ISLAMABAD: The telecom sector contributed an estimated Rs 97.7 billion to the national exchequer in terms of taxes, regulatory fees, initial and annual license fees, activation taxes and other charges during July-December FY 2021, says the Economic Survey 2020-21.

The survey noted that the telecom sector has emerged as one of the vibrant sectors of Pakistan’s economy.

Increasing revenues, growing investment and enhanced contributions to the national exchequer are hallmarks of the sector for many years now.

During July 2012 to February 2021, the telecom sector has attracted over $3.9 billion of the FDI.

The Foreign Direct Investment in telecom during July-February fiscal year 2021 was $101.1 million.

Telecom operators have invested an amount of $363.9 million during July-December fiscal year2021.

The main driver behind this investment is the cellular mobile sector, which has invested $253.5 million during the period.

The overall investment in the telecom sector during the 1st eight months of fiscal year 2021 crossed $ 465 million. Telecom sector is a significant source of revenue generation for the national exchequer.

The telecom sector’s contribution (including the PTA deposits) to the national exchequer registered 129 percent growth in fiscal year 2021.

The International Telecommunication Union reported decline of 5-10 percent in telecom sector revenue across countries owing to the Covid-19.

Pakistan was no exception in FY 2021, as telecom sector revenue declined to Rs 541.4 billion, which was 4.1 percent less as compared to last year.

Revenues from telecom sector in two quarters 2021 reached an estimated Rs276.0 billion, the survey noted.

Data usage by the CMOs during July 2020 to February 2021 reached 4,196 petabytes, which indicates a huge increase in eight months.

During last FY2020 data usage remained 4,498 petabytes.

Copyright Business Recorder, 2021