Pakistan's Telecom sector to attract US$ 5-8 bln in 5 yrs
Pakistan Times Business & Commerce Desk

ISLAMABAD: A tremendous growth has been witnessed in telecom sector with the hope to attract upto US $ 8 billion Foreign Direct Investment (FDI) in the country during next 3 to 5 years.

Pakistan Telecommunication Authority (PTA) had created a investors friendly environment by awarding telecom licenses in a fair and transparent manner which  has increased FDI considerably.

Last year, PTA issued a number of licenses in the telecom sector which created about 37,000 direct and in direct employment opportunities.

The PTA generated about Rs. 30 billion as initial license fee from new licenses (mobile, fixed and spectrum for WLL). This contribution would have for reaching impact to the economy of Pakistan in coming years.

According to PTA sources here on Friday, indirect employment is being provided through franchises, venders and distributors of the telecom companies entered in the telecom market of Pakistan.

The fixed line services in Pakistan have also shown magnificent growth patterns over the years. This has been evident from the increased tele-density over the years.

The Card Payphones sector shown a tremendous growth over the years. In the year 2000-2001 there were only 10,400 card payphones in the country and the number has reached to 184,669 in July 2004.

The growth in this sector is basically due to liberalized policy, competition, reduction in regulatory charges and reduction in tariffs of telecom services.

For last couple of years there has been a drastic worldwide shift of users from conventional internet access to broadband access. Keeping this in mind, PTA has allowed all the ISP's to offer broadband services.

This has been decided in the greater interest of the users and the telecom industry for fostering broadband services. The share of telecom sector in GDP has increased from 1.5% in the year 1999-2000 to 1.7% in the year 2003-04.

It is expected that total share of telecom sector in GDP would increase to 3% in the coming 5 years when new operators would roll out their networks in the country.

The telecom sector has witnessed 5 per cent increase in General Sales Tax and Central Excise Duty collection during fiscal year 2004 as compared to the previous year.

The revenues in terms of GST and CED increased significantly as in just two months (July-August 2004), the government collected over Rs. 2 billion from fixed line and cellular areas.●