telecom sector in Pakistan

Telecom sector in Pakistan has generated revenue of Rs.333.2 billion for July-March fiscal year 2016, yielding big taxes and escalating economy of the country.

According to a Khaleej Times report, the telecom industry is doing prospering business and offered significant opportunities to the investors.

A year ago, the telecom industry had to suffer when the government launched an anti-terrorism campaign to terminate millions of suspected SIM cards. A declining trend was observed in telecom sector due to the loss of millions of cellular subscribers. After re-verification process, the intense competition and low tariffs dwindled down the revenues of all telecom companies.

PTA and the Ministry of Finance reported that during the last five years starting from the fiscal year 2011 and ending in the fiscal year 2015, the telecom sector has contributed Rs744.6 billion to the national treasury in the form of various taxes and duties.

In first three-quarters of the fiscal year 2016, the telecom sector added Rs105.9 billion to the economy.

Rationalization of Taxes of Telecom Sector

The telecom industry of Pakistan can flourish and consequently can shot up yielding taxes if government reduces and rationalize tax rate in the telecom sector, an official of the ministry of finance told Khaleej Times.

These telecom businesses are a big golden apple in government’s budget and yield more case than any other industry, the official added.

According to the PTA, the investment in telecom sector during the period of FY 2013, and FY 2016 remained 4 billion. During that time, the cellular subscribers rose to 131.4 million out of an estimated population of 180 million. The number of subscribers is still on the rise.

At the end of March 2016, the number of 3G and 4G LTE subscribers was 27.87 million. It was 13.49 million in June 2015. An upward trend has been noticed in the number of broadband subscribers. Most of the broadband subscribers are linked with the mobile broadband that was launched in June 2014.


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