The Pakistan Telecommunication Authority (PTA) has cautioned the Senate Standing Committee on IT and Telecom about potential significant disruptions in the country’s telecommunications network if Long Distance International (LDI) companies’ licenses are not renewed in a timely manner.
During a briefing, PTA officials expressed concerns that if foreign companies cease operations due to unpaid dues, it could take considerable time to restore the network. The Pakistan Telecommunication Company Limited (PTCL) lacks sufficient capacity to handle the shortfall on its own, they added. PTA Chairman Major General (R) Hafeezur Rehman informed the committee that while five LDI companies are willing to settle their dues, several others have filed legal challenges. The licenses for these companies were set to expire between July and August, and currently, about 15 cases are pending in court.
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The PTA Chairman also highlighted that, in 2020, companies were permitted to pay their dues in installments, but this concession would not be available this year.
A key issue discussed was the Rs. 54 billion exemption sought by LDI companies. A previous IT Secretary had issued a policy directive regarding this matter, but officials from the IT Ministry opposed it, arguing that the former secretary did not have the authority to grant such exemptions. The committee chairman questioned the legal basis of the ministry’s stance, to which ministry officials responded that the ex-secretary had been implicated in several corruption cases.
One senator emphasized that halting LDI operations could lead to widespread network outages. PTA officials confirmed this, explaining that if operations are interrupted, it would take time to restore services, and PTCL alone does not have the capacity to meet the increased demand. The committee urged the federal government to provide clear policy guidance to prevent potential losses.
Furthermore, committee members advised the PTA to reinforce its legal team, as ongoing court stay orders have caused delays. Without swift resolution, licenses might be canceled, exacerbating the situation. A prompt decision is needed regarding which companies will receive licenses and at what cost.
