Published On: Thu, Jun 1st, 2017

Pakistan Telecom Sector Revenue Expected to Grow in 2017

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Pakistan Telecom Sector RevenueThe recently released Economic Survey of Pakistan 2017 showed that during the first two quarters of the Financial Year 2016-17, the Pakistan telecom sector revenue reached an estimated Rs. 234.9 billion.

According to available statistics, revenues of the telecom sector stood at Rs 454.4 billion in the full financial year of 2015-16. Doubling the figures to compare on a yearly basis, the revenues of the telecom sector will be settled at Rs 469.8 billion for 2016-17, which is 3.3 percent or Rs 15.4 billion higher than previous year.

The growth in Pakistan telecom sector revenue can be measured as an ambitious target as revenues should either match the level of previous year or record slight growth in the current financial year 2016-17.

The mobile operators have open themselves to enormous opportunities for revenue generation with the commercial launch of 3G, 4G and LTE services, according to Economic Survey of Pakistan.

Ever since there has been wide availability of 3G and 4G services – development of new apps and data based services have picked pace and people are adapting these new services and technology.

The total tele density reached 72.36 percent at the end of March showing the positive growth of Pakistan telecom sector during the first two quarters of FY 2016-17.
This growth has been a result of growth in number of cellular mobile subscribers. It was 70.81 percent at the end of last fiscal year.

Telecom Sector and Economy

Pakistan telecom sector contributed an estimated Rs. 53.76 billion to the national exchequer in terms of regulatory fees, activation tax, taxes, initial and annual license fees and other charges during the first two quarters of the FY 2016-17.

It had been significantly higher in the previous financial year and stood at Rs. 159.65 billion. The telecom sector’s contribution through non-taxes revenues seem to show negative growth during the closing of current financial year.

Telecom Sector Investment

Telecom operators have invested $287.6 million from July to December, 2016 – cellular mobile sector being the main investor according to the Economic Survey of Pakistan 2017, with an investment of $262 million during first two quarters of FY 2016-17.

The overall investment momentum that took off in FY 2012-13 has still continued and 3G, 4G and LTE services continue to receive investments.

Compared to the investment numbers provided by the Ministry of Information Technology (MoIT), the State Bank of Pakistan’s numbers show a depressing situation of the foreign direct investment in the telecom sector – showing a negative trend of $82 million even from July to April for current Financial Year 2016-17.

The investment numbers from MoIT and SBP may differ also because the ministry numbers include investment made by individual companies not from their headquarters but what they invested through their regular earning from the local market or investment made through borrowing of loans from local banks. SBP’s figures however do not take those figures into account.

About the Author

- An enthusiast working in Dubai as an Assistant Operations Manager. Writing about Pakistan and the latest happenings, trends around the globe is my passion. A dreamer, learner and a major foodie.