The Pakistan Telecommunication Authority (PTA) Chairman, Major General (Retired) Hafeez Ur Rehman, warned the National Assembly Standing Committee on Information Technology that canceling licenses of defaulting Long Distance and International (LDI) operators could severely impact Pakistan’s telecommunications infrastructure, potentially disrupting 50 percent of mobile services and blocking 40 percent of ATMs nationwide.

During Monday’s committee briefing, Rehman revealed that nine LDI companies currently owe significant dues to the government. While five operators have already paid Rs. 64 billion, a principal amount of Rs. 24 billion remains outstanding. Of this, five companies are willing to settle Rs. 8.2 billion in installments, but the remaining Rs. 16 billion is owed by companies unwilling to pay.

“Show-cause notices have been issued, and license cancellations remain an option,” the chairman stated, but emphasized that PTA lacks the legal authority to independently approve installment-based recoveries.

Federal Minister of State for IT, Shaza Fatima, supported this position, cautioning that allowing installments might set a problematic precedent across sectors. “Even if the funds are recovered in parts, they would be locked in an escrow account until legal proceedings conclude and would be unusable by the government,” she explained.

Fatima further clarified that ongoing court cases are complicating the situation, with explicit judicial orders preventing immediate action. “The PTA cannot act alone and must coordinate with the IT Ministry,” she added.

The committee chair urged both PTA and the IT Ministry to consult with the LDI companies to work toward a resolution. Chairman Rehman concluded that once all hearings are complete, a final decision will be taken, including possible license cancellations, but warned that if the government loses the court cases, any recovered funds would have to be returned.