday.
In 2006, Etisalat, the Gulf Arab regions second-largest telecom firm, signed an agreement to purchase a 26 per cent stake in PTCL for $2.6 billon, but so far only $1.4 billion has been paid, due to problems linked with a transfer of 3,000 real estate units.
Under the contract, the government agreed to transfer the properties before Etisalat made the full payment.
“We have agreed on a framework with Etisalat by which the transfer of $800 million will happen by the end of March ... the property issues will be resolved soon,” Waqar Ahmed Khan told Reuters in an interview on Wednesday.
In December, Etisalat said the remaining $1.2 billion would be paid in equal instalments over a period of 4.5 years in consideration for “certain corresponding deliverables by the Pakistani counterpart.”
Etisalat declined to comment on the agreement. It remains unclear whether Pakistan has decided to give the telecom giant a discount. Khan declined to comment on the remaining $400 million.
“We want to resolve all the issues with this deal and move on to privatising other companies and we just want this to be a good example to lead by in the future,” Khan added.
So far 93 per cent of the land and properties under the contact had been transferred to Etisalat, Pakistan had said in December.
Etisalat has faced increased competition in its home market after its monopoly was broken in 2007 by Dubai-based du.
Etisalat, operating in 18 countries, including Egypt and India, is one of a number of Gulf Arab telecom operators that have expanded overseas after losing their monopolies at home. -Reuters
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