In 2023, the Pakistan Telecommunication Authority (PTA) reported significant progress in the country’s telecom industry, despite facing challenges. The Annual Report for 2023, presented to Caretaker Prime Minister Anwaarul Haq Kakar by PTA Chairman Maj General (R) Hafeezur Rehman, highlighted several key achievements.
The telecom sector witnessed a commendable 17% growth, generating Rs850 billion in revenues during FY 2022-23. Cellular mobile services are now accessible to 90% of Pakistan’s population, with an impressive 192 million telecom subscribers, including 130 million broadband users. This indicates a widespread adoption of telecom services, contributing to increased connectivity and digital access for the population.
However, industry analysts expressed concerns over a decline in revenue for foreign investors, dropping from $4.84 billion in 2018 to $3.03 billion in 2023. Several challenges were identified, including high business costs, a rise in corporate income tax, and other financial issues. These factors may have contributed to a less favorable environment for foreign investment in the sector.
One notable development that raised eyebrows was the departure of Telenor from Pakistan. Analysts attribute this exit to a failure in the policy environment, highlighting the delicate balance required to sustain a healthy telecom industry. The departure of a major player like Telenor underscores the importance of a stable and supportive policy framework to retain foreign investors and foster a thriving telecom sector.
Despite challenges, the PTA’s report aims to showcase the positive strides made by the industry. The comprehensive document will be made accessible to the public on January 29, 2024, through the PTA website, providing transparency and insights into the achievements and challenges faced by the telecom sector in Pakistan during the fiscal year 2022-23.
