Pakistan and the United Arab Emirates (UAE) recently engaged in a high-level dialogue to address longstanding challenges related to Pakistan Telecommunication Company Ltd (PTCL) and to explore ways to increase UAE investments in Pakistan’s telecom sector.
High-Level Meeting in Dubai
The discussions took place between Pakistan’s Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar and H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of Abu Dhabi’s Department of Finance and Etisalat (e&), in Dubai. The meeting underscored the enduring ties of friendship and cooperation between the two nations, serving as a strong foundation for further economic collaboration.
Focus on PTCL and Investment Expansion
Both parties examined opportunities to broaden UAE investments in Pakistan and deliberated on enhancing trade and economic relations to foster mutual prosperity. The talks also concentrated on Etisalat’s ongoing investment in Pakistan and plans to expand its role through its significant stake in PTCL.
Commitment to Resolving PTCL Issues
The meeting reaffirmed directives from the leadership of both countries to strengthen economic and trade ties. Discussions included resolving operational bottlenecks and addressing the future growth prospects of PTCL. Senator Dar emphasized the importance of promptly settling outstanding issues and collaborating closely to enhance bilateral economic relations, build on historic goodwill, and create new opportunities for investment and joint ventures. H.E. Jassem Mohammed Bu Ataba Al Zaabi expressed full support and commitment to these shared goals.
Background on PTCL Dispute
In 2006, Pakistan privatized PTCL by selling a 26% stake and management control to Etisalat International Pakistan for $2.6 billion. However, the deal has faced challenges, particularly concerning the transfer of PTCL properties. Approximately $799 million remains withheld by Etisalat due to unresolved property transfer issues. The Pakistani government has been criticized for not transferring all properties as stipulated in the original agreement.
Efforts to resolve this dispute have continued over the years, including recent confidential talks. Despite the long duration of the disagreement, Pakistan has maintained its position against pursuing legal action.
Significance of the Visit
Senator Dar’s visit to Dubai aimed to engage directly with Etisalat’s management to resolve the longstanding dispute and strengthen economic cooperation. This visit comes amid a sensitive geopolitical context in the Middle East and ongoing shifts in regional relations.
Both sides agreed to continue joint efforts to swiftly address outstanding matters and actively promote initiatives that expand economic and trade cooperation, aligned with the guidance of their respective leaderships.
