Following intervention by the Prime Minister of Pakistan on reports of billions of rupees in losses to the national treasury due to the renewal of telecom companies’ licenses, the Ministry of IT and Telecom has reversed its own decision. In this regard, the Ministry has issued an official notification. The notification cites legal concerns and withdraws the letter regarding the renewal of fixed-line telecommunication licenses.
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A few days ago, the Pakistan Telecommunication Authority wrote a letter concerning the renewal of wireless local loop and LDI telecom companies’ licenses. It stated that 50% of the license fees should be collected from the companies simultaneously over a period of more than 30 years, while licenses should be issued without collecting over 42 billion rupees in dues from the companies.
Based on a confidential report from law enforcement agencies, the Prime Minister took immediate action and requested a report. Consequently, the Secretary of IT and Telecom was immediately removed from his position. Responsible sources within the Ministry of IT and Telecom further disclosed that on July 12, the Ministry had issued a letter outlining the renewal process for Long Distance International (LDI) and Fixed Line Local (FLL) service licenses. However, after seeking legal advice from the Ministry of Law and Justice, the government decided to withdraw the letter and review the process.
When contacted, a senior official of an LDI company stated:
Industry insiders say this move is a significant blow to the telecom sector, which has been eagerly awaiting the license renewal process. “This is a disappointing development, and we urge the government to resolve legal issues promptly and transparently,” said a spokesperson for a prominent telecom operator.
The government’s decision to withdraw the letter has raised questions about the future of the license renewal process and its impact on the telecom sector. With licenses set to expire soon, delays could have far-reaching consequences for the industry.
The Ministry of Information Technology and Telecommunication has pledged to take further action based on the legal advice received, but industry stakeholders doubt the government’s ability to resolve the issues swiftly.
