ISLAMABAD/KARACHI: The Pakistan Telecommunication Authority has informed the country's biggest mobile network, Jazz, and second-largest telecoms firm, Telenor, that their licences will stand expired on August 21 if the companies do not agree to pay a renewal fee of $450 million as per the PTA’s terms and conditions, PTA and Jazz officials said this week.
Pakistan’s telecoms market was deregulated in 2004 and foreign firms such as Jazz have invested heavily. But now the company fears the new renewal fee, which it says goes against an agreement struck in 2004, will pose a significant risk to the connectivity of millions of Pakistanis and jeopardize a growing digital economy.
According to PTA figures as of April 2019, Pakistan has 161 million cellular subscribers, with 59.2 million using Jazz and 44.8 million on Telenor.
“The decision by PTA to expire the licences of operators on August 21, 2019, if not renewed on their terms, is indeed concerning,” Ali Naseer, Chief Corporate and Enterprise Officer at Jazz, told Arab News in an interview this week. “This can potentially disrupt services for millions of Pakistani cell phone users.”
A Telenor spokesman did not respond to repeated calls for comment but a PTA directive to Telenor dated July 22 and seen by Arab News orders the company to pay the $450 million renewal fee by the August 21 deadline and on the PTA’s terms, or risk discontinuation of operations.
Mobile technology is the primary means of communication for millions of Pakistanis. Recent intelligence research by the GSM Association, a trade body that represents the interests of mobile network operators worldwide, estimated the total economic impact of mobiles on Pakistan’s economy was $17 billion, or 5.4% of GDP.
In 2017, total direct tax and fee payments by the mobile sector were estimated at $950 million, 29% of operator revenue, and the wider mobile ecosystem contributed a total of $1.9 billion in direct and indirect taxes in 2018, as per the GSM Association. A tax directory issued by the Federal Board of Revenue for tax year 2017 listed Telenor and Jazz among the country's top corporate taxpayers.
Pakistan’s government is currently struggling to lift revenues, cut ballooning public debt and raise foreign reserves. A recently signed loan agreement with the International Monetary Fund is aimed at shoring up fragile public finances and strengthening a slowing economy.
“It’s important that Pakistan doesn’t ... place gaining inflated revenues from spectrum licences above the connectivity of its citizens,” Brett Tarnutzer, Head of Spectrum at GSMA, said. “Spectrum prices and taxes should be set at a sufficiently low level that allows operators to deliver affordable services and deploy mobile broadband widely.”
“NEGLIGENCE AND INCOMPETENCE”
The licences of both Jazz and Telenor were originally set to expire on 25 May. In early May, the two companies took PTA to court after the Authority asked them to pay a $450 million renewal fee, more than double the dollar price at which the operators originally acquired licences at auction in 2004.
At the heart of the court challenge between the telecom firms and the Pakistan government is a 2015 telecommunications policy that replaced a 2004 version and which Jazz and Telenor say outlined the terms and conditions for auctions of new spectrums but did not lay down any guidelines regarding renewals.
Globally, licence renewal terms are to be communicated to operators 18 months before a licence is due to expire. According to PTA documents seen by Arab News, the Authority came up with new terms on May 9, a little over two weeks before the May 25 deadline and after Jazz and Telenor had taken the matter to court.
“That is the first example of negligence or incompetence because now, in 2019, when the renewals were due, we found ourselves in a situation where there is no framework,” Naseer said. “Had they [government] come out with a reasonable policy, we would have accepted that because we want predictability. Jazz is now 25 years in the market, we are one of the largest foreign direct investors in the country, we’re not going anywhere in a hurry. We are beholden to the country and we want to work and progress.”
Jazz also says that it communicated its intention to renew its licence 30 months prior to the May 25 expiry deadline, as specified in the licence terms. PTA was then required to inform the operators about the renewal terms and conditions within three months of receiving their intent for renewal, which the Authority did not. In the absence of a new set of guidelines formulated and communicated within the deadline as set by the law and the licence terms, Jazz and Telenor argued in court that the 2004 licence terms and conditions should continue to apply to the latest renewal.
After several hearings, the Islamabad High Court remanded the case back to PTA last month, asking the Authority to review the terms of renewal with a “fresh eye.” After quasi-judicial hearings for both Jazz and Telenor, PTA concluded on July 22 that the telecom operators would have to pay the set price of $450 million by August 21.
