PTA Awaits Policy Directive from IT Ministry to Recover Rs. 78 Billion from LDI Companies

The Pakistan Telecommunication Authority (PTA) is awaiting a policy directive from the Ministry of IT and Telecommunication (MoIT) to recover Rs. 78 billion in outstanding dues from Long Distance and International (LDI) telecom companies. Five companies have offered to pay Rs. 8.2 billion, the full principal amount, in installments, but the process has stalled due to the ministry’s inaction, according to PTA documents. Out of the total dues, Rs. 15.8 billion is owed by four LDI companies that have refused to settle their outstanding amounts. Additionally, ten companies are liable for Rs. 54.5 billion in late payment surcharges. Despite these liabilities, the Sindh High Court has barred PTA from taking action against the companies until their license renewal issues are resolved. The court has also directed PTA to determine the renewal status of licenses, which expired in 2024. PTA sent a letter to the IT ministry on December 4 last year, requesting a policy directive to resolve the matter by December 13. However, no directive has been issued so far, leaving PTA unable to enforce payments or finalize the renewal of licenses for the ten LDI companies. Despite the licenses’ expiration, the companies’ operations remain unaffected as they have sought relief from various courts. The Ministry of IT, which manages the Universal Service Fund (USF) and the Access Promotion Contribution (APC) fund, has recommended that the federal government approach the Supreme Court. It has proposed consolidating all cases related to LDI companies and requesting the appointment of a referee judge to prioritize these cases for swift resolution. The ministry believes this approach will expedite the recovery process and bring clarity to the legal and regulatory issues. The issue has been further complicated by allegations of misconduct. Sources claim that a policy directive issued by the IT ministry last year was allegedly designed to benefit LDI companies, which led to the removal of the then-secretary. This controversy, along with the pending directive, has left PTA in a stalemate as it seeks to recover dues and ensure compliance with regulatory requirements in the telecom sector.