PTCL comes under harsh criticism from Senate Standing Committee on Information Technology

PTCL comes under harsh criticism from Senate Standing Committee on Information Technology

Meeting of Senate Standing Committee on IT

Islamabad (Daily Business Recorder / Thursday, December 13, 2012) – Pakistan Telecommunication Co. Ltd. (PTCL) on Wednesday came under harsh criticism in a meeting of Senate Standing Committee on Information Technology which had summoned its CEO Mr. Walid Irshaid on charges of his alleged involvement in grey trafficking.

Meeting of Senate Standing Committee on Information Technology (File Photo)

Senator Faisal Raza Abidi Allegations
The parliamentary panel, which also advised Pakistan Telecommunication Authority (PTA) to establish a proactive system to control grey trafficking and lessen the burden on international callers, took a serious note of the charges leveled by its member Faisal Raza Abidi who had alleged that PTCL with the support of some federal ministers was involved in grey trafficking and earning billion of rupees illegally.

Abidi claimed that he would come up with evidence against PTCL and also Arsalan Iftikhar, the son of Chief Justice of Pakistan, and some federal ministers. “I would enlighten the committee with documented proofs – which the Suddle Commission failed to unearth – as to how the PTCL is earning billion of rupees illegally through grey trafficking as well as involvement of Arsalan Iftikhar in the practice,” Abidi alleged.

PTA Briefing on International Clearing House (ICH)
Earlier, briefing the committee on International Clearing House (ICH) and the measures to control grey trafficking, PTA chairman Farooq Awan said that despite pressure from the embassies of the US and Saudi Arabia and Etisalat, the Ministry of IT, after consultation with all stakeholders, issued a policy directive on establishment of ICH exchange for international incoming calls for Long Distance International (LDI), fixed-line local loops, wireless local loops and mobile operators on August 13, 2012 in order to address the concerns of LDI operators.

But the process has been suspended after a company obtained a stay order court, according to him.

He said that the initiative was taken with a view to bringing foreign exchange in the country and recovering huge amount of outstanding dues with LDIs in respect of Access Promotion Contribution (APC) for Universal Service Fund (USF) dues amounting Rs24 billion, besides addressing the concerns of grey trafficking.

Tax on International Phone Calls
He clarified that no new tax had been imposed by PTA on overseas telephone callers calling Pakistan from abroad, adding that levying of taxes was the exclusive domain of Ministry of Finance and FBR.
Effect of Suspending Tax on Overseas Phone Calls
Due to suspension of the ICH regime following stay order, the PTA chairman told the panel that an expected annual loss of $ 1 billion would accrue in the form of foreign inflows, negatively impacting country’s foreign reserves. Furthermore, he said that $302 million per annum would be lost in terms of APC for USF, $696 million as LDI share and $98 million in taxes.

Impact of ICH on PTCL and Etisalat
The PTA chairman further revealed that before the establishment of ICH regime, the PTCL in which the state had 64 percent shares was running in loss while Etisalat with 26 percent was gaining; however, after the ICH system, the PTCL was in a position of making gains while Etisalat had begun to lose.

Implementation of provincial quota in jobs
The committee, chaired by Muhammad Idress Khan Safi, also directed PTA to strictly observe the provincial quota in appointments. The panel directed Secretary IT Amir Tariq Zaman to furnish all the details regarding recruitment criteria of Chairman PTA and CEO, USF.

USF’s CEO Removal
The committee also asked the Ministry to provide details in its next meeting, explaining why the former CEO USF was removed from his post.


  1. May aik IT engg. Honay kay natay mr.farooq awan (pta corruption king) ap se aik question karna chahta hoon ap nay 2 saal pehlay aik israeli firm Naurusinsight (cyber security firm)38 million $ ka contract keya howa hay jo sirf mulk may voip kee nigranee kartaa hay aur jo IP adress voip packets transfer kartaa hay yeh advance system uss ko block kardeta hai.mulk pakistan may aam aadmee kay leeye VPN (Virtual protective lan) banned hai.ab ap batain kin wuzraa ko apnay VPN allowed kee hai jo grey trafficking karahai hain VPN kay through.jiss ko aaj kay dor ka jadeed cyber security system trace nahin kar paraha hai.

  2. Sub ko maloom hai kay ppp govt. Kay ministers ki telecom companies mai sharing hai in sub nai zyada paisa kamanay kay laluch may pakistani awam ka jeena do bhar kardeeya hai.zulam to dekho pakistan ka intehayee 3rd class telecommunication system aur voip calls kay charges ap regular calls kay charges kay hisaab se wasool kar rahay ho.Farooq awan khud voip bussiness may mulawass hai.rehman malik bhi inlogo ko maloom hai ab govt. Jayegee ppp wapas kabhi nahin aaye gee.laasho pay syasat karnay walay akhree jhutkay de rahay hain awam ko zyada se zyada loot lo mulk aur qom ko pata nahin next chance hai bhi kay nahin 🙁

  3. this is not fair pta

  4. Bull shit chairman pta Farooq awan(zardaree frnd)why u r missguided the senate committee.yah to wohee baat howee agar ap pakistan kee 20 crore kee awaam pay maheenay ka 20 rupay saans lainay kaa tax lagadein 200000000×20=2 billion/month agar awaam cheekhain aur naah dein to aap yah kahtay phirain kay monthly 2 billion ka loss horaha hay.farooq awaan tum pay laanat tum pay phitkaar tum ko allah aibrat ka nishaan banaye gaa inshallah.

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