Nearly Half of All Telecom and ATM Services in Pakistan Will Shut Down Over this Govt Decision: PTA Chairman

Chairman of the Pakistan Telecommunication Authority (PTA) Major General (Retired) Hafeez Ur Rehman on Monday warned the National Assembly Standing Committee on Information Technology that revoking licenses of defaulting Long Distance and International (LDI) operators could disrupt 50 percent of mobile services and block 40 percent of ATMs across the country. Briefing the committee, the PTA chief revealed that nine LDI companies currently owe significant dues, with five operators having already paid Rs. 64 billion. The remaining principal amount stands at Rs. 24 billion. Of these, five companies are willing to settle Rs. 8.2 billion in installments, while the remaining Rs. 16 billion is tied to companies unwilling to pay. Show-cause notices have been issued, and license cancellations remain on the table, the chairman said, but he emphasized that PTA lacks the legal authority to independently approve installment-based recoveries. Federal Minister of State for IT, Shaza Fatima, agreed and said allowing installments might set a precedent across sectors and open a “Pandora’s box.” She added that even if the funds are recovered in parts, they would be locked in an escrow account until legal proceedings conclude and would be unusable by the government in the meantime. Shaza Fatima also clarified that the PTA cannot act alone and must coordinate with the IT Ministry. These cases are stuck in court, and the court has explicitly ordered no action be taken for now, she said. The committee chair urged PTA and the IT Ministry to consult the LDI companies and work toward a resolution. The PTA chairman concluded by saying that once all hearings are complete, a final decision will be taken, including license cancellations if necessary. However, if the government loses the court cases, any recovered funds would have to be returned, he added.