Home »Budgets » Analysis » Security situation hampers telecom investment

  • News Desk
  • Jun 1st, 2012
  • Comments Off on Security situation hampers telecom investment
The Economic Survey (2011-2012) on Thursday categorically stated that due to tough terrain/security situation, telecom companies were reluctant to further invest in the country. It also stated that Pakistan''s cellular sector faced a tough economic and business environment during the last fiscal year due to taxes, power crisis, untoward security situation and natural calamities.

The survey stated that telecom companies had invested over $12 billion in infrastructure and other projects over the past six years. It, however, admitted that there "are untouched lands and grey areas that need new or improved infrastructure". It further states that telecom sector made its highest-ever contribution to the national exchequer in 2011, as almost Rs 117 billion were deposited by the telecom companies, showing 7 percent growth during the year. During the first two quarters of 2012, Rs 58.1 billion had been deposited to the national exchequer.

Telecom sector''s revenue, it said, reached an all-time high during 2011-12, standing at Rs 363 billion against last year''s Rs 344.2 billion, showing an increase of 5.4 percent. During 2011-12, cellular revenue increased by 11 percent, reaching Rs 26.27 billion against Rs 23.6 billion in the previous year.

During the first two quarters of 2012, Rs 19.76 billion worth of revenue has been generated by telecom sector. Foreign Direct Investment (FDI) by the telecom companies was more than 30 percent of the total FDI during the past six years. Telecom companies reduced FDI because they had already laid down the required infrastructure. In 2011, telecom sector attracted over $79 million FDI which is about 5 percent of the total FDI in Pakistan in 2011.

According to the survey, there has been a cumulative investment of approximately $2.5 billion in the electronic media industry in Pakistan. New jobs to more than 200,000 people of diversified skills and qualifications have been provided.

Copyright Business Recorder, 2012


the author

Top
Close
Close