Deputy Prime Minister and Foreign Minister Ishaq Dar has arrived in Dubai to engage in critical discussions with Etisalat’s management, aiming to resolve a protracted dispute stemming from the 2006 privatization of Pakistan Telecommunication Company Ltd (PTCL).
The UAE telecom firm has withheld approximately USD 799 million due to Pakistan’s failure to transfer certain properties as per the agreement. This visit, following Dar’s trip from Davos, underscores Pakistan’s commitment to amicable settlements without legal escalation.
Background of the Privatization Deal
In 2006, Pakistan sold a 26 percent stake and management control of PTCL to Etisalat International Pakistan for USD 2.6 billion. The deal was initially celebrated as a major economic reform but soon faced hurdles over property transfers.
The agreement stipulated the handover of 3,384 PTCL properties, but only 3,248 were available on the ground. Thirty-eight properties could not be transferred, leading to ongoing financial withholding by Etisalat. This has created a 16-year impasse, with Etisalat retaining around USD 800 million.
Current Efforts and Broader Context
Dar is leading high-level meetings with UAE officials and Etisalat to address these issues. Pakistan has opted against pursuing international litigation, favoring dialogue instead. Fresh in-camera talks were reported in 2025, indicating renewed momentum.
The visit occurs amid sensitive regional dynamics in the Middle East. Pakistan, the UAE, and others have joined Gaza’s Board of Peace at US invitation. Strains between Saudi Arabia and the UAE add complexity to bilateral ties. Officials emphasize strengthening economic relations with the UAE.
The Foreign Office confirmed Dar’s engagements focus on Etisalat, without details on UAE government meetings. Analysts view this as a pivotal moment for resolving the dispute. Successful talks could unlock withheld funds and boost investor confidence.
Pakistan accuses itself of delays in property transfers under the 2006 terms. Etisalat’s stance remains firm on fulfilling original agreement conditions. This resolution push aligns with broader economic diplomacy efforts.