PTA May Cancel Licenses of LDI Companies Over Unpaid Dues Worth Billions

ISLAMABAD: The National Assembly’s Standing Committee on Information Technology convened today for a crucial meeting during which the Pakistan Telecommunication Authority (PTA) Chairman briefed the members about the outstanding dues owed by Long Distance International (LDI) companies.

According to the PTA Chairman, a total of nine LDI companies have outstanding dues, while five of them have already paid PKR 64 billion. The remaining basic amount owed by these companies stands at PKR 24 billion. He further noted that five operators had shown willingness last year to pay the dues in installments, and they are currently ready to pay PKR 8.2 billion.

However, the Chairman expressed concern over companies that are unwilling to cooperate, stating, “The amount due from companies that are not ready to pay is around PKR 16 billion.” In response, show-cause notices have been issued, and license cancellation remains a strong possibility if dues are not cleared.

The Chairman emphasized that the PTA cannot independently accept payments in installments without formal approval. “If we allow installment-based payments without clear directives, we may face accountability in the future,” he warned.

Federal Minister Shaza Fatima echoed these concerns, stating, “If we allow installment payments in this case, we will open a Pandora’s box, and the government will be compelled to follow the same model in other sectors as well.”

She added that even if companies agree to pay in installments, they are not withdrawing their legal cases. “Until these court cases are resolved, the collected funds will remain locked in escrow accounts and will not be usable by the government,” she said.

Fatima also highlighted that the courts have instructed not to take any unilateral action, adding, “PTA cannot make decisions in isolation, and if it does, questions will be raised later.”

Barrister Gohar came down hard on the telecom companies, stating, “These companies have made billions off the people of Pakistan, and we must deal with them firmly. The amount in question is insignificant for them.”

However, the PTA Chairman cautioned that canceling licenses could have significant consequences, including disruptions to 50% of mobile services and 40% of ATM operations nationwide.

In response, the Committee Chairman advised that the PTA and the Ministry of IT should sit down with the companies to work out a practical solution. “After completing the hearing process, we’ll make a final determination—whether it’s license cancellation or any other action, we’re ready to proceed,” the PTA Chairman assured.

He also clarified that in case of recovery, the funds would go to the Ministry of IT’s account—not into escrow. However, if the government loses the court cases, the money would have to be returned to the companies.

The Committee concluded the session by recommending that the Ministry of IT, PTA, and LDI companies hold joint discussions to find a resolution that ensures both accountability and continuity of services.