Public Account Committee’s monitoring arm on Wednesday directed the telecommunication regulator “to keep a watch on Long Distance and International (LDI) call operators,” cautioning it about a “scam in making” as receivables of Pakistan Telecommunication Authority (PTA) have already shot up to Rs41 billion.
The implementation and monitoring committee of PAC asked PTA to remain vigilant as LDI operators have indulged in some illegal business. It was referring particularly to two operators – Circle Net and Tri Tel.
“Few LDI operators have been showing continuous losses and we fear loss of more revenues,” said PTA Chairman Dr Mohammad Yaseen. He said LDI operators owe Rs17 billion to PTA on account of various fees and service charges.
The committee expressed its displeasure over PTA’s inability to recover outstanding amount of Rs41 billion from LDI and cellular companies.
The PTA chairman said five LDI operators owed Rs8.8 billion to PTA and their licences had been suspended few days ago. The committee directed the management to negotiate with these companies without compromising on rules.
Yaseen said 4B Gentel International owes Rs992 million, Wise Communication Systems Rs684 million, Worldcall Telecom Rs2.9 billion, Multi Net Rs2.7 billion and Redtone Telecommunications Rs1.6 billion.
Information Technology Secretary Saeed Ahmad Khan told the committee that PTA has asked the ministry to auction cellular licence of Instaphone mobile company to recover outstanding amount of Rs21 billion. He said the ministry was reviewing legal matters as the company has filed a review petition in the Supreme Court of Pakistan.
Khan said despite the petition the matter is not sub judice, as the Supreme Court neither barred the government from taking any action nor provided any relief to the party. He hinted at reaching an out-of-court settlement with Instaphone for the recovery of the amount.
He said the government was not giving due treatment to the telecom industry and instead has made it a source of income. “In Pakistan, tax rates are highest in the South Asian region.” He said in the last financial year the government collected Rs350 billion in taxes from the telecom sector at a rate of 31 per cent.
“The Ministry of Information Technology has met with the finance minister and requested him to review the situation, as the high tax rates are now hurting the sector’s profitability,” he added.
Published in The Express Tribune, July 7th, 2011.
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It is interesting that people speak of a scam in the making when we have already been had! I wonder if your paper (which incidentally is turning out to be quite good) has done any in-depth any investigations itself?
We speak euphemistically and politely of 'Grey traffic', 'illegal termination' etc. It is Theft. Dacoity. Stinking corruption. Pure and simple. Much more lucrative than drug running or other lurid professions and almost painless if you are one of the large fish, or shall I say, shark.
The government aids and abets you, the arrests and investigations lead no where and a cool US$ 20-25 million a month is minted by a select few. Highly publicized raids on 'illegal exchanges' are made, some petty thieves are caught and released - 'karawai ho gaee''!
In the process, the telecom industry is going down the tubes and to top it all being harassed to end their businesses or fall in line with such sensational news items as you have published. do you want a mass hara kiri?
I suppose this 'sufaid posh' industry are not as appealing for the media as the politicians, frothing at their mouths like mad dogs trying to shout each other down with inanities or exposing some errant generals (politicians are no more fair game - it is now their inalienable right to be corrupt).
All this is a smoke screen to hide the failures of Governance and Regulation. When will we learn: if we continue to try to kill the geese that lay the golden eggs we are shooting ourselves in the foot and making sure that to the already tattered reputation of Pakistan, we add the final nails in the coffin to discourage any new investors in this sector.
Whither 3G auctions....?