PTA Seeks Policy Directive on Using Escrow Accounts for Recovering LDI Fees

The Pakistan Telecommunication Authority (PTA) has sent a fresh letter to the Ministry of Information Technology (IT) regarding the renewal of Long Distance and International (LDI) companies’ licenses and the collection of outstanding dues. In its correspondence, PTA has requested a policy directive to adjust dues from companies’ escrow accounts. The PTA’s letter highlights that adjustments for three LDI companies have already been made from their escrow accounts. Additionally, the letter states that some companies have verbally agreed to adjust their dues from these accounts. However, the PTA emphasized that a formal policy directive from the federal government is necessary to proceed with further adjustments from the escrow accounts. According to the PTA, the case for the adjustment of dues from escrow accounts was forwarded to the Ministry of IT following the consent of one company, 4B Gentle. However, the ministry has not yet responded to PTA’s request. The PTA noted that it has informed the IT ministry about the consent of other LDI companies, but no official response has been received. Previously, a similar case involving dues collection from the escrow account of ADG LDI was also sent to the Ministry of IT. The ministry had agreed to the deduction of dues from ADG’s escrow account. PTA has now reiterated its demand that the federal government issue a policy directive outlining the procedure for such adjustments, stressing that withdrawals from escrow accounts can only be made with the mutual consent of both parties. LDI companies owe a total of Rs. 24 billion in Universal Service Fund (USF) APC charges, along with an additional Rs. 54 billion in late payment surcharges. The PTA has refused to renew the licenses of these companies until all outstanding dues are cleared. Some LDI companies, whose licenses have expired, have obtained stay orders from the court to continue their operations without settling their dues.