PTA warns LDI license cancellations could cripple mobile services and ATMs across Pakistan

The Pakistan Telecommunication Authority (PTA) has issued show cause notices to nine Long Distance International (LDI) companies, threatening to cancel their licenses if their outstanding dues are not cleared.

PTA Chairman Major General (retd) Hafeez-ur-Rehman warned that such cancellations could severely disrupt the country’s telecom infrastructure, potentially affecting 50% of mobile services and causing 40% of ATMs to go offline.

The PTA provided the briefing to the National Assembly Standing Committee on Information Technology and Telecommunication, where Rehman revealed that while five LDI companies had paid a total of PKR 64 billion, the outstanding amount owed by other companies remains PKR 24 billion.

“Show cause notices have been issued, and we may cancel the licenses of these companies if the dues are not cleared,” Rehman stated. He also cautioned that such cancellations would have widespread consequences for mobile services and financial systems across Pakistan.

Rehman explained that five operators had shown willingness to pay their dues in installments, but the PTA does not have the authority to decide on installment payments without clear guidelines. He called on the PTA and the Ministry of IT to collaborate with LDI companies to find a solution.

“If we want to accept payments in installments, we need proper guidelines. PTA cannot make that decision on its own,” he noted.

During the meeting, the Chairman of the Standing Committee, Syed Aminul Haque, urged all parties, including the Ministry of IT, PTA, and LDI companies, to work together to resolve the issue.

"The solution lies in collaboration, and all stakeholders must come together to find a way forward," Haque said.

Minister of State Shaza Fatima Khawaja expressed concerns about allowing companies to settle their dues in installments, warning that this could open a "Pandora's box." She argued that if the government allows installment payments in this case, other sectors might demand similar treatment.

“Even if the money is paid in installments, it cannot be used by the government until the court cases are resolved,” Khawaja added. “PTA cannot take unilateral action; this decision will be questioned tomorrow."

Opposition’s criticism

The meeting also saw heated exchanges, with opposition members questioning the handling of the issue. Chairman of the Pakistan Tehreek-e-Insaf (PTI) Barrister Gohar Ali Khan criticized the LDI companies, saying, “These companies have earned billions from the people of Pakistan, and they should be held accountable. The money they owe is nothing compared to the profits they’ve made.”

In addition to the financial concerns, tensions also rose over the ongoing internet disruptions in Balochistan, which were raised by Pullain Baloch, a member of the Balochistan National Party.

Baloch walked out of the meeting in protest over the government’s failure to address the persistent internet issues in his constituency. He stated, "I have been raising concerns for a year, but nothing has changed. Until the issues in my constituency are addressed, I will not stay in this meeting."

Baloch’s walkout was prompted by the ongoing shutdowns of internet services in Balochistan, which have significantly affected local communication, including in schools and colleges. He questioned why terrorists in mountainous regions have access to the internet while the general public in his area is deprived.

"The government is lying about the internet situation," he said. "The public in our area has no access, while terrorists are using the internet freely."

Minister Shaza Khawaja responded, acknowledging the law-and-order issues in Balochistan and explaining that internet services are occasionally restricted to curb terrorism. She assured Baloch that his concerns would be reviewed.

The meeting ended with Chairman Haque directing the relevant authorities to address Baloch’s concerns and find a solution to the internet disruptions in Balochistan while also urging further efforts to resolve the LDI companies' dues issue.