ISLAMABAD: The economic slowdown and increased operational costs have resulted in slower growth of the cellular mobile sector, says the Economic Survey 2022-23.

The survey noted that IT exports during July-March fiscal year 2023 stood at $1.94 billion compared to $1.95 billion during the same period last year, registering a decline.

The telecom sector drew over $6.3 billion investment in Pakistan during 2018-2022. Telecom investments reported by telecom operators during the fiscal year 2022 reached a significant amount of $2,073 million due to spectrum acquisition and network expansion; however, it remained low at $422.0 million (provisional) during the first two quarters of the fiscal year 2023.

The telecom sector remained a significant source of revenue generation for the national exchequer during FY2022 and contributing Rs327 billion in the form of general sales tax (GST), withholding tax, regulatory fees, initial and annual license fees, and other taxes. During July-December FY2023, the telecom sector contributed Rs139 billion (provisional) to the national exchequer.

Increased activity in the telecom sector enabled telecom operators to generate revenues of Rs694 billion in FY2022, registering a healthy growth of 6.6 percent. The economic slowdown and increased operational costs have resulted in slower growth of the cellular mobile sector.

As per provisional data, revenues from the telecom sector in the first two quarters of FY2023 stood at Rs378 billion (provisional).

Copyright Business Recorder, 2023