Unpaid dues: IT ministry withdraws letter giving concessions to LDI firms

ISLAMABAD: The Ministry of Information Technology has withdrawn its initial notification that provided concessions to Long Distance International (LDI) companies on recovery of billions of rupees in dues. The ministry has now decided to collect 100% of the principal amount for the renewal of LDI companies’ licences.

According to sources, this decision was made in an emergency meeting held on Monday under the chairmanship of Minister of State for IT Shezha Fatima. The meeting was attended by the secretary of IT, as well as ministry and PTA officials and representatives from LDI companies. Sources indicated that Shezha Fatima Khwaja expressed serious concern and dissatisfaction over the previously granted concessions.

The IT ministry officials deemed the ongoing notification a mistake and instructed that a new letter be issued demanding the full principal amount from the LDI companies. If the full amount is not paid, the licences will not be renewed.

The minister clarified that a few installments might be permitted for the total payment, and the issue of late payments will be addressed under court decisions.

Shezha Fatima Khwaja emphasized that, given the national economic situation, every penny is needed for the national treasury, and that LDI companies must make the payments.

Earlier, when journalists questioned the alleged concession of billions of rupees to LDI companies and asked about the recovery of these funds, the minister assured that Rs24 billion would be recovered. When some journalists noted that this sum is very high due to additional late payment surcharges, the minister replied that the matter was currently in court. According to the document, 10 LDI companies were granted over Rs60 billion in concessions, and they are required to pay Rs24 billion in principal amount and Rs54 billion in late payment surcharges.

Initially, the IT ministry had instructed the PTA to collect only 50% of the principal amount, even if in installments. However, the IT ministry has now withdrawn this letter, clarifying the recovery process.

It was also revealed that following the initial letter, the PTA had sought a policy directive from the federal government. The PTA indicated that five LDI companies are willing to pay 100% of the principal amount but the PTA can only collect 50% based on the federal government’s policy directive.

According to the document, the companies owe Rs24 billion in dues accumulated over the past 20 years. The LDI companies were supposed to pay billions of rupees to the USF and have challenged the payment of dues in court.