The Pakistan Telecommunication Authority (PTA) has issued a strong warning to Long Distance and International (LDI) operators over unpaid dues, signaling the potential cancellation of licenses for non-compliant companies. The matter was highlighted during a comprehensive briefing given by the PTA Chairman to the National Assembly’s Standing Committee on Information Technology and Telecommunication.
PTA Warns LDI Operators of License Cancellation
According to the PTA Chairman, nine LDI companies collectively owe significant outstanding dues, with five companies having already paid Rs. 64 billion. The core amount still pending stands at Rs. 24 billion, he said.
“Five operators were ready last year to pay their dues in installments. Currently, these operators are willing to clear Rs. 8.2 billion,” the Chairman informed the committee. “However, there remain companies unwilling to make payments, and their share of the dues is approximately Rs. 16 billion,” he added.
The PTA has already issued show-cause notices to the defaulting LDI operators. The Chairman indicated that if the situation persists, the authority may be compelled to cancel their operating licenses.
Legal and Regulatory Constraints
The Chairman clarified that PTA lacks the authority to unilaterally approve payment through installments. “If we accept payments in installments without formal government directives, questions will be raised in the future,” he said. “We need a policy-level instruction to move forward in this manner.”
Government Raises Concerns
Federal Minister for IT & Telecom, Shaza Fatima, also expressed serious reservations over the idea of allowing installment-based payments. “Allowing such a concession could open a Pandora’s box,” she said. “It would set a precedent, requiring the government to accept installment payments across other sectors as well.”
She added that even companies willing to pay in installments have refused to withdraw their legal cases. “Even if payments are received, the funds cannot be utilized by the government until the court cases are resolved. The money would remain in escrow accounts.”
To this, the PTA Chairman responded, “If we do receive the dues, the money will not go into escrow accounts—it will be deposited directly into the Ministry of IT’s account.” However, he added, “If the government loses the legal battle, those funds will need to be returned.”
Network Disruption Risks
The PTA Chairman further cautioned against the abrupt cancellation of licenses, noting the potential impact on the country’s communication infrastructure. “If licenses are revoked, around 50% of mobile services and 40% of ATM networks could be affected,” he warned.
Call for Collaborative Resolution
The Chairman of the Standing Committee emphasized the need for a joint strategy. “The PTA and the Ministry of IT must come together with a comprehensive solution,” he advised.
The PTA Chairman concluded by stating that after completing the hearing process of the concerned companies, a final decision would be taken. “Whether it involves license cancellations or any other action, we are ready. However, any funds collected will be deposited into the Ministry of IT’s account, not in escrow. If the government loses the legal battle, the money would have to be returned.”
Opposition Voices Stronger Action
Barrister Gohar, a member of the committee, demanded strict action against the defaulting companies. “They have earned billions from the public. These amounts are negligible for them,” he remarked. “We must deal with them firmly.”
As legal proceedings continue, the matter remains stalled due to pending court decisions. The court has instructed that no punitive action be taken until the cases are resolved.
