Govt asks key players, investors to help with issues facing telecom tower companies

ISLAMABAD: Amid mounting challenges faced by telecom tower companies in deploying and operating physical infrastructure across the country, the federal government on Friday engaged key industry players and investors to address taxation, regulatory hurdles, and investment constraints choking growth in Pakistan’s digital connectivity sector.

Federal Minister for Finance and Revenue Muhammad Aurangzeb held a high-level meeting at the Finance Division with a delegation of telecommunication infrastructure companies under the TOWERCO Pakistan and leading venture capital firms, where these challenges were highlighted.

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 and develop actionable recommendations.

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The visiting delegation represented a broad spectrum of stakeholders, including telecom infrastructure companies that build, own and operate mobile network towers leased to mobile network operators, as well as venture capital firms actively investing in Pakistan’s startup ecosystem and wider business ventures.

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 some proposals aimed at rationalizing 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.

Copyright Business Recorder, 2025