PTA’s Failed Performance on 3G Auction, Grey Trafficking and USF Contracts

January 5, 2013 11:13 pm 0 comments

According to the Standing Committee on telecommunication in Pakistan, Pakistan Telecommunication Authority (PTA) had failed to perform its duty over the 3G auction due to lack of regulatory procedures. The move to hire a foreign consultant to monitor the 3G auction and then to cancel the contract worth Rs.10 million is also not the right step. The Standing Committee believes that PTA has not been transparent in the 3G auction process.

Pakistan need better economic policies and yet something that could bring in billions for the country is being constantly delayed due to the incompetence of the officials at PTA. If delayed the third time, it will really proof that there must be an intervention from some other authority, possibly the prime minister. The one official who is coming under the target is Farooq Awan being the Chairman of the PTA. He is being held as directly responsible for causing all this delay. PTA had denied payment to any consultant, however, if such a contract had really occurred, then the Standing Committee wants to hold the Chairman of the PTA accountable for this.

Besides this delay, the grey trafficking is also yielding a loss of $1 billion per annum. The reason nothing is being done is because PTA does not want to take any action against those who have influence. Those few actions which had been taken in court, legally those have also been an indication of weakness for the PTA because the cases were not defended well. PTA was able to monitor only 13% of grey trafficking whilst most of the grey trafficking had been taking place due to people who are also part of the government. These corrupt government officials are making it different to eliminate grey trafficking from Pakistan.

Besides facing these two issues of delayed 3G auction and grey trafficking, PTA also been under criticism for its role in the allotment of Universal Service Fund (USF). Around Rs.25 billion were handed out under USF to the companies which are known to be defaulters. The Federal Bureau of Revenue is being asked to go through the details of these contracts under USF.

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