The federal government is considering international arbitration to recover approximately $800 million from UAE-based telecom company Etisalat over the privatisation of Pakistan Telecommunication Company Limited (PTCL).
The outstanding payment has remained unresolved for nearly two decades. The government is now exploring legal options to recover the amount, along with its opportunity cost since 2008 and applicable damages.
Cabinet Directs Attorney General to Prepare Case
The issue came under discussion during a joint meeting of Senate standing committees on information technology and privatisation on Tuesday.
Officials informed lawmakers that the Office of the Attorney General for Pakistan had been directed to implement the federal cabinet’s decision under Rule 24 of the Rules of Business, 1973.
The cabinet has asked the attorney general’s office to assess the legal grounds for pursuing international arbitration.
However, senators expressed concern that they had not received access to the sale-purchase agreement governing the transaction.
Dispute Dates Back to PTCL Privatisation
Pakistan sold 26 percent of PTCL shares, along with management control, to Etisalat in 2005 for $2.59 billion.
The company paid approximately $1.76 billion, while nearly $800 million remains outstanding.
The payment dispute centres on the transfer of PTCL properties to the new management. Although Pakistan transferred 99 percent of the properties, 32 out of 3,246 properties remained unresolved.
Etisalat, now known as e&, has withheld the remaining amount over the incomplete property transfers.
Government Considers Legal Action
The government has attempted to resolve the dispute through negotiations and several committees since 2015.
In July 2026, another committee reviewed the matter and recommended considering international arbitration under the sale-purchase agreement.
It also advised the attorney general to assess Pakistan’s legal position and the potential consequences of arbitration.
The government now faces the challenge of resolving a longstanding privatisation dispute while pursuing the outstanding payment through available legal channels.
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