Another attempt to recover Rs76billion in arrears from Long Distance and International (LDI) companies failed after the completion of an individual hearing of the matter at the Pakistan Telecommunication Authority (PTA).

The LDI companies refused to make any payment until the Supreme Court delivered its decision. The PTA decided in principle not to renew the licences of these companies until the arrears were recovered.

According to sources, the Pakistan Telecommunication Authority chairman, Major General (retd) Hafeez Ur Rehman, rejected the demand for temporary and conditional renewal of the licences of LDI companies. The Ministry of Information Technology appeared likely to refer the matter to the Law Ministry or the Prime Minister.

The LDI companies owed a principal amount of Rs24 billion, with arrears totalling Rs52billion. According to sources, the companies raised questions over the principal amount of Rs24billion and claimed that the PTA’s calculation was incorrect.

They asserted that the actual principal amount stood at only Rs4billion.

The LDI companies stated, “A maximum fine of Rs35 million may be imposed under the Act. Adding billions of rupees to this is not acceptable.”

They further demanded that the licences be renewed temporarily for a period of two to four years. In case of continued delay in judicial decision, they requested that the matter be reviewed once more.

Chairman Hafeez Ur Rehman responded, “It is not possible to renew licences without payment of all arrears. The PTA has no authority to waive fines and it cannot act independently.”

According to sources, the Ministry of Information Technology also avoided making an independent decision regarding the arrears of LDI companies. The PTA chairman held the opinion that a solution to the issue could only be achieved with the guidance and approval of the federal cabinet.

According to sources, the matter concerning the payment of arrears would now be forwarded either to the Law Ministry or to the prime minister.