PTA reiterates telecom sector’s contribution

Says it has pitched in Rs582b in the last three and a half years

ISLAMABAD: The telecom sector has contributed Rs582.95 billion to the national exchequer during the last three and a half years, making it one of the most significant sources of revenue for the federal government.

The largest chunk of Rs243.28 billion came during  fiscal year 2013-14. Moreover, Rs126.26 billion were contributed during 2014-15, Rs159.65 million during 2015-16 and Rs53.76 billion during the first two quarters of FY 2016-17.



Officials at Pakistan Telecommunication Authority (PTA) on Thursday said the contributions comprised all of PTA’s receipts including initial and annual licence fees, annual radio frequency spectrum, spectrum administrative fee, universal service fund (USF) and research & development fund contributions, APC for USF, numbering charges and licence application fee.

Other income streams for the government included conventional taxes including customs duties, withholding tax (WHT) and other charges. Sources said that the commercial launch of 3G and 4G services has opened new opportunities for revenue generation from telecom operators.

“Availability of 3G and 4G services has enabled development of new applications and database services and people are quickly adapting to these new technologies and services,” sources added.



Moreover, information technology remittances have also seen a major increase over the last decade with a compound annual growth rate (CAGR) of approximately 23% and a total increase of almost 97%.

The country’s IT exports have also topped $2.8 billion, as a result of the telecom sector’s expansion into internet related services, according to most estimates. The annual domestic income of IT firms has also increased to $500 million with total income estimated to be $3.3 billion.

Published in The Express Tribune, July 14^th, 2017.

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