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 levelled 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.
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 Rs 24 billion, besides addressing the concerns of grey trafficking.
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. 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.
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.
The committee, chaired by Mohammad 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. The committee also asked the Ministry to provide details in its next meeting, explaining why the former CEO USF was removed from his post.