PTA directives to Jazz and Telenor seen by Arab News said payment terms for the $450 million renewal fee would be 100% upfront or 50% upfront with the remaining 50% paid in five equal annual installments on the London Interbank Offered Rate, plus 3%. The payment could be made in USD or its equivalent in Pakistani rupees, calculated at the market exchange rate at the time of payment.
“We are disappointed that PTA has not been able to see our point of view on these renewals,” Naseer said. “We are committed to endeavour towards improved connectivity and an enabling digital environment in Pakistan.”
A PTA spokesman declined repeated requests for an interview and only referred to public documents about the licences.
“EVALUATING ALL OPTIONS”
The decision by Pakistan’s cash-strapped government to set the new renewal fee in US dollars and not in local rupee currency, which has lost about 40 percent against the dollar in the last 20 months, is another major sticking point for the mobile operators.
The 2004 auction for a 15-year licence cost $291 million, equivalent to Rs17 billion at the 2004 exchange rate. But with the rupee plunging to record lows against the dollar, Jazz now faces paying Rs67 billion for $450 million, a 265% increase compared to what Jazz paid in 2004.
Naseer said the company earned and charged customers in local currency, not dollars, and thus setting the renewal fee in dollars was “unsound.”
“We believe in Pakistan and if word gets out that existing investors are being treated like this it makes it very difficult for us to say ‘Pakistan is open for business’,” Naseer said.
Jazz says it is now evaluating the option of renewing its licence at the PTA’s asking price, letting it expire or filing an appeal with the Islamabad High Court before August 22. Telenor’s options are similar.
“Honestly, at this stage we are evaluating all our options,” Naseer said. “Nothing has been ruled out.”
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
- Pakistan’s biggest and second-largest telecom firms have taken the government to court over the renewal process and price
- Companies believe licence price hike goes against a 2004 agreement and have challenged the PTA for setting the price in USD
Pakistan tells OIC conference Israeli military actions driving Middle East instability
- Ishaq Dar tells Istanbul conference Israeli strike on Iran ‘not an isolated event,’ reflects ‘continued impunity’
- He calls on the OIC to play its role in shaping a more just and stable global order for the Muslim world
ISLAMABAD: Pakistan on Saturday voiced alarm over escalating tensions in the Middle East, blaming Israel’s military actions in Gaza and recent strikes in Iran for deepening instability and humanitarian crisis in the region.
Addressing the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Istanbul, Deputy Prime Minister Ishaq Dar reiterated his country’s condemnation of Israel’s attack on Iran.
The high-level conference comes at a moment of crisis for several OIC member states. Two of the bloc’s key countries — Pakistan and Iran — have recently experienced military escalations with regional rivals.
While Pakistan’s brief but intense standoff with India ended in a ceasefire last month, Israel’s strikes on Iranian nuclear and military facilities, launched more than a week ago, have shown no signs of de-escalation.
“Israeli aggression against Iran is not an isolated event,” Dar said in his address to the forum. “It is part of a dangerous and consistent pattern of militarism that Israel has demonstrated across the Middle East.”
“Pakistan remains deeply concerned at the escalating tensions, deepening instability and humanitarian crises across the Middle East,” he added. “What underpins many of these situations is the continued impunity with which Israel is undermining peace and stability of the broader region.”
The Pakistani deputy PM condemned Israel’s “unprovoked aggression” against Iran as a violation of international law and the UN Charter, warning that such actions posed a grave threat to both regional and global peace.
“We can all feel the reverberations of this instability,” he said.
Turning to Gaza, Dar said Israel was waging a “genocidal campaign” against Palestinians, pointing out that over 55,000 people, mostly women and children, had been killed since the start of the conflict in October 2023.
He noted Israel was deliberately blocking life-saving humanitarian aid and targeting relief workers, leaving millions displaced and entire neighborhoods in ruins.
Calling for an immediate and unconditional ceasefire in Gaza, Dar said that lasting peace in the region was impossible without a viable, sovereign Palestinian state based on pre-1967 borders, with Jerusalem as its capital.
He also referenced last month’s military standoff between Pakistan and India, telling the conference participants that Pakistan had shot down six Indian fighter jets in the confrontation.
