Business

Zong announces over $300m investment during 2016

Says company looking to expand network, but wary of high tax rates

Peer Muhammad February 26, 2016

Says company looking to expand network, but wary of high tax rates.

ISLAMABAD: China Mobile Pakistan (Zong) Deputy Chief Executive Officer Niaz A Malik reiterated the company’s commitment to the Pakistani market and announced that the mobile operator would be investing close to $300 to $400 million during 2016.

However, this amount is significantly lower than last year’s invest of $1 billion due to the rising taxes levied on the telecom sector in the country, said Malik as he addressed a press conference in Islamabad on Friday.

Mobile broadband demand growing at rapid pace

The deputy CEO said that Zong planned to expand its fourth generation (4G) services to 60% and third generation (3G) to 100% by the end of 2016, and for which a hefty investment will be made during the year. However, Malik expressed his concerns over the high tax rates on the telecom sector, saying that this not only affects the company and its customers, but also has adverse effects on the country’s gross domestic product.

“These high taxes adversely affect the telecom industry and are eventually adding to the miseries of cellular subscribers,” he noted.

He mentioned that Punjab has set a great example by abolishing the 19.5% tax on mobile internet services.

“We hope that other provinces will follow the same course. This is essential to allow the telecom industry to flourish further”, he stated.

Pakistan's LTE speeds one of the slowest in the world

He said that the rational tax regime will strengthen Pakistan economically and help its people. Currently, he said, more than 2,700 sites of Pakistan are powered with 4G services and it is part of Zong’s plan for 2016 that this number would be doubled.

According to Malik, the China Pakistan Economic Corridor is another opportunity for the telecom sector as large number of Chinese investment companies are heading to Pakistan. “We want to digitalise Pakistan with the latest telecom technology and quality services.”

Published in The Express Tribune, February 27^th, 2016.

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COMMENTS (2)

Woz ahmed | 8 years ago | Reply If 1 in 200 pay income tax, does the government have any other choice but to tax growth sectors ? Agriculture, textiles and others want tax free industry and subsidised energy, large farmers pay no tax.petrol and diesal are the cheapest in SAARC. What option does the government have but to use regressive taxes ?

noor | 8 years ago | Reply Good job ZONG & keep it up ..

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