The Auditor General of Pakistan has raised serious concerns regarding the Pakistan Telecommunication Authority (PTA) for allegedly modifying the clauses of Long-Distance and International (LDI) licenses without obtaining the required approval from the federal government.
These modifications, specifically the addition of clauses 3.2.6 to 3.2.8 under the “Network Rollout Obligations” section, were made to the LDI license issued to M/s Zeta Technologies (Pvt.) Ltd. on January 5, 2023. The Auditor General’s audit report argues that this action breaches the Telecommunication Policy 2015 and the De-Regulation Policy 2003. According to the report, Rule 5.2.3 of the Telecommunication Policy 2015 clearly mandates that any changes to the licensing regime must involve consultation with relevant sector stakeholders and receive approval from the federal government.
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In addition, Rule 4.2.1 (b) of the De-Regulation Policy 2003 allows licensees to lease infrastructure from PTCL or other owners on non-discriminatory, mutually agreed terms. Long-term leases of five years or more are considered acceptable in lieu of ownership. The PTA’s unilateral alteration of the LDI license template, without adhering to these established procedural requirements, has raised concerns about potential negative impacts on the telecom sector.
The Auditor General cautioned that these unapproved changes could harm the business interests of telecom infrastructure providers, potentially violating the rights of licensees as set forth in Sections 5(b) and 6(a) of the Pakistan Telecommunication (Re-organization) Act, 1996. These sections emphasize the importance of enforcement, monitoring, and protection of licensee rights. The audit report raises questions about the transparency and legality of the PTA’s regulatory process, given that these changes were made without federal approval.
This issue was formally brought to the attention of PTA management and the Principal Accounting Officer (PAO) in November 2023. The PTA responded by asserting that the new terms added to the LDI license template did not alter the scope of the license or the broader licensing regime. The authority claimed that these changes were intended to enhance the percentage of fiber-to-the-tower/site (FTTT/FTTS) installations, aimed at modernizing telecommunications systems and services.
However, the Auditor General found this justification unsatisfactory, arguing that any such changes should have been made in consultation with stakeholders and with the approval of the federal government. The matter was subsequently discussed in a Departmental Accounts Committee (DAC) meeting on December 20, 2023, where the DAC instructed the PTA to share the outcomes of its review with the Cabinet Division and have them verified by the Audit. As of the finalization of the report, no further progress has been reported.
