2 min read
Islamabad — The Pakistan Telecommunication Authority (PTA) has launched enforcement proceedings against China Mobile Pakistan Limited (CMPak), the operator of Zong, for failing to pay a Late Payment Additional Fee (LPAF) of $11.77 million. The Pakistan Telecommunication Authority (PTA) has initiated enforcement proceedings under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996.
According to official documents, the dispute stems from the delayed renewal of a telecom license originally granted in 1990 to Paktel Limited, which was later acquired by CMPak. The license, revalidated in 1997 and subsequently renewed in 2004, was due for renewal again on October 23, 2019. In May 2019, the federal government issued a Policy Directive mandating the renewal of all cellular licenses under specific financial and regulatory terms. CMPak, contesting the renewal fee, challenged the policy through a writ petition in the Islamabad High Court.
Despite legal proceedings, the Islamabad High Court ordered CMPak to pay 50% of the license renewal fee as an interim measure. The company deposited a total of PKR 18.46 billion (approx. USD 238.6 million) in two installments in November 2019. However, due to the delayed payment beyond the October 23, 2019, deadline, the PTA imposed an additional late fee of USD 11.77 million.
If Zong fails to settle the outstanding $11.77 million fee, it could face escalating regulatory actions, including potential penalties, license restrictions, or service disruptions. However, the company still has the option to contest the proceedings or negotiate a resolution with the PTA to avoid further fallout and maintain its operational standing in Pakistan’s competitive telecom market.
