Pakistan is considering international arbitration against Etisalat to recover about $800 million still unpaid from the 2005 sale of Pakistan Telecommunication Company Limited (PTCL), along with the opportunity cost since 2008 and applicable damages, following a briefing to Senate committees on Tuesday, November 3, 2026.
What happened?
The matter came up at a joint meeting of the Senate standing committees on information technology and privatisation. According to a Ministry of Privatisation briefing reported by Dawn, the federal cabinet has directed the Office of the Attorney General for Pakistan to implement its decision at the earliest. A committee set up in July 2026 recommended pursuing arbitration under the share purchase agreement after two decades of unresolved dispute.
Key details
- In 2005, the government sold a 26 percent stake in PTCL, along with management control, to Etisalat International Pakistan for $2.59 billion.
- Of that sum, $1.76 billion has been received, while about $800 million remains unpaid.
- The unpaid amount is linked to PTCL properties that were not transferred under the deal; the briefing said 99 percent of properties have been transferred, with 32 of 3,246 still outstanding.
- The July 2026 committee included representatives from the IT and law ministries and the Attorney General’s office.
- Nothing has been filed yet: if the merits permit arbitration, the Attorney General is to seek approval from the prime minister or the federal government before issuing a Notice of Intent to Etisalat.
What it means for people in Pakistan
A resolution of this long-running dispute could bring a significant sum into public funds and remove a long-standing uncertainty hanging over one of the country’s largest telecom privatisations. For PTCL customers, the immediate effect is limited, as no case has been filed and the process still requires further approvals.
Source: https://www.techjuice.pk/pakistan-may-take-etisalat-to-arbitration-over-unpaid-800-million-ptcl-deal/
