3 min read
Islamabad: Seven major Long-Distance and International (LDI) companies, along with senior officials from the Ministry of Information Technology (MoITT) and the Pakistan Telecommunication Authority (PTA), have been implicated in a major financial scandal that has disrupted Pakistan’s telecommunications sector. The controversy revolves around Rs 58.9 billion in outstanding dues, raising serious concerns about regulatory oversight and possible collusion.
Several telecom companies, such as WorldCall Telecom and Wateen Telecom, TeleCard, Dancom Pakistan, Redtone Telecommunication Pakistan, Wise Communication, and Circle Net Communication (Pvt) Ltd., were implicated in this telecommunications scandal. These companies have allegedly been operating for months with expired licenses, resulting in substantial financial losses to the national treasury.
The enormous extent of suspected bribery is demonstrated by the financial debacle, which includes principal outstanding payments totalling Rs 16.7 billion and surcharges costing Rs 42.2 billion, as confirmed by documents.
The Ministry of IT and PTA are currently under increased scrutiny, with allegations surfacing that officials from these institutions deliberately delayed efforts to recover the outstanding amounts. Regulatory bodies have been accused of corruption and negligence, which has contributed to the protracted nature of the crisis, according to sources at TechJuice.
The government’s commitment to resolving this issue is evident in the direct intervention of Prime Minister Shehbaz Sharif in the removal of the IT secretary from office. The decision to revoke the licenses of delinquent operators is a recognition of the Law Division’s previous recommendations against the renewal of licenses for non-paying telecommunications companies.
Corruption and Financial Misconduct
Accusations of money laundering have increased since these entities allegedly transported large sums of money offshore utilising illegal payment networks such as Hawala and Hundi. According to TechJuice sources, these companies generated Rs 500 billion in revenue over the last decade by neglecting to pay taxes and meet licensing requirements.
The Sindh High Court (SHC) recently issued a directive for the authority to immediately resolve the matter, according to a senior PTA official. There are allegations in certain sources that additional instances of delayed claims have occurred over extended periods, which implies that there may be potential institutional malfeasance. According to the sources, PTA officials were compensated significantly for prolonging the issue rather than fulfilling their regulatory obligations.
PTA comprehends the challenges associated with recovering outstanding fees; however, enquiries regarding the current regulatory framework persist. The money collected was confirmed to have been sourced from the Universal Service Fund and other government distributions by reliable sources.
The announcement has resulted in calls for a comprehensive investigation by the National Accountability Bureau (NAB) to ensure transparency and accountability in Pakistan’s telecommunications sector. Experts stress the urgent need for strict regulatory enforcement and systemic reforms to prevent further financial mismanagement.
With billions at stake, the government’s next steps will be crucial in restoring trust in the telecom industry and ensuring that those responsible are held accountable.
