Pakistan’s Telecom Sector earns Rs 694 bn Revenues in FY22
During FY22, Pakistan’s Telecom sector generated record revenues of Rs 694 billion. According to the Pakistan Telecommunication Authority (PTA), the telecom sector got revenues of Rs 651 billion during the same period of 2020-21. PTA reveals that the economic slowdown and increased operational costs resulted in slow growth in the last quarter.Pakistan’s Telecom Sector earns Rs 694 bn Revenues in FY22The sector substantially contributed Rs325.2 billion to the national stakes. Among these, Rs 223 bn was in the form of taxes. It includes Rs 77 billion as General Sales Tax (GST) and Rs 100 billion as Withholding Tax. However, the remaining Rs102.5bn billion proceeded from Next Generation Mobile Services (NGMS) auction (Rs30 billion) and license renewals (Rs72 billion).
As mentioned above, PTA also deposited Rs 102.5 billion in the Federal Consolidated Fund (FCF), primarily on account of proceeds from the NGMS auction and license renewals; this was Rs 53 billion more than the amount budgeted in the federal budget 2021-22.
On the other hand, the Foreign Direct Investment (FDI) in the telecom sector declined by $168 million in 2021-22. The FDI inflow in the telecom sector was $168.4 million, the outflow was $197.6 million, and the net FDI was $29.1 million. As a quick comparison, FDI was $202 million in 2020-21.