Pakistan to Finally Resolve $799 Million PTCL Privatization Dispute After 16 Years
Pakistan has taken a major step toward resolving one of its longest-running privatization disputes, as Deputy Prime Minister and Foreign Minister Ishaq Dar arrived in Dubai to hold high-level talks with UAE-based telecom giant Etisalat.
The discussions aim to break a deadlock over nearly $799 million that has remained unresolved for more than 16 years, stemming from the controversial privatization of Pakistan Telecommunication Company Limited (PTCL).
According to the Foreign Office of Pakistan, Ishaq Dar traveled to Dubai after attending the World Economic Forum in Davos, Switzerland. His visit is focused specifically on negotiations with Etisalat’s senior management to address the outstanding financial and contractual issues linked to the PTCL deal.
The dispute dates back to 2006, when Etisalat acquired a 26 percent stake and management control of PTCL. While Etisalat paid a significant portion of the agreed amount, it withheld nearly $799 million, citing unresolved issues related to the transfer of PTCL-owned properties and assets.
Over the years, the stalled payment has become a major point of contention between Pakistan and Etisalat, impacting investor confidence and complicating the country’s broader privatization agenda.
Officials familiar with the matter say the government is now prioritizing a settlement as part of its efforts to improve foreign investment relations, particularly with strategic partners like the United Arab Emirates.
The Foreign Office confirmed that Ishaq Dar is scheduled to hold official meetings during his Dubai visit, including detailed discussions with Etisalat executives. However, no information has been shared regarding any planned meetings with UAE government officials or ministers.
The timing of the visit is significant, as Pakistan continues to face economic pressures, foreign exchange constraints, and the need to unlock stalled inflows. Resolving the PTCL dispute could potentially ease long-standing legal and financial uncertainties tied to one of the country’s largest privatization transactions.
Analysts believe a successful resolution could also send a positive signal to international investors, demonstrating Pakistan’s willingness to address legacy disputes and honor long-term commercial commitments.
The PTCL privatization has frequently been cited as a cautionary example in Pakistan’s economic history, with delays and disagreements overshadowing what was initially promoted as a landmark reform. A settlement after 16 years would mark a rare closure of a high-profile privatization conflict.
While no official outcome has been announced yet, sources indicate that both sides are under increasing pressure to reach a mutually acceptable agreement, particularly amid renewed diplomatic and economic engagement between Pakistan and the UAE.
