Government Move Could Halt 50% of Pakistan’s Telecom and ATMs

Chairman of the Pakistan Telecommunication Authority (PTA), Major General (R) Hafeez Ur Rehman, told the National Assembly’s Standing Committee on IT, that revoking licenses of defaulting Long Distance and International (LDI) operators could disrupt 50% of mobile services and block 40% of ATMs across the country.

Nine companies are involved, with five already paying Rs. 64 billion. Of the remaining Rs. 24 billion, Rs. 8.2 billion is linked to companies open to paying in installments, while others are refusing.

He noted that PTA has no legal power to allow installment payments on its own due to legal constraints requiring coordination with the IT Ministry as affirmed by Minister of State for IT, Shaza Khawaja. She warned that such a move could set a dangerous precedent. Even if payments are made, they’d be locked in escrow accounts and couldn’t be used until legal proceedings end.

Show-cause notices have since been issued, but the matter is in court, and action has been paused on court orders. The committee has asked PTA and the ministry to keep engaging with the companies involved. If court rulings allow, license cancellations may still go ahead.