Deputy Prime Minister and Foreign Minister Ishaq Dar arrived in Dubai on Friday following his participation at Davos in Switzerland for a crucial official visit aimed at resolving a long-standing financial dispute with UAE-based telecom firm Etisalat. The focus of the visit was to address the withheld payment of approximately $800 million related to the privatisation of Pakistan Telecommunication Company Limited. According to the Ministry of Foreign Affairs, Ishaq Dar held official meetings with Etisalat management to unlock funds and clarify outstanding property transfer issues from the original privatisation agreement.
The dispute dates back to the 2005 privatisation of PTCL, in which Etisalat International Pakistan acquired a 26 percent stake and management control of the company for $2.6 billion. While most payments were completed, a substantial portion remained withheld due to disagreements over the transfer of PTCL properties specified in the deal. The original agreement included 3,384 properties, but only 3,248 were actually available, and 38 could not be transferred, leading to a prolonged disagreement between the two parties. Multiple rounds of negotiations over the years did not yield a resolution, and Pakistan chose to avoid international litigation, preferring diplomatic engagement to settle the matter.
During the visit, Ishaq Dar met with Etisalat Chairman Jassem Mohammed Bu Ataba Al Zaabi on Saturday, January 24, 2026, where both leaders discussed the operational and financial aspects of the dispute. The meeting resulted in a commitment from both sides to promptly resolve outstanding matters and move forward collaboratively. Beyond settling past disagreements, discussions also explored future investment opportunities. Etisalat plans to expand its presence in Pakistan through its existing PTCL stake, and both parties reviewed broader avenues for trade cooperation and joint ventures. Pakistan continues to encourage private sector investment and support from partner countries, building on existing economic collaboration with the UAE.
The meetings were described as constructive, with both sides emphasising historic goodwill and a shared interest in strengthening bilateral economic relations. Ishaq Dar highlighted Pakistan’s commitment to facilitating investment by international partners, while Al Zaabi confirmed Etisalat’s readiness to contribute to sectoral growth. Key officials accompanying the Pakistani delegation included Ambassador Shafqat Ali Khan, Trade Counsellor Ali Zeb, and Acting Consul General Fawad Ali Khan, while Etisalat CEO Masood Mohamed Shariff supported the chairman during discussions. The successful dialogue signals progress in resolving a two-decade-old dispute while setting the stage for increased UAE investment and cooperation in Pakistan’s telecom sector.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
