Etisalat walks out of PTCL privatization

Sunday, October 30, 2005
Etisalat walks out, govt refers case to Privatisation Board

Staff Report

ISLAMABAD: The government on Saturday referred the privatisation issue of the Pakistan Telecommunications Company Limited (PTCL) to the Privatisation Board and the Cabinet Committee on Privatisation for a final decision after the Privatisation Commission failed to resolve differences with Emirates Telecommunications Corporation (Etisalat), which did not meet the October 28 deadline of depositing about $2.59 billion for a 26 percent stake in PTCL. Privatisation and Investment Minister Dr Hafeez Sheikh chaired a meeting on Saturday with Privatisation Commission officials to discuss the Etisalat issue. Privatisation Committee officials said the meeting was officially informed that Etisalat was no more interested in a 26 percent share in PTCL.

Dr Hafeez Sheikh told reporters after the meeting that PTCL’s privatisation was a big deal. “We still want the deal with Etisalat to come through according to schedule,” he said before going to meet Prime Minister Shaukat Aziz to discuss the issue and decide whether to offer the deal to the second highest bidder or to continue talking to Etisalat.

Etisalat on Friday failed to make its final payment of about $2.59 billion. This is the third time that Etisalat has petitioned the Privatisation Committee to extend the deadline for making the final payment. Etisalat offered the Privatisation Commission about $2.59 billion for a 26 percent stake in PTCL and control over its management.