He said that his country was committed to regional stability and warned that India’s unilateral actions — including the suspension of the Indus Waters Treaty — were further escalating tensions.
“Pakistan will not allow India to stop water for our people,” he said. “It will be treated as an act of war.”
Dar also urged the OIC to assert itself as a collective voice for the Muslim world.
“The OIC has a crucial role to play in streamlining the rapidly evolving and deteriorating global order to the benefit of the Muslim world,” he added.
Pakistan highlights India’s ‘brazen disregard’ for international law over Indus treaty stance
- Pakistan says India’s treaty suspension shows it cannot be trusted to honor legal obligations
- The statement follows Indian home minister’s threat to divert river waters, ‘starve’ Pakistan
ISLAMABAD: Pakistan on Saturday accused India of showing a “brazen disregard” for international agreements after New Delhi said it would not restore the decades-old Indus Waters Treaty and divert river waters for internal use.
India put into “abeyance” its participation in the 1960 treaty, which governs the distribution of the Indus river system between the two countries, after 26 civilians in Indian-administered Kashmir were killed in an April gun attack.
India blamed Pakistan for the incident, though it denied any involvement. The accord remains dormant since then despite a ceasefire agreed upon by the two nuclear-armed neighbors last month following their worst fighting in decades.
Islamabad’s statement over the issue came after Indian Home Minister Amit Shah gave an interview to the media, saying New Delhi would not reinstate the treaty that guarantees water access for 80 percent of Pakistan’s farms through rivers originating in India.
“The statement reflects a brazen disregard for the sanctity of international agreements,” Foreign Office Spokesperson Shafqat Ali Khan said in a statement. “The Indus Waters Treaty is not a political arrangement, but an international treaty with no provision for unilateral action.”
“India’s illegal announcement to hold the Treaty in abeyance constitutes a clear violation of international law, the provisions of the Treaty itself, and the fundamental principles governing inter-state relations,” he continued. “Such conduct sets a reckless and dangerous precedent — one that undermines the credibility of international agreements and raises serious questions about the reliability and trustworthiness of a state that openly refuses to fulfill its legal obligations.”
The statement further said India’s attempt to “weaponize water for political ends” was irresponsible and in violation of established norms of state behavior.
It called on India to “immediately rescind its unilateral and unlawful stance” and restore the “full and unhindered implementation” of the treaty.
“Pakistan remains firmly committed to the Treaty and will take all necessary measures to protect its legitimate rights and entitlements under it,” the spokesperson added.
Earlier in the day, the Indian minister said in his interview New Delhi would divert water by constructing a canal, and that Pakistan would be “starved” of water it had been receiving “unjustifiably.”
While Islamabad has pursued diplomatic channels to raise awareness of the issue globally, it has also warned that any Indian attempt to block river flows will be treated as “an act of war.”
With input from Reuters
Pakistan, Turkiye leaders vow diplomatic push to halt Israel’s military campaigns in Mideast
- The Middle East situation came up during a meeting between Ishaq Dar, Asim Munir and Recep Tayyip Erdoğan
- Both sides stressed the urgency of halting ‘Israeli aggression’ in Gaza, ensuring unhindered humanitarian aid
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar and Army Chief Field Marshal Asim Munir met Turkish President Recep Tayyip Erdoğan on Saturday and agreed to step up diplomatic efforts to halt Israel’s military campaigns in the Middle East, as regional tensions threaten to escalate further.
The meeting took place on the sidelines of the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Istanbul, where Muslim-majority nations are grappling with regional crises.
Two of the bloc’s key members — Pakistan and Iran — have recently faced military escalations with regional adversaries. While Pakistan’s brief but intense standoff with India last month ended in a ceasefire, Israel’s strikes on Iranian nuclear and military sites, launched over a week ago, have shown no signs of letting up.
“The leaders [of Pakistan and Turkiye] expressed strong condemnation of the continued Israeli attacks in blatant violation of fundamental principles of international law, reiterated support for Iran’s sovereignty, territorial integrity and its right to self-defense under the UN Charter, agreed to continue diplomatic efforts to de-escalate the situation and urged the international community to play its part in restoring peace and stability in the region,” the Foreign Office in Islamabad said in a statement.
