Almost half of Pakistan’s ATMs at risk of closure; here’s why

Almost Half Of Pakistans Atms At Risk Of Closure Heres Why

ISLAMABAD – Banking consumers in Pakistanis are concerned due to a dispute between national telecom authority PTA and Long Distance & International (LDI) operators.

The recent development revolves around Access Promotion Contribution (APC) dues from 2008 to 2010, which LDI operators claim were calculated incorrectly, leading to inflated charges. PTA first refused to renew licenses of seven LDI operators unless they settled their unpaid APC dues.

Out of 21 LDI license holders, over dozen are still currently involved in the dispute, while only four operators have managed to clear their dues and secure license renewals. Remaining operators collectively owe Rs78.6 billion, including Rs24.1 billion in principal and Rs54.5 billion in late fees.

These operators are operating under court orders due to the telecom authority’s refusal to renew their licenses. APC system, introduced in 2006, mandates LDI operators to contribute a portion of their revenue to the Universal Service Fund (USF) to support telecom infrastructure in underserved areas.

Amid worrisome development, LDI operators claim that PTA used incorrect APC rates, meant for local loop operators, leading to inflated charges and financial strain. Despite reverting to the original calculation method in 2011, the legal tussle continues.

PTA was ordered to recalculate payments, with operators asserting they have overpaid by Rs8 billion and have Rs6 billion in escrow. PTA’s refusal to accept a proposed payment plan has created a stalmate.

As both sides are refusing to take a step back, those aware with insights claimed it could dent communications, threatening Pakistan’s telecom infrastructure and economy and risking thousands of jobs.

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