Govt Panel Fails to Reach Decision on Billions of Unpaid Telecom Dues. In a high-level meeting chaired by Zulfiqar Ali, the government’s sub-committee on IT and Telecom once again failed to reach a decision on how to recover billions of rupees in unpaid dues from Long Distance International (LDI) telecom companies. Despite the urgency of the matter and several rounds of discussions, the committee could not achieve a consensus due to differing opinions and ongoing legal hurdles.
Issue of Unpaid LDI Dues
The dispute revolves around massive outstanding payments owed by LDI operators — telecom firms that handle international long-distance traffic. These companies are required to pay specific regulatory dues to the Pakistan Telecommunication Authority (PTA) under licensing agreements.
However, for years, many of these firms have defaulted on payments, leading to a mounting financial burden on the national exchequer. The PTA issued multiple determination orders after hearings, but several companies sought court stays to delay or block enforcement actions.
The Closed-Door Meeting
The in-camera session, requested by officials from the Ministry of Law and Justice, was intended to find a resolution to these long-standing disputes. Key government officials, including representatives from the Ministry of IT and Telecom, PTA, and Law Division, attended the meeting to discuss possible solutions.
Unfortunately, despite extensive dialogue, the sub-committee failed to reach any final decision on how to proceed.
Absence of Federal Minister Shaza Fatima Khawaja
Sources familiar with the meeting revealed that the absence of Federal Minister for IT and Telecom Shaza Fatima Khawaja may have contributed to the deadlock. Her participation was expected to provide clarity and direction, given her ministry’s authority in overseeing telecom matters. Without her presence, the committee reportedly struggled to finalize an action plan or policy framework.
Ministry of Law and Justice Briefing
The Secretary of Law and the Additional Attorney General briefed the members on the pending court cases involving the telecom companies. They highlighted that several firms have ongoing legal proceedings that prevent the PTA from taking enforcement actions.
These cases have significantly delayed the recovery of dues, leaving billions of rupees hanging in uncertainty. Legal experts in the meeting emphasized that without the conclusion of these cases or a clear legal framework, the government’s options remain limited.
PTA’s Role and Limitations
The Pakistan Telecommunication Authority has long maintained that it fulfilled its regulatory obligations by issuing notices and conducting formal hearings. The PTA’s determination orders outlined the amounts payable by each LDI company.
However, due to stay orders from the courts, the authority’s hands remain tied. Officials clarified that any installment plans or settlement decisions regarding the payment of dues fall under the Ministry of IT and Telecom’s jurisdiction, not the PTA’s.
This bureaucratic overlap has further slowed down the process of resolving the dispute.
LDI Companies’ Proposals
During the session, the committee also reviewed proposals submitted by the LDI companies. Most operators reportedly expressed willingness to pay their principal dues — but requested installment-based repayment plans to ease their financial burden.
Some companies, however, maintained that even their principal dues are under judicial review, meaning they will only act once the courts issue final judgments.
This mixed response added another layer of complexity, making it harder for the sub-committee to find a one-size-fits-all solution.
Call for Judicial Reforms and Telecom Tribunal
Several committee members stressed that such financial disputes could be avoided if Pakistan had an operational Telecom Tribunal — a specialized body to handle telecom-related legal cases swiftly.
Officials pointed out that the Ministry of Law is responsible for appointing the chairman and members of this Tribunal. Had the body been functional, it could have resolved these disputes years ago, saving billions in delayed payments.
The sub-committee agreed that establishing or reactivating the Telecom Tribunal should be a government priority to prevent future payment disputes from lingering indefinitely.
Broader Economic Impact
Unpaid telecom dues represent not just a financial loss for the government but also a threat to investor confidence in Pakistan’s telecom sector. Industry analysts warn that regulatory uncertainty and prolonged legal disputes can discourage future investments in the digital economy.
The government has made digital transformation a cornerstone of its economic strategy, but unresolved financial issues within the telecom sector risk undermining these goals.
Furthermore, delayed payments reduce the government’s ability to fund critical ICT infrastructure projects — such as broadband expansion, spectrum upgrades, and connectivity initiatives for remote areas.
The Way Forward
While the meeting ended without a conclusion, insiders say the government is considering several steps to break the impasse, including:
- Forming a joint task force between the IT Ministry and Law Division to coordinate legal follow-ups.
- Requesting early court hearings for pending cases involving telecom dues.
- Establishing a Telecom Tribunal to handle all future telecom disputes efficiently.
- Negotiating structured payment plans for companies willing to clear their dues.
Experts believe that a combination of judicial reforms and policy coordination could finally bring closure to this issue.
Public and Industry Reaction
The telecom industry’s response has been mixed. Some operators appreciated the government’s willingness to discuss installment-based repayment options, while others expressed concern about policy inconsistency.
Industry observers also criticized the government’s slow response, arguing that the absence of clear timelines and accountability mechanisms could lead to more defaults in the future.
Meanwhile, consumer rights groups have called for greater transparency, suggesting that the PTA and IT Ministry should publicly disclose the names of defaulting companies and the exact amounts owed.
Conclusion
The failure of the IT and Telecom sub-committee to reach a decision underscores the complex nature of telecom disputes in Pakistan. With billions in unpaid dues, ongoing court battles, and overlapping jurisdictions between ministries, the road to resolution remains long.
However, establishing a Telecom Tribunal, streamlining policy authority, and ensuring accountability across departments can pave the way toward financial stability and improved governance in Pakistan’s telecom sector.
FAQs
1. What are LDI companies in Pakistan?
Long Distance International (LDI) companies handle international telecom traffic to and from Pakistan. They operate under licenses issued by the PTA and must pay regulatory dues periodically.
2. Why couldn’t the government panel make a decision?
The panel failed to reach a consensus due to ongoing court cases, absence of key officials, and differing legal opinions between ministries.
3. How much money is owed by the telecom companies?
Exact figures have not been disclosed publicly, but the unpaid dues are reportedly worth billions of rupees.
4. What is the role of the PTA in this issue?
PTA conducted hearings and issued payment determinations but cannot enforce them due to court stay orders.
5. What is the proposed solution to this problem?
Experts recommend forming a Telecom Tribunal, accelerating court decisions, and allowing installment-based repayment for companies willing to settle.
