PTA report stresses urgent reforms

Shows revenue for foreign investors down from $4.84b in 2018 to $3.03b in 2023

ISLAMABAD:

Amid the telecom industry’s struggles to survive various challenges, the Pakistan Telecommunication Authority (PTA) has revealed to the prime minister that the industry made noteworthy progress and achievements in 2023. Chairman of the Pakistan Telecommunication Authority (PTA), Maj General (R) Hafeezur Rehman, met with Caretaker Prime Minister Anwaarul Haq Kakar, to present PTA’s Annual Report for 2023.

Industry analysts note that the telecom sector’s revenue for foreign investors decreased from $4.84 billion in 2018 to $3.03 billion in 2023. Moreover, the industry is grappling with a high cost of business, including elevated energy costs, interest rate hikes, and dollar-denominated spectrum instalments. Additionally, Pakistan increased its corporate income tax from 29% to 33% in 2022, now reaching an aggregated all-time high of 39%.

The telecom industry has actively advocated for policy interventions across various platforms to enhance the industry’s health and safeguard the viability of operations. Unfortunately, analysts believe that governments and policymakers have not heeded the industry’s warnings about an impending digital emergency, leading to the departure of one of the most well-organised telecom groups globally — Telenor. The company’s repeated warnings and concerns about the formidable challenges in the telecom sector’s business environment remained unaddressed, compelling it to wind up its operations.

This sentiment is echoed by industry analysts who view Telenor’s exit not as a natural market consolidation or reorganisation but as a consequence of a policy environment failure that compelled a hasty departure.

Read Lessons learnt for telecom sector

According to a statement issued by PTA, this report encapsulates the noteworthy progress and advancements witnessed in the telecommunications industry throughout the preceding year. Chairman PTA highlighted key milestones, innovative initiatives, and strategic interventions undertaken by PTA to enhance connectivity. During the meeting, the caretaker PM expressed his commendation for PTA’s efforts and acknowledged the pivotal role played by PTA in fostering growth and development within the telecom industry.

The report highlights that the telecom sector generated Rs850 billion in terms of revenues in FY 2022-23, showing a growth of 17% despite economic challenges. Moreover, cellular mobile services are available to 90% of Pakistan’s population. Telecom subscribers reached an impressive 192 million at the end of September 2023, with 130 million broadband subscribers. Several regulatory measures and initiatives were taken during the reported year for the growth and development of the sector. The Annual Report 2023 serves as a testament to PTA’s commitment to steering the telecom industry towards digital transformation and aligning it with global standards. The report will be available on the PTA website on Monday, January 29, 2024.

Published in The Express Tribune, January 27^th, 2024.

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