Paknet was initially working as a Division of PTCL with joint accounts whereas it was competing with other ISPs in the market. PTCL offered many services to Paknet free of cost and other private sector ISPs were at disadvantage. ISPAK took up the matter of cross subsidization of Paknet by PTCL with PTA and pleaded the case as this was a violation of Pakistan Telecommunication (Re-organization) Act, 1996. After lot of efforts spreading over 2 years, Paknet was transformed into a separate public limited company, 100% owned by PTCL, with separate accounts and PTCL started charging for its services to Paknet which previously went unaccounted.
