On Monday, the Pakistan Telecommunication Authority (PTA) warned the Senate Standing Committee on IT and Telecom about potential severe network disruptions across Pakistan if Long Distance International (LDI) licences are not renewed promptly. The PTA’s alarm comes amid ongoing issues with the renewal of both LDI and Fixed Line Local Loop (FLL) licences, which are crucial for maintaining the country’s telecommunications infrastructure.
The Senate Standing Committee, chaired by Senator Palwasha Mohammad Zai Khan, convened to discuss the critical issue of licence renewals. Major General (retd) Hafeezur Rehman, PTA Chairman, addressed the committee, outlining the urgency of the situation. He emphasized that the issue predominantly impacts four major companies, including Wateen, which operates an extensive fibre optic network across 24 cities in Balochistan and interior Sindh. Wateen’s network is integral to Pakistan’s communications infrastructure, connecting with 44 banks and NADRA.
Wateen’s licence expired in July 2024, but the company obtained a court stay order allowing it to continue operations temporarily. The committee was informed that the licences for several LDI companies expired between July and August, and approximately 15 cases are currently pending in court. Despite some companies being ready to pay their outstanding dues, others have filed legal challenges that complicate the renewal process.
The PTA Chairman noted that while companies were allowed to pay their dues in installments in 2020, this relief cannot be granted this year. The committee discussed the Rs54 billion exemption sought by the LDI companies, which has faced opposition from officials at the Ministry of Information Technology and Telecommunication (MoITT). The former IT secretary’s policy directive on the matter has been contested, with claims that it exceeded the secretary’s authority.
Senator Palwasha Mohammad Zai Khan raised concerns about the potential impact on the national network if the licences are not renewed. She emphasized that suspending LDI company operations could lead to significant network disruptions, which could take considerable time to address. PTA officials confirmed that PTCL alone cannot handle the shortfall, further stressing the urgency of resolving the issue.
The Secretary of MoITT suggested that getting the stay orders vacated by the court might help resolve the matter. The committee called for a clear policy directive from the federal government to prevent similar issues in the future and recommended that the PTA strengthen its legal team to expedite court proceedings.
The committee also addressed the composition of the PTCL Board and the remuneration limits for government officials serving on company boards, set at Rs1 million annually. Additionally, the qualifications and criteria for hiring consultants and advisors were discussed, with the Secretary explaining that all such positions are filled on a contract basis.
The Special Secretary of the Establishment Division provided details on the hiring process for the MoITT Secretary, noting that 77 applications were scrutinized, leading to 15 candidates being shortlisted.
Senator Palwasha requested a detailed presentation of the criteria used for shortlisting candidates in the next meeting. The committee also expressed concerns about accountability related to the former IT secretary’s policy directive issued without Cabinet approval and requested a list of individuals responsible for overseeing the matter.
The committee urged the federal government to provide a clear policy direction to avoid further complications and potential losses. Members recommended that the PTA enhance its legal team to address ongoing court stay orders promptly. Without timely resolutions, the suspension of LDI company operations could further disrupt the telecommunications network, causing significant inconvenience and damage to the country’s communications infrastructure.
