Telecom sector generates record Rs694bn revenues during FY 2021-22

ISLAMABAD: Telecom sector generated record revenues of Rs 694 billion during the financial year 2021-22 compared to Rs 651 billion during the same period of 2020-21, however, economic slowdown and increased operational costs resulted in rather sluggish growth in the last quarter, says the Pakistan Tele-communication Authority (PTA).

According to official documents, Foreign Direct Investment (FDI) declined from $ 202 million in 2020-21 to $ 168 million in 2021-22. The FDI inflow in the telecom sector was $ 168.4 million, outflow was $ 197.6 million, and net FDI was $ 29.1 million. The sector substantially contributed Rs 325.2 billion to the national exchequer, of which Rs 223 billion were in the form of taxes and the remaining Rs 102.5 billion were proceeds from Next Generation Mobile Services (NGMS) auction (Rs 30 billion) and license renewals (Rs 72 billion).

The expanding usage of telecom services enabled the telecom industry to achieve all-time high revenue of Rs 694 billion during 2021-22. Tax collection by the industry touched Rs 223 billion, including Rs 77 billion as General Sales Tax (GST) and Rs 100 billion as Withholding Tax. The PTA also deposited Rs 102.5 billion in the Federal Consolidated Fund (FCF), primarily on account of proceeds from the NGMS auction and license renewals; this was Rs 53 billion more than the amount budgeted in the federal budget 2021-22.

Copyright Business Recorder, 2023