Ishq-e-Rasool day cellular service blockade cost telcos Rs600m

ProPakistani calculates exchequer suffered Rs180m in lost taxes from cellular operators during Friday's blockade.


Web Desk September 22, 2012

The government's blockade of cellular services in as many as 15 urban centers of the country on Friday caused the cellular operators an estimated loss of Rs600 million, ProPakistani reported on Saturday.

According to the report, sources in at least two cellular operators told ProPakistani that they had suffered revenue losses of Rs600 million during the 14 hour blockade.

ProPakistani broke up the number into Rs180 million in revenue losses for the national exchequer in the form of federal excise duties and withholding taxes.

This is the second blockade in two months that the Ministry of Interior has instituted in the country.

In August, the government had ordered a shut down of cellular services on the eve of Eid. That 15 hour blockage, industry sources told The Express Tribune, had cost the telcos as much as Rs3 billion in losses.

As a result, the national exchequer lost almost half a billion rupees in revenue between the night of August 19 and 20. The estimated loss for both the closures raises the figure closer to one billion rupees.

Rehman Malik offered explanations for the closures on both occasions as security risk.

Militants use remote-controlled bombs detonated by cell phones, this was an unfortunate but necessary step to take, Malik had said of the August blockade.

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COMMENTS (2)

Tahir | 7 years ago | Reply | Recommend

This is the second time cellular services are put to a halt. If this becomes a trend, I'm afraid it is going to turn out really bad for an ordinary citizen. But then does an ordinary citizen really matter here? But hey, never mind, this is not going effect the payrolls of the top government officials anyway. The damages and losses are to be compensated from a taxpayer, by cutting down the salary of an ordinary citizen or simply by increasing the price of the basic commodities. If this becomes a trend, then telecom companies may start downsizing to compensate their losses, and this will lead to further joblessness. Further joblessness here means more frustration and hence further chaos.

mr. righty rightist | 7 years ago | Reply | Recommend This is hogwash. Cellular companies mint money. A day or even a week will make no big difference to these leeches.
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