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PTA Refuses Installment Plan to Collect Pending Dues From LDI Companies

5 min read
Legal Expert
PTA Refuses Installment Plan to Collect Pending Dues From LDI Companies
A meeting of the Sub-Committee of the National Assembly Standing Committee on Information Technology was held under the chairmanship of Umair Khan Niazi. The key agenda items included the recovery of outstanding dues from Long Distance and International (LDI) telecom companies and the renewal of their licenses. During the meeting, PTA Chairman made it clear that the authority does not have the mandate to allow LDI companies to pay their dues in installments. He stated that dozens of meetings had already been held with the defaulters, but their perspectives on dues payment varied. He further said that after hearing the stance of the defaulting companies, PTA has issued letters directing them to pay all outstanding amounts, including late payment charges. Representatives of the LDI companies proposed a plan to pay the principal amounts in installments and expressed their willingness to submit post-dated cheques. However, PTA maintained that late payment charges must also be deposited in an escrow account, and insisted that all dues be paid in full as per the original terms. The PTA Chairman revealed that five LDI companies are still unwilling to pay principal dues amounting to Rs. 15 billion. The representatives of the LDI firms raised concerns over the government’s unclear policy regarding license renewal, calling for clarity and consistency. Secretary IT acknowledged that the issue of LDI dues is complex, with each company having its own viewpoint. He noted that any government decision on this matter would also influence payment patterns in other sectors facing similar issues. After both PTA and LDI company representatives stuck to their respective positions, the subcommittee decided to seek an opinion from the Ministry of Law regarding the recovery mechanism. Committee Chairman Umair Khan Niazi directed the authorities to engage with the Attorney General to expedite the legal proceedings related to spectrum disputes pending in courts and ensure effective follow-up for early resolution. The meeting was attended by the Secretary IT, Special Secretary IT, Chairman of the Pakistan Telecommunication Authority (PTA), and other relevant officials.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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