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ISLAMABAD: The National Assembly Standing Committee on Information Technology and Telecom recently convened to discuss the Rs78 billion owed by Long Distance and International (LDI) telecom companies. The PTA Chairman presented three potential strategies to address the issue: depositing the entire outstanding amount into an escrow account, recovering the dues in installments, or suspending the companies’ licenses.
The first option, a lump sum deposit into an escrow account, would require the companies to pay the entire amount upfront. The second option involves negotiating installment plans for repayment. The third and most drastic option, the suspension of LDI companies’ licenses, would have significant consequences on the telecommunications sector, especially ATM services. The PTA Chairman warned that canceling the licenses could lead to up to 50% disruption in ATM services, as the banking infrastructure heavily relies on the LDI companies.
Barrister Gohar, a legal expert, raised concerns over being too lenient with the companies, as many of them generate revenue in foreign currencies. He stressed that installment-based repayment should be the last option, urging for a more decisive approach to ensure the recovery of the dues. The principal amount owed by the companies stands at Rs.24 billion, with an additional late payment surcharge exceeding Rs50 billion, dating back to the period between 2008 and 2011.
The Committee Chairman, concerned about the slow progress of resolving this issue, inquired whether the case could be moved to the Telecom Tribunal. However, officials from the Ministry of IT confirmed that the Telecom Tribunal has not yet been activated. The Chairman has asked for a detailed report on its activation during the next meeting.
The committee emphasized the urgency of resolving the situation, given the critical role LDI companies play in the country’s telecommunications and banking sectors. The PTA is now faced with a pivotal decision on how to recover the massive outstanding dues while minimizing disruption to essential services.
