PTCL privatisation deal was not transparent, NA told

ISLAMABAD: The government informed the National Assembly on Wednesday that the deal for privatisation of the Pakistan Telecommunication Company Ltd was “not transparent and was made in violation of rules and procedures”.

Minister for Privatisation Waqar Ahmed Khan said the agreement for the sale of 26 per cent PTCL shares with the UAE-based Etisalat was finalised and transaction was made without taking the Privatisation Commission Board into confidence.

He said Etisalat had withheld $800 million over the issue of mutation of land to be transferred to it. Around 3,500 properties, which included land not owned by the federal or any provincial government but private property under litigation, were to be transferred to Etisalat.

The minister said the government had received $1.79 billion from Etisalat and of that amount $1.5 billion had been remitted to the federal government for debt retirement and poverty alleviation. Besides, $251 million had been utilised for payment of 50 per cent government share on account of PTCL employees’ VSS dues. The remaining amount had been used for payment of transaction cost, including financial advisory and legal services.

Because the matter involved two states, he said, the government was trying to resolve amicably the issue of withheld amount through diplomatic channels. He, however, said there had been no headway in this regard so far.

Mr Khan said that the deal was full of flaws and legal advisers had asked the then government to scrap it. Otherwise would be considered as having been reached in violation of rules, the government was informed.

The house referred the matter to the standing committee on privatisation.

Later, Khawaja Sheraz requested the chair to form a special probe committee and the minister did not oppose the suggestion.

Deputy Speaker Faisal Karim Kundi, who was presiding over the session, said: “The matter is referred to the standing committee. However, if the committee members feel that formation of a special committee was essential, it will be done.”