Deputy Prime Minister and Foreign Minister Ishaq Dar arrived in Dubai on Friday for official discussions with the management of UAE based telecom operator Etisalat, focusing on resolving the long standing financial dispute linked to the privatisation of Pakistan Telecommunication Company Limited. According to reports cited by Business Recorder, the talks aim to address the approximately $799 million that has remained withheld since the 2006 privatisation transaction, a matter that has continued to weigh on Pakistan’s telecom sector and broader investment climate.
The Ministry of Foreign Affairs confirmed that Dar travelled to Dubai directly from Davos, Switzerland, where he had been attending international engagements, and is scheduled to hold a series of official meetings during his visit, including in depth discussions with Etisalat’s leadership. The renewed dialogue reflects Pakistan’s continued effort to bring closure to one of the country’s most prolonged privatisation related disputes, which has remained unresolved for nearly two decades despite repeated negotiations and technical reviews.
Under the 2006 privatisation agreement, Pakistan sold a 26 percent stake in PTCL along with management control to Etisalat International Pakistan for $2.6 billion. While the majority of the payment was completed at the time, around $800 million was retained by Etisalat due to disagreements over the transfer of PTCL owned properties listed in the deal. The agreement required the transfer of 3,384 properties; however, government officials have stated that only 3,248 were available on ground, while 38 properties could not be transferred, creating a compliance gap that has remained at the heart of the dispute. This shortfall led Etisalat to withhold the remaining funds pending resolution, with both sides maintaining differing interpretations of contractual obligations.
Over the years, multiple rounds of negotiations have taken place between Pakistani authorities and Etisalat representatives in an effort to settle the property transfer issue and unlock the outstanding payment. Reports in 2025 indicated that in camera discussions were held to explore compromise options, signaling a renewed push toward a mutually acceptable settlement. Despite the prolonged stalemate, officials have consistently emphasized Pakistan’s preference for resolving the matter through dialogue rather than international arbitration or legal proceedings, underscoring a broader strategy of maintaining investor confidence and diplomatic relations with the United Arab Emirates.
Government sources have also linked the latest round of talks to wider efforts aimed at strengthening economic cooperation between Pakistan and the UAE, particularly in sectors such as telecommunications, infrastructure, and digital services. Bringing closure to the PTCL privatisation dispute is seen as a key step in improving the country’s investment environment, demonstrating policy stability, and clearing a major legacy issue that has long been viewed as a cautionary example by foreign investors assessing opportunities in Pakistan’s telecom market.
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