Telecom sector attracts $2.6bn FDI: Economic Survey

ISLAMABAD: Pakistan Telecom sector has attracted 2.6 billion dollars Foreign Direct Investment (FDI) during last five year, off which a total of US$ 4.5 billion had been invested by the local telecom players.

According to the Economic Survey Report for Fiscal Year 2018-19, released by Advisor to Prime Minister on Finance, Dr Abdul Hafeez Shaikh here on Monday said that sector was playing pivotal role in Pakistan’s economy where it is contributing directly and indirectly in employment generation, financial inclusion, attracting investment, providing innovation opportunities besides contribution of huge resources to national kitty in terms of taxes, duties and other levies.

Telecom operators have invested a significant amount of US$ 200.1 million during July-December 2018 to March.

The main driver behind this investment is the cellular mobile sector, which has invested US $158.3 million during the first two quarters of Finance Year 2018-19.

The commercial launch of 3G and 4G LTE services has opened new opportunities for revenue generation for the mobile operators.

As per the survey report revenues from telecom sector reached an estimated Rs. 268.8 billion during the first two quarters of Finance Year 2018-19.

The progressive approach followed by PTA for providing ICT access to the citizens of Pakistan through international fibre optic cables, backhaul networks and wireless solution including 3G, 4G, LTE have resulted in more than 89 percent of the total population access to cellular mobile services of which 73 percent have access to 3G services and 69 percent have access to 4G services.

Total teledensity reached 77.2 percent at the end of March, 2019 compared to 74.1 percent at the end of last fiscal year 2017-18. The prime driver of teledensity rise is the growth in cellular mobile subscribers.

The total number of mobile subscriptions in Pakistan reached at 159 million with the net addition of 8.8 million subscribers during the July, 2018 to March 2019.

Broadband Subscribers of Mobile and Fixed Broadband subscriber base showed strong growth during July, 2018 to March, 2019. At the end of March 2019, broadband subscribers stood at 68.24 million as compared to 58.33 million at the end of last fiscal year 2017-18.

The number of net subscriber additions during first nine months of 2018-19 stood at 10 million.   The subscriber base of local loop segment has reached 2.70 million at the end of December 2018 as compared to 2.76 million as of June, 2018.

FLL subscriber base has remained steady as 2.56 million subscribers as of June and Dec, 2018) as reported by the operators. The closure of PTCL’s WLL connections and the mobile substitution effect has resulted into gradual decline of the local loop subscriptions.

Pakistan Telecommunication Authority (PTA), has been ranked 7th largest tax paying organization among its peers in 2018 on its income to the Federal Board of Revenue.