Telecom industry, FDI, investment: PTA says contributions to exchequer decline

Updated 01 Mar, 2022

ISLAMABAD: Telecom industry's investment, Foreign Direct Investment (FDI) and contribution to the national exchequer declined by four percent, 26 percent, and 23 percent, respectively, during 2020-21 compared to 2019-20, revealed the Pakistan Telecommunication Authority (PTA).

The authority’s annual report 2021 revealed that telecom industry revenues increased by around nine percent as it jumped from Rs590.301 billion in 2019-20 to Rs644 billion in 2020-21.

Investment by the telecom industry witnessed a decline of around four percent and remained $1.093 billion in 2020-21 compared to $1.128 billion in 2019-20.

Investment by Cellular Mobile Operators (CMOs) remained $667.7 million in 2020-21 compared to $568.7 million in 2019-20, $362.9 million in 2018-19, and $562.4 million in 2017-18.

Class Value Added Services (CVAS)/FLL investment stood at $245.5 million in 2020-21 compared to $231.8 in 2019-20, $167.2 million in 2018-19 and $130 million in 2017-18.

Long Distance and International (LDI) investment stood at $31.3 million in 2020-21 compared to $74.6 million in 2019-20, $30.6 million in 2018-19 and $24.8 million in 2017-18.

Telecom Infrastructure Provider (TTP/TIP) investment stood at $139.4 million in 2020-21 compared to $253.7 million in 2019-20, $117.1 million in 2018-19 and $143.6 million in 2017-18.

The FDI inflow in telecom sector during 2020-21 was $202.34 million, outflow was $167.5 million and net inflow was $34.8 million compared to inflow $763.3 million, outflow of $140.8 million and net inflow of $622.5 million in 2019-20.

Telecom sector contribution to the national exchequer declined by around 23 percent in 2020-21, remaining Rs225.80 billion compared to Rs290.12 billion in 2019-20.

The GST from the telecom sector remained Rs67.4 billion in 2020-21 compared to 47.79 billion in 2019-20. The PTA deposits remained Rs44.84 billion in 2020-21 compared to Rs141.23 billion in 2019-20. Others (WHT, income taxes, customs duty, and other taxes) contributed Rs116.23 billion in 2020-21 compared to Rs101.10 billion in 2019-20.

The GST from cellular increased from Rs28.398 billion in 2019-20 to Rs44.530 billion in 2020-21, from the CVAS increased from Rs12.194 billion in 2019-20 to Rs13.178 billion, from LDI decreased from Rs1.928 billion to Rs1.614 billion, from TTP/TIP decreased from Rs5.273 billion to Rs3.408 billion respectively.

Among other taxes, from cellular it increased from Rs85.49 billion in 2019-20 to Rs97.666 billion in 2020-21, from CVAS increased from Rs7.514 billion to Rs7.920 billion from LDI increased from Rs3.2 billion to Rs3.7 billion from TTP/TIP decreased from Rs4.7 billion to Rs4.6 billion respectively.

The CMOs revenue remained Rs461.668 billion in 2020-21 compared to Rs425.961 billion in 2019-20, Rs447.311 billion in 2018-19, and Rs383.646 billion in 2017-18.

Among CMOs, Jazz revenue stood at Rs194.961 billion in 2020-21 compared to Rs174.821 billion in 2019-20, Rs180.407 billion in 2018-19, and Rs147.031 billion in 2017-18.Zong revenue stood at Rs105.293 billion in 2020-21 compared to Rs95.414 billion in 2019-20, Rs100.740 billion in 2018-19, and Rs72.409 billion in 2017-18.

Telenor revenue stood at Rs103.737 billion in 2020-21 compared to Rs100.425 billion in 2019-20, Rs102.226 billion in 2018-19, and Rs109.744 billion in 2017-18.Ufone revenue stood at Rs55.040 billion in 2020-21 compared to Rs53.632 billion in 2019-20, Rs62.280 billion in 2018-19, and Rs53.230 billion in 2017-18.

The Special Communication Organization (SCO) revenue stood at Rs2.637 billion in 2020-21 compared to Rs1.669 billion in 2019-20, Rs1.657 billion in 2018-19, and Rs1.232 billion in 2017-18.The CVAS revenue stood at Rs12.494 billion in 2020-21 compared to Rs11.092 billion in 2019-20, Rs11.626 billion in 2018-19, and Rs8.932 billion in 2017-18.

The FLL revenue stood at Rs77.186 billion in 2020-21 compared to Rs75.067 billion in 2019-20, Rs66.126 billion in 2018-19 and Rs76.161 billion in 2017-18.The LDI revenue stood at Rs42.657 billion in 2020-21 compared to Rs37.036 billion in 2019-20, Rs39.251 billion in 2018-19, and Rs34.002 billion in 2017-18.

The TTP/TIP revenue stood at Rs28.621 billion in 2020-21 compared to Rs33.756 billion in 2019-20, Rs32.847 billion in 2018-19, and Rs32.146 billion in 2017-18.

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