Pakistan, UAE achieve understanding over $800mln push

ISLAMABAD: UAE-based telecom firm Etisalat has consented to discharge a remarkable installment identified with its securing of state-possessed PTCL in the wake of keeping down sum on non-exchanged resources from $800 million stuck for over 10 years, a senior authority said on Friday.

Secretary Privatization Rizwan Malik revealed to The News that Etisalat consented to assess non-exchanged properties and would deduct the sum from unpaid $800 million.

"The organization would likewise direct physical confirmation of properties whose possession titles have just been moved in the following three months," Malik said.

Etisalat procured 26 percent offers of Pakistan Telecommunication Company Limited (PTCL) alongside the administration control in a privatization arrangement of $2.6 billion of every 2006 when the recently designated Adviser to the Prime Minister Imran Khan on Finance Hafeez Sheik was the privatization serve.

The Middle East telecom mammoth, nonetheless, paid just $1.8 billion to Pakistan around then with the rest of the sum to be paid in nine portions.

The debate rose when possession titles of 34 properties were not exchanged to the telecom organization. Islamabad wouldn't like to exchange these properties to Etisalat for legitimate reasons.

The outside firm was before demanding that every one of the properties must be exchanged to PTCL. Up until this point, 3,214 properties titles have been exchanged to the acquirer of the offers.

Sources said senior authorities of Etisalat held a gathering not long ago with the Privatization Commission's authorities and educated them that it employed a lawful firm Khan Associates for valuation of the 34 properties.

In January 2015, the Finance Ministry composed a letter to the escrow account specialist of London-based HSBC Bank, saying that 3,214 properties had been exchanged to PTCL, while remaining 34 couldn't be exchanged because of different reasons, including lawful hindrances.

It was additionally educated that autonomous evaluators decided money related worth of the properties at $92.4 million, as indicated by the letter, titled 'second setback properties', accessible with this copyist.

The $800 million have been lying in the escrow represent over 10 years and it would be exchanged to Pakistan after the settlement of the issue.

Secretary Malik further said the legislature would probably total some privatization exchanges, including SME Bank Limited, First Women Bank Limited, 1,223 megawatts Balloki Power Plant, 1,230MW Haveli Bahadur Power Plant, Mari Petroleum Limited (divestment of residual offers), Jinnah Convention Center, Islamabad, and Services International Hotel by the yearend.

Prior, Malik told the Senate Standing Committee on Privatization that the legislature was attempting endeavors to 'genially' resolve the issue with the UAE's organization. The board of trustees met with Senator Mir Muhammad Yousaf Badini in the seat.

The advisory group was additionally educated about the privatization of four government holds up in Murree with the region of 16.8 kanals, which was sold in 1997.

It was informed that the Privatization Commission decided its incentive at Rs82.311 million, while it was sold at Rs42 million through open offering, which was not a productive exchange.