Telecom Sector Growth
In the annual report published by the PTA, it has been reported that the telecom sector achieved a record high revenue of Rs 694 billion in the financial year 2021-22 as the use of telecom services grew substantially.
While there is little positive news on the economic front currently, it is encouraging to see how the sector attracted an investment of $ 2.07 billion and contributed Rs 325.2 billion to the national exchequer, including Rs 222.7 billion in taxes. The latest report outlines a variety of encouraging trends that only point towards the immense potential of this sector.
Despite the year being marked by rising inflationary pressures and profitability concerns, the telecom sector performed considerably well. One noticeable achievement is that for the first time in the country’s history, the import volume of mobile handsets registered a decline as most of the demand was met through locally manufactured products. Pakistan produced a record 41.35 million mobile handsets, however, the number of smartphones was at half of last year’s volume as only 17.3 million smartphones were assembled from January to September 2022.
Of course, this has also come about because of the exorbitant taxes imposed by the PTA on foreign handsets, but this is still good for our local industry in terms of the technology transfer and skilled jobs that have been created locally. It is also good to see how many international brands such as Samsung, Nokia, Xiaomi, Oppo, Vivo, Techno, and Infinix have already entered Pakistan’s market as manufacturers. Apart from this, biometrically verified SIMs/subscribers have increased to 194 million, whereas, broadband subscriptions grew to 124 million with 56 percent penetration.
In addition, annual mobile data usage has also seen an annual increase of 31 percent. These are all encouraging signs as the Global System for Mobile Communications Association has rated Pakistan as an ‘emerging’ telecom market. However, a lot more needs to be done in terms of creating a conducive regulatory environment and facilitating the growth of the sector. Greater internet penetration and access to telecom services are key for digital and financial inclusion across the country, and also in terms of literacy and skills-building programs, especially because of the disruption caused by Covid and the recent devastating floods.
Source: The Nation
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