NA body told ‘Telecom sector contributed Rs1,700bn to national exchequer in 6 years’

ISLAMABAD: National Assembly Standing Committee on Information Technology and Telecommunication was informed that the telecom sector contributed Rs1,700 billion to the national exchequer during the last six years, however, government investment in infrastructure improvement and development remained nil.

The committee met under the chairmanship of Syed Aminul Haq, here on Thursday. The committee observed that the Pakistan Telecommunication Authority (PTA) had previously informed that the internet situation in the country would improve by October 2024.

However, concerns persist regarding ongoing internet issues, which are causing the country financial losses amounting to millions of dollars.

The PTA chairman briefed the committee that three out of seven submarine cables had been damaged, leading to significant internet disruptions in the country. He explained that internet shutdowns are enforced by the PTA based on directions from the federal government, the Ministry of Interior, and Courts during law and order situation.

The chairman assured the committee that the PTA has no malicious intentions and that all actions are taken to address the country’s prevailing circumstances responsibly. The chairman added that the current allocation of 270 MHz spectrum is insufficient for the country’s population of 240 million, resulting in network choking issues. However, he said that a 5G spectrum auction is planned for April, which will significantly improve the internet situation in the country. The PTA chairman highlighted that over the past six years, the PTA has contributed Rs1,700 billion to the exchequer from the telecom sector.

However, he expressed disappointment over the lack of government investment in infrastructure improvement and development. He also informed the committee that four new submarine cables are being introduced, which will further enhance the country’s internet performance. These developments are expected to address current connectivity challenges and support the growth of the digital economy.

The committee expressed displeasure over the PTCL’s failure to provide the list of properties despite clear directions from the committee.

Consequently, the committee directed that the complete property list be presented in the next meeting. The PTCL, referring to a clause in the Sales and Purchase Agreement, stated that it retains the right to buy and sell properties. However, it was noted that since 2007, no practical action has been taken beyond the agreement itself. The committee was informed that the Privatization Commission serves as the custodian of the Sales and Purchase Agreement of PTCL and oversees all related matters. Additionally, it was clarified that PTCL cannot sell any property without prior approval from its board.

Etisalat has yet to make 33 percent of its payments, despite the government transferring property titles to it. The minister briefed the committee that a Special Committee, led by the finance minister and including all stakeholders, has been formed to address this issue.

The committee directed that the findings of this Special Committee be presented in the next meeting for review and resolution. Additionally, it was instructed that the Sales and Purchase Agreement of PTCL with Etisalat be shared to examine its clauses in detail. The committee instructed that the minister and the secretary of Law and Justice be invited in the next meeting to present their perspectives. The committee emphasised that their input is crucial for a comprehensive review of the issue and to ensure an effective resolution.

Copyright Business Recorder, 2025