Telcos Unhappy Over Being Ignored By Govt in Electricity Price Relief Package

Telecom operators have welcomed the government’s recent decision to reduce the electricity tariff for general consumers, but have expressed disappointment over the exclusion of the IT and telecom sectors from the price cut. The reduction of Rs. 7.41 per unit for general consumers has been hailed as a positive development, but telecom operators believe more should have been done for their industry. Kamal Ahmed, the General Secretary of the Telecom Operators Association, voiced his concerns in an exclusive conversation with ProPakistani. He pointed out that while the government has provided relief to various industries, including the poultry sector, no similar relief has been extended to the telecom industry. Despite the telecom sector being granted “industry” status in 2004, it continues to face high operational costs due to the lack of electricity tariff reduction for its core components. Operators are particularly upset that data centers, an integral part of the IT and telecom industry, were excluded from the price reduction. “Surprisingly, data centers and telecom companies were left out of this reduction,” said Ahmed, emphasizing the essential role these centers play in maintaining the digital infrastructure of the country. “Where is the dream of Digital Pakistan if vital sectors like ours continue to face such financial burdens?” he added. The four major cellular operators, Telenor, Ufone, Jazz, and Zong, with the support of the Ministry of IT, have been advocating for a change in the tariff structure for years. They have repeatedly requested the government to implement a tariff system based on the industry’s “industrial” status, which will significantly reduce costs for telecom operators. These companies believe that charging them commercial rates, rather than industrial ones, is an unfair practice. The recent announcement of the electricity tariff reduction by Prime Minister Shehbaz Sharif came as a relief for residential and commercial consumers. The Prime Minister disclosed that the electricity rate for residential consumers would be reduced by Rs. 7.41 per unit, bringing the cost down to Rs. 34.37 per unit. Similarly, the tariff for commercial users was reduced by Rs. 7.59 per unit. Despite these cuts, the telecom sector remains excluded, and the operators have vowed to raise the issue with the Ministry of IT and higher authorities, calling for the implementation of an industrial tariff for their industry.