Govt to Form Working Group on Tax Proposals From Telecom Infrastructure Firms, VCs

 Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Friday reviewed key sectoral issues faced by telecom infrastructure companies and venture capital firms, with a focus on taxation, investment climate and growth prospects. The meeting was held at the Finance Division and included representatives of telecom infrastructure companies operating mobile network towers under TOWERCO Pakistan, along with venture capital firms investing in startups and other business ventures. It was agreed during the meeting that a dedicated working group would be formed, comprising representatives from the Tax Policy Office and other relevant stakeholders, to review the proposals in detail and develop actionable recommendations. During the discussion, the delegation briefed the finance minister on their business models, operational challenges and regulatory issues, particularly those related to infrastructure deployment and compliance requirements. Participants proposed several measures aimed at easing and rationalising parts of the existing tax regime to encourage further growth, attract investment and support expansion in both the telecom infrastructure and venture capital sectors. The proposals were presented in the context of improving digital connectivity, service delivery and innovation-driven economic activity. Addressing the meeting, the finance minister acknowledged the role of telecom infrastructure companies in expanding nationwide digital access and highlighted the importance of venture capital in promoting entrepreneurship, innovation and job creation. He said a predictable and transparent policy and tax framework is essential to attract long-term investment and ensure sustainable sector growth. He added that the government remains committed to supporting private sector-led growth, particularly in technology-driven and investment-intensive sectors. The finance minister noted that while fiscal discipline remains important, the government aims to adopt a balanced approach that supports business expansion, encourages formalisation and strengthens Pakistan’s digital and innovation ecosystem over the medium to long term. Federal Minister for Information Technology and Telecommunications Shaza Fatima Khawaja also attended the meeting, along with the chairman of the Federal Board of Revenue, the chairman of the Securities and Exchange Commission of Pakistan, senior officials from the IT ministry and representatives of relevant public sector bodies, including Ignite.