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Senate Committee Reviews LDI Telecom Dues and Regulatory Challenges

  • March 24, 2025
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Senate Standing Committee on Information Technology convened a session to deliberate on the long-standing issue of outstanding dues owed by Long-Distance and International (LDI) telecom companies. The discussion, led by PTA Chairman, highlighted ongoing regulatory challenges and potential measures for financial recovery within the sector. During the briefing, PTA chairman revealed that the authority is actively reviewing cases of defaulting LDI operators, with a commitment to conducting individual hearings before reaching a final decision. The gravity of the issue was underscored by the fact that 112 cases linked to LDI companies are currently under litigation.

To address the mounting dues, the PTA is evaluating two primary options. The first approach requires companies to settle the principal amount in a lump sum, allowing the remaining dues to be paid in installments. The second, more stringent measure under consideration involves the potential cancellation of licenses for telecom operators failing to comply with regulatory payment obligations. The discussion also touched upon the renewal of telecom licenses, with PTA chairman clarifying that companies seeking license extensions must first clear any outstanding dues. This position underscores the government’s stance on ensuring financial accountability in the telecom sector before granting further operational privileges.

Further complicating the matter, the committee directed officials from the Ministry of Information Technology to attend the next session to provide a comprehensive explanation of the LDI issue. The chairperson of the committee questioned the intent and content of the ministry’s official communication regarding the matter, demanding greater transparency and clarity. Beyond financial concerns, the session also broached the issue of accountability within the IT sector. The committee inquired about actions taken against the former IT secretary, pressing for details on whether any cases had been referred to NAB or FIA beyond the official’s removal from office. This line of questioning suggested a broader effort to scrutinize past regulatory decisions and the enforcement of telecom policies.

The committee also voiced concerns over the conduct of the federal IT minister during previous discussions, condemning the behavior displayed in official sessions. The remarks reflected the growing tension within regulatory circles as stakeholders navigate the complexities of telecom governance. As the government moves forward with efforts to address financial discrepancies and enforce compliance in the telecom sector, the debate over LDI dues is expected to remain a key focus in upcoming committee sessions. With billions in outstanding payments at stake, the decisions made in these proceedings could have lasting implications for the structure and sustainability of Pakistan’s telecom industry.

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