Telecom sector adds Rs583bn to national treasury

ISLAMABAD: The telecoms sector, a significant source of revenue generation, has contributed around Rs 582.95 billion to the national exchequer during the last three and a half years.

Major telecom contribution of Rs 243.28 billion to the national kitty was registered during the year 2013-14 while 2014-15 witnessed a contribution of Rs 126.26 billion.

Similarly, during 2015-16, the telecom sector contributed Rs 159.65 billion while the first two quarters of 2016-17 brought Rs 53.76 billion in.

Sources at Pakistan Telecommunication Authority (PTA) said that the contributions comprised all PTA's receipts including Initial and Annual License Fees, Annual Radio Frequency Spectrum, Spectrum Administrative Fee, Universal Service Fund (USF) and Research & Development Fund Contributions, APC for USF, Numbering Charges, License Application fee etc.

The others included Custom Duties, With Holding Tax (WHT) and other charges.

The sources said the commercial launch of 3G and 4G services has opened new opportunities for revenue generation for the mobile operators.

Availability of 3G and 4G services has enabled development of new applications and database services, and people of Pakistan are quickly adapting to these new technologies and services.

Moreover, the sources said there has also been a consistent growth in Information Technology (IT) remittances over last decade at a Compound Annual Growth Rate (CAGR) of around 23 per cent. There has been an impressive growth approximately 97 percent in IT remittances over last four years.

Hence, Pakistan's IT exports are estimated to have crossed $ 2.8 billion a year at present as per estimation standard of Bearing Point. Annual domestic revenue is around $500 million.

Total revenue of the national IT industry is estimated to be around $3.3 billion a year at present.