Etisalat has Pakistan on hold

Etisalat has become embroiled in a US$1 billion (Dh3.67bn) payment dispute with the Pakistan government over its 2006 purchase of a stake in Pakistan Telecommunication Corporation (PTCL), the country’s largest telecoms operator.

Etisalat agreed to pay $2.6bn to the government in instalments for a 26 per cent stake in PTCL in January 2006. But it has withheld payments for more than a year because of a dispute over the ownership of several properties in Pakistan that were part of the deal.

“Transfer of land is part of the contract. It says if it doesn’t happen we can stop the payments,” said Mohammed Omran, the chairman of the UAE’s largest telecoms operator.