“Both sides emphasized the urgency of galvanizing efforts to bring an immediate halt to the Israeli aggression in Gaza and unhindered provision of humanitarian assistance to the besieged people of Gaza,” the statement added.
As Iran and Israel continue to trade fire, European and regional powers are racing to contain the conflict and bring Iran back to the negotiating table to resume nuclear negotiations that broke down when Israel launched its strike on Tehran and other cities.
During Saturday’s meeting, Dar underscored Pakistan’s commitment to strengthening bilateral ties with Turkiye.
The two sides reaffirmed their desire to deepen cooperation, particularly in light of Turkiye’s diplomatic support for Pakistan during last month’s flare-up with India, which saw both nuclear-armed neighbors exchange missiles, drone fire and airstrikes before tensions subsided under international pressure.
Dar also congratulated Erdoğan on receiving an award from the Islamic Cooperation Youth Forum in recognition of his leadership and the successful organization of the ongoing OIC ministerial session.
PM Sharif orders early Hajj planning, calls for private scheme reform
- A major portion of the quota for private Hajj operators remained unutilized this year
- Shehbaz Sharif says no negligence in serving Hajj pilgrims next year will be tolerated
KARACHI: Prime Minister Shehbaz Sharif on Saturday directed the religious affairs ministry to begin preparations for the 2026 Hajj immediately, while calling for urgent reforms to the country’s private Hajj scheme following a situation that left thousands of pilgrimage slots unused this year.
Pakistan received a quota of 179,210 pilgrims from Saudi Arabia for Hajj 2025, which was evenly divided between the government and private Hajj operators.
While the government filled its full allocation of over 88,000 pilgrims, a major portion of the private quota remained unutilized due to delays by companies in meeting payment and registration deadlines.
Private operators, however, blamed the situation on technical glitches such as payment issues and communication breakdowns.
“Preparations for next year’s Hajj operation must begin immediately,” the prime minister said, according to a statement released by his office.
“The operational plan should be developed in accordance with the Hajj policy issued by Saudi Arabia,” he continued. “No negligence in serving pilgrims next year will be tolerated.”
Sharif also emphasized the need to “regularize” the private Hajj scheme.
Previously, Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, had confirmed that over 67,000 private-sector slots went unused, despite a last-minute effort to reclaim some of the allocation.
The shortfall prompted criticism and concerns over regulation and the capacity of private Hajj companies.
The prime minister has also asked the religious affairs ministry to submit a detailed Hajj action plan with clear deadlines and start preparing for next year’s Islamic pilgrimage.
PM Sharif seeks action after two police officers shot dead in northwest Pakistan
- The officers had stopped to get water when they were ambushed by gunmen on a motorbike
- The prime minister praises the efforts of police officials fighting militancy on the front lines
PESHAWAR: Two police officers were shot and killed when unidentified assailants opened fire on their mobile patrol van in Swabi, a district in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, with Prime Minister Shehbaz Sharif on Saturday directing authorities to bring the perpetrators to justice.
The attack took place around 10:00 p.m. Friday night near a roadside kiosk within the jurisdiction of the Gadoon police station, according to Abdul Majid, a senior police officer in Swabi.
The officers had briefly stopped to get water when they were ambushed by gunmen on a motorbike.
“Terrorists riding a motorbike opened fire on the police party,” Majid told Arab News over the phone. “Two officers were martyred on the spot.”
Militant attacks in KP, particularly by Tehreek-e-Taliban Pakistan (TTP), have increased in recent years, with security forces, government officials and civilians often targeted.
The Pakistani military and law enforcement agencies have launched intelligence-based operations to curb the violence, but attacks have persisted.
Following the shooting, a large police contingent was deployed to the area to secure the scene, collect forensic evidence and launch a search operation.
No arrests have been made so far, and the investigation is ongoing. No group has so far claimed responsibility for the attack.
Prime Minister Shehbaz Sharif condemned the Swabi attack and expressed deep sorrow over the deaths of the police officers.
“We pay tribute to the martyrs and pray for patience for their families,” he said in a statement issued by the Prime Minister’s Office.
Sharif directed authorities to investigate the incident and ensure those responsible are brought to justice.
“The war against terrorism will continue until this scourge is eradicated from the country,” he said, praising the efforts of police officers fighting on the front lines.
