'50% mobile services, 40% ATMs': PTA warns of major disruptions if LDI licenses revoked

The Chairman of the Pakistan Telecommunication Authority (PTA), Major General (Retired) Hafeez Ur Rehman, has cautioned that revoking the licences of defaulting Long Distance and International (LDI) operators could significantly impact mobile and financial services across the country. He warned that such actions could disrupt 50 percent of mobile services and block 40 per cent of ATMs nationwide.

While briefing the National Assembly Standing Committee on Information Technology on Monday, the PTA chief revealed that nine LDI companies currently owe substantial dues. Of these, five operators have already paid Rs. 64 billion, while the remaining principal amount stands at Rs. 24 billion.

Among the defaulting companies, five have expressed a willingness to settle Rs. 8.2 billion through instalments. However, the remaining Rs. 16 billion is linked to companies refusing to pay their dues. Show-cause notices have been issued, and license cancellations remain a possibility, the PTA chairman stated. However, he clarified that the authority lacks the legal jurisdiction to approve instalment-based recoveries independently.

Federal Minister of State for IT, Shaza Fatima, echoed these concerns, warning that allowing payments in instalments could set a precedent across various sectors, potentially creating regulatory complications. She further explained that even if the outstanding amounts are recovered in parts, they would be held in an escrow account until legal proceedings conclude, rendering them unusable by the government in the meantime.

Shaza Fatima also emphasised that the PTA cannot act unilaterally and must work in coordination with the IT Ministry. She pointed out that ongoing court cases have stalled any decisive action, as the judiciary has explicitly ordered a freeze on proceedings for now.

The committee chair urged the PTA and the IT Ministry to engage with the LDI companies to seek a resolution. Concluding the discussion, the PTA chairman stated that a final decision, including potential license cancellations, would be made once all legal hearings are completed. However, he cautioned that if the government loses the court cases, any recovered funds would need to be returned.