Telecom sector registers 20% growth
Pakistan’s fiercely competitive telecommunications sector has grown by an outstanding 20% by generating Rs 327.8 billion as revenues in fiscal year 2008-09. According to the Pakistan Telecom Authority (PTA), the telecoms sector paid Rs 112 billion in tax and the teledensity of Pakistan is 62%, amounting to a growth rate of 5.4%.
The PTA stated in its annual report that the telecom sector attracted $815 million Foreign Direct Investment in 2008-09. However, due to the current economic upheaval and liquidity crisis, telecom operators have been obliged to delay their expansion plans. Nevertheless total investments in the sector stood at $1.7 billion.
Highlights of 2008/09
- The telecom sector contributed Rs 112 billion to the national exchequer in the form of taxes
- Telecom imports grew by 20% to $1.6 billion
- Mobile penetration reached 58.2% of the total population
Tax rates were reduced on the telecom industry as GST was lowered from 21% to 19.5%.
- Activation tax was reduced by 50% and import duty on mobile handsets was reduced by 66% from Rs 750 to Rs 250 in Budget 2008-09.
|
