LCs major hurdle in completing internet projects

Senate panel decides to take up matter with finance ministry

ISLAMABAD:

The Senate Standing Committee on Information Technology and Telecommunication on Monday was informed that 1.5 million new internet connections were being provided every month, but the non-opening of letters of credit (LCs) were creating problems.

The information technology ministry further informed the Senate panel that the non-opening of letters of credit was affecting the projects of the Universal Service Fund (USF).

The participants of the huddle were further informed the letters of credit would become an issue for Jhang, Lodhran, and Mianwali.

The USF officials present at the meeting told the participants that the stoppage of the letters of credit had caused hurdles in the import of machinery for the telecom infrastructure.

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The USF managing director told the Senate panel that various projects were stalled over the lack of import of the required machinery.

The Senate panel took notice of the issue of the non-opening of letters of credit and decided to write a letter on the matter to the finance ministry.

The panel also handed over the issue to a sub-committee.

The chairperson of the committee observed that the issue of the letters of credit should be addressed for the projects of public interest.

The USF officials also told the panel that their connectivity projects in Bahawalpur, Rahim Yar Khan, Bahawalnagar and Dera Ghazi Khan had been completed.

They added that there were problems in Jhelum because of the forestation in its terrain.

The IT ministry officials told the meeting that the issue of payments to Google had been fixed.

They added that they had taken up the issue with the finance ministry.

The participants of the meeting were informed that the foreign companies had received their payments on the instructions of Prime Minister Shehbaz Sharif.

The officials further said two companies of the infrastructure had been issued licences and manufacturing would start soon in the country.

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The Pakistan Telecommunication Authority (PTA) briefed the panel on an international internet project.

The PTA representatives at the meeting described the project as an advanced technology and the fastest way for internet access.

He added that the backward areas of the country could be provided with Internet access using this technology.

However, PML-N Senator Afnanullah Khan maintained that the project would not be feasible for far-flung areas.

Later, a sub-committee, comprising senators Afnanullah and Zeeshan Khanzada of the PTI, was formed to look into the matter.

The committee also expressed its concerns over the problems related to internet connectivity in Balochistan’s Gwadar.

Senator Afnanullah said investors were coming to Gwadar and that was why it should have the best internet facilities available.

Members of the panel complained that the children in Gwadar were unable to study during the Covid-19 outbreak because of the poor internet connectivity in the city.

The PTA officials replied that the prime minister had given special orders for the improvement of Gwadar and internet access was blocked in certain areas of the city because of security reasons.

They added that special focus was being given to internet accessibility in Gwadar and projects worth Rs4 billion were under way for this purpose.

The PTA representatives told the huddle that projects of fiber lines extending to 5,800 kilometres had been completed in the city.