Communication Industry

Compiled by: Mirza Rohail B

Pakistan is on the verge of Telecom revolution. Pakistan Telecommunications Authority (PTA) in 2004 introduced  two types of license for ISPs – regional and nationwide, and also exempted them from Central Excise Duty. Since liberalization, over the past four years, the Pakistani telecom sector has attracted more than $9 billion in foreign investments. During 2007-08, the Pakistani Communication sector alone received $ 1.62 billion in Foreign Direct Investment (FDI) – about 30% of the country’s total foreign direct investment. 

By March 2009, Pakistan had 91 million mobile subscribers – 25 million more subscribers than reported in the same period 2008. In addition to 3.1 million fixed lines, while as many as 2.4 million are using Wireless Local Loop connections.

Pakistan is ranked 4th in terms of broadband Internet growth in the world, as the subscriber base of broadband Internet has been increasing rapidly with the total base crossing 170,000 in the country. The rankings are released by Point Topic Global broadband analysis, a global research centre.

Pakistan according to PC World was amongst those top five countries with the highest SMS traffic processed with 763 million SMS during 2008-09. In terms of year-on-year growth, Pakistan traffic volume grew by 253 percent compared to last year during the same period.

The contribution of telecom sector to the national exchequer increased to Rs 110 billion in the year 2007-08 on account of general sales tax, activation charges and other steps as compared to Rs 100 billion in the year 2006-07.

Foreign Investment

Pakistan is now the most investment-friendly nation in South Asia. Business regulations have been profoundly overhauled  along liberal lines, especially since 1999. Most barriers to the flow of capital and international direct investment have been removed. Foreign investors do not face any restrictions on the inflow of capital, and investment of up to 100% of equity participation is allowed in most sectors (local partners must be brought in within 5 years and contribute up to 40% of the equity in the services and agriculture sectors). Unlimited remittance of profits, dividends, service fees or capital is now the rule.

Business regulations are now among the most liberal in the region. This was confirmed by a World Bank report published in 2008 ranking Pakistan (at 76th) well ahead of neighbors like China (at 93rd), India (at 120th), Bangladesh (107^th) and Sri Lanka (101th) based on ease of doing business.  The ranking is based on 10 indicators of business regulation that follows the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure.

The tables below also negate arguments by those that accuse Pakistan of raising foreign investment by selling off state assets.  Fact is that only $6 billion were raised by selling state assets in the past 15 years. (News)

 

 

View Detailed (Country wise and Sector wise) Facts & Figures below. Keep reading