50% Mobile and 40% ATM Services at Risk if LDI Licenses Are Revoked, Warns PTA

Islamabad: In a formal briefing before the National Assembly Standing Committee on Information Technology, Chairman of the Pakistan Telecommunication Authority (PTA), Major General (Retd.) Hafeez Ur Rehman, cautioned that the suspension of licenses for defaulting Long Distance and International (LDI) operators could lead to widespread disruption in mobile connectivity and financial transaction services across the country.

During a high-stakes briefing on Monday, the PTA chief warned that such a move could cripple nearly half of Pakistan’s mobile communication infrastructure and block 40 percent of ATM operations nationwide.

Nine enterprises in the LDI industry now have significant overdue balances with the government. Five operators satisfied their outstanding commitments with Rs. 64 billion in payments, while authorities require Rs. 24 billion of the principal sum. Five companies in the defaulter group have consented to repay Rs. 8.2 billion in planned installments, while the remaining Rs. 16 billion comes from operators who want to evade repayment.

The PTA has served show-cause notices to responsible firms, with license cancellations being taken as a serious option. The PTA chairman confirmed that the organization lacks the legal power to accept payment installments independently.

During an IT meeting at the National Press Club Shaza Fatima, Union Minister of State for IT, declared her skepticism about the potential risks of authorizing installment payments because such a policy change might bring problems to multiple sectors. The recovered funds would be stored in escrow after receiving partial payments during the judicial process, where the government remains unable to access these funds.

According to Shaza Fatima, the PTA needs official collaboration with the IT Ministry in order to move forward. All stakeholders must wait for court decisions to become final before conducting any operational moves because legal actions already progress through the judicial system.

The committee chair proposed the PTA, together with the IT Ministry, should contact LDI operators to discuss practical solutions. Concluding the briefing, the PTA chairman reiterated that any final decision, whether installment-based recovery or license revocation, will be contingent on the outcome of the judicial proceedings. He added that, should the court rule against the government, any amounts already recovered may have to be refunded.