Telecom sector revenue hits Rs850b

Despite economic challenges, including inflation, high business costs, sector showcased robust performance

ISLAMABAD:

Pakistan’s telecom sector exhibited resilience, recording a 17% growth in revenues, reaching Rs850 billion in 2022-23, as per the Pakistan Telecommunication Authority annual report. Despite economic challenges, including inflation and high business costs, the sector showcased robust performance, with local investments totalling $5.7 billion and foreign direct investment amounting to $1.4 billion over the last five years.

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The report highlighted the telecom industry’s contribution of Rs1.27 trillion to the national treasury during FY2018-19 to FY2022-23. The PTA highlighted ongoing efforts to integrate satellite broadband, particularly via High Throughput Satellite systems. While the Average Revenue Per User was acknowledged as low, the PTA recommended industry measures such as infrastructure sharing and cost-effective strategies to meet capacity demand. Mobile broadband usage surged from 37% to 65% among subscribers from 2017-18 to 2022-23, with 90% now utilising 4G. The report recognised theat for 5G deployment, with a draft policy guideline in place. However, infrastructure upgrades, including fibre optic connectivity to 40% of towers, are essential for a widespread 5G launch.

Published in The Express Tribune, January 31^st, 2024.

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