Govt Urged to Reduce Taxes on Mobile Phones

The Senate Standing Committee urged the Pakistan Telecommunication Authority (PTA) to bring down mobile phone taxes to cheaper rates so that the common man could afford them. (Although the PTA does not have the jurisdiction to reduce taxes on mobile phones, this authority lies with the FBR). Secretary IT & Telecom informed the Senate Standing Committee on IT today that a fiberization policy and the arrival of 5G in Pakistan will improve internet services across the country. Highlighting export performance, an IT Ministry official informed the panel that IT exports grew by 37 percent in 2024, reaching $3.3 billion in the first 11 months compared to $2.4 billion in the same period in 2023. However, the compound growth rate over the past five years stood at just 23 percent. The official also noted that IT exports had been slightly impacted by COVID-19 but recovery has been strong. The discussion turned to infrastructure. Secretary IT and Telecom announced the addition of four new submarine cables to improve internet connectivity, with three set to be operational within a year. Senators raised concerns about persistent connectivity issues in regions like Balochistan and Khyber Pakhtunkhwa. One member complained of daily disruptions in these areas and the difficulties faced in securing permits for mobile towers. Another participant criticized slow internet speeds in Sindh, specifically in Larkana, despite substantial investments in connectivity. The committee also discussed the impact of internet shutdowns on affected districts. Chairman PTA Major General (R) Hafeez Ur Rehman acknowledged fiber connectivity challenges in Balochistan. Meanwhile, Secretary IT and Telecom informed the committee that the Universal Service Fund (USF) had initiated Ex-FATA projects with ₨. 3 billion invested to improve connectivity in the merged districts.