Pakistan’s telecom sector of late has emerged as one of the key contributors to Pakistan’s sagging economy which has suffered severe blow because of massive floods, oil commodity price fluctuations, and the internal disturbances.
According to Pakistan Telecommunication Authority (PTA) the telecom sector has made the country’s economy richer by Rs 627 billion during last six years. The report says that telecom sector is significant contributor to the national exchequer depositing over Rs 100 billion on average annually.
The report further said that telecom sector made its highest ever contribution to the national exchequer during 2011 as more than 117 billion were placed by different telecom companies and PTA while Rs 109.1 billion were deposited in the kitty year last year showing 7% growth during 2011. PTA alone has deposited more than Rs 72 billion in the national exchequer during the last six years.
Besides this, tax collection from telecom sector remained the principal contributor in the total taxes received by the government. Telecom sector has more than 93 %share in total GST/FED collection from services sector. During fiscal year 2011 telecom companies contributed Rs 52.6 billion in the form of GST /FED 20% more than Rs 44 billion contributed during 2010. Cellular services contributed Rs 44.9 billion during 2011 compared to Rs 36.2 billion in 2010 reflecting an increase of 25% in one year.
According to this report, Pakistan’s economy faced adverse shocks in 2011 including massive floods, oil commodity price fluctuations, to mention only the major ones. The economic growth was registered at 2% against the target of 4% in the fiscal year 2011.
The telecom sector exhibited stability in the fiscal year 2011 as its indicators displayed positive trends. Telecom revenues increased by 5.4% and tax collection shot up by 7.2% in 2011 compared to last year.
At the end of FY 2011 teledensity of the country was recorded at 68.39 % demonstrating 6.7% expansion compared to last year. Mobile sector contributes over 95% to the total teledensity of the country as increase in mobile penetration from 60.4% during 2010 to 64.9% during FY 2011 resulted in improvement of 4.3 % points in the total teledensity.