The government is considering international arbitration against Etisalat to recover $800 million still owed from the sale of Pakistan Telecommunication Company Limited (PTCL), along with the opportunity cost since 2008 and applicable damages.
The matter was taken up on Tuesday at a joint meeting of the Senate standing committees on information technology and privatisation. Members were told that the Office of the Attorney General for Pakistan (OAGP) has been directed to implement the decision of the federal cabinet under Rule 24 of the Rules of Business, 1973, at the earliest.
The meeting was jointly chaired by Dr Afnanullah Khan, chairman of the privatisation committee, and Palwasha Khan, chairwoman of the IT and telecommunications committee. IT Secretary Zarrar Hasham Khan described the agenda item as sensitive and asked that unauthorised persons, including media representatives, leave the room. The proceedings were then held in camera.
Senators from both committees said they had not been given access to the sale purchase agreement (SPA) covering the transfer of a 26 percent stake and management control of PTCL to UAE-based Etisalat International Pakistan. One senator said parliament should be informed about the sale of national assets through legislation rather than relying on bureaucrats and officers.
According to a Ministry of Privatisation briefing, seen by Dawn, the government sold the 26 percent stake and management control to Etisalat in 2005 for $2.59 billion. Of that sum, $1.76 billion has been received, while about $800m remains unpaid.
The payment was linked to the transfer of PTCL properties to the new management. The briefing said 99 percent of the properties have been transferred, but 32 of the 3,246 properties remain untransferred. Etisalat, now known as e&, has withheld the balance because of these pending transfers.
The ministry said the government has made extensive efforts since 2015 to resolve post-privatisation issues, including forming several committees and negotiating with Etisalat. As the dispute remained unresolved, another committee was constituted in July 2026 under the prime minister’s adviser on privatisation, with representatives from the ministries of IT and law and the OAGP.
Citing the 20-year history of the dispute, the committee recommended that Pakistan pursue international arbitration as provided under the SPA to recover the $800 million, the opportunity cost since 2008 and damages. It also recommended that the attorney general assess the strength of the case, its prospects of success and the legal implications.
The briefing stated that, if the merits permit arbitration, the attorney general should seek approval from the prime minister or the federal government before issuing a Notice of Intent to Etisalat. The Privatisation Division told the committees that a summary has been submitted to the federal cabinet.
