Pakistan’s telecom, VC firms seek tax relief

A delegation of telecom infrastructure companies and venture capital (VC) firms has proposed rationalising and relaxing elements of Pakistan’s tax regime to boost sector growth, attract investment, and support expansion in the telecom and VC sectors.

Finance Minister Muhammad Aurangzeb held a meeting at the Finance Division with a delegation comprising telecommunication infrastructure companies (TOWERCO Pakistan) and Venture Capital Firms (VCs) to discuss and review key sectoral issues, with a particular focus on taxation, investment climate, and growth prospects, read a statement on Friday.

The meeting was attended by Federal Minister for IT & Telecommunications Shaza Fatima Khawaja, Chairman Federal Board of Revenue (FBR); Chairman Securities and Exchange Commission of Pakistan (SECP); senior officials of the Ministry of Information Technology and Telecommunication; and representatives of TOWERCO Pakistan, venture capital firms, legal and regulatory advisory firms, and relevant public sector organizations, including Ignite.

During the meeting, participants shared an overview of their respective business models, operational dynamics, and on-ground challenges, particularly those related to physical infrastructure deployment and regulatory compliance.

Members of the delegation presented a number of proposals aimed at rationalising and relaxing elements of the existing tax regime to help facilitate further growth, enhance investment flows, and support expansion in both the telecommunications infrastructure and venture capital sectors. The proposals were shared in the context of strengthening digital connectivity, improving service delivery, and fostering innovation-led economic activity in the country.

Addressing the meeting, the finance minister acknowledged the critical role played by telecom infrastructure companies in enabling nationwide digital connectivity and underscored the importance of venture capital in supporting entrepreneurship, innovation, and job creation. He noted that a predictable, transparent, and growth-oriented policy and tax framework is essential to attract long-term investment and to ensure sustainable development of these sectors.

The finance minister emphasised that the government is committed to facilitating private sector-led growth, particularly in technology-driven and investment-intensive sectors. He stated that while fiscal considerations remain important, the objective is to strike a balanced approach that supports business expansion, encourages formalisation, and strengthens Pakistan’s digital and innovation ecosystem over the medium to long term.

During the meeting, it was agreed that a dedicated working group would be constituted, comprising representatives from the Tax Policy Office and other relevant stakeholders, to undertake a detailed examination of the proposals and recommendations presented by the delegation. The working group will assess the proposals in detail and develop actionable recommendations.