According to the annual report of Pakistan Telecommunication Authority (PTA), the telecom sector has deposited Rs. 31.5 billion in the national exchequer during the fiscal year (FY) 2015-16, after which, the investment of the telecom sector in the national economy has been increased from 126.3 billion to 157.8 billion.
As per the yearly report of PTA for the year 2015-16, a significant amount of revenue was generated by auctioning the spectrum of third-generation (3G) and fourth generation (4G) mobile phone technologies.
The review of the national exchequer and the income of the telecom sector makes it clear that the government’s collections have been increased by 25% while the revenue of the telecom sector during the year 2015-16 have been increased by 1.47%.
The PTA annual report says that the telecom sector developed positively in terms of subscription, incomes, and teledensity during the stated year. In the year 2014, the usage of broadband was just 2%, which has now been increased to 18.3%.
In 2015-16, the transaction of Rs. 1492 billion was made via mobile banking. Modern and low-cost solutions are being introduced in the sectors of e-Commerce, online education, e-Health, travel, and governance, says the PTA annual report.
Telenor Pakistan purchased the 4G-LTE spectrum in the same year for the cost of $395 million, thanks to the demand for mobile broadband services. Similarly, the government’s collection has also been increased due to the promotion of broadband and Information Communications Technology (ICT). Although the general sales tax (GST) has been removed from the overall collection of the government, there are a number of reasons for it.
The federal government and the government of Punjab removed the GST on the data services and the Internet. The government of Sindh is providing the data services at low cost, due to which the telecom revenue has been increased from 19.3% in the year 2013-14 to 29% in the year 2015-16.