Telecom Sector Revenues Reach Rs. 488 Billion in 2017-18

Telecom sector’s revenue has steadily increased to Rs. 488.75 billion during 2017-18 showing a YoY growth of 3.96%, said Pakistan Telecommunication Authority in its annual report that is available with ProPakistani.

According to official figures, mobile phone companies generated a total of Rs. 382.41 billion in revenues during the reported period, while fixed-line operators (LL + WLL) made Rs. 77.41 billion during the time.

LDI operaters generated Rs. 22.61 billion and CVAS and BB operators made Rs. 6.67 billion during the FY 2017-18.

Telecom Revenues 

	2014-15	2015-16	2016-17	2017-18
Cellular	317,016	345,537	367,530	382,410
Fixed (LL+WLL)	81,874	82,229	76,465	76,465
LDI	40,890	26,759	20,109	22,261
CVAS + BB	2,468	2,499	6,031	6,668
Total	442,248	457,024	470,135	488,750

Figures are in Million Rupees
Source: Pakistan Telecommunication Authority 

Telecom investment stood at $670.3 million during 2017-18 as compared to $644.5 million in 2016-17, registering an increase of $25.8 million. It stood at $1.815 billion in 2013-14, $1.005 billion in 2014-15, $730.9 million in 2015-16, the report added.

Pakistan attracted $568.1 million in investment from cellular mobile companies in 2017-18 against $468.1 million during the same period last year, registering an increase of $100 million.

Long Distance International (LDI) attracted investments of $14.9 million in 2017-18 as compared to $11.3 million in 2016-17 while fixed line brought $87.3 million in 2017-18 as compared to $147.1 million during the same period last year.

Net Foreign Direct Investment (FDI) summed up to $71 million during 2017-18, as inflow in the telecom sector remained $246.9 million with outflows of $174.5 million.

Telecom Investments

	2014-15	2015-16	2016-17	2017-18
Cellular	977.6	659.4	486.1	568.1
LDI	12.2	8.9	11.3	14.9
Fixed	15.5	62.6	147.1	87.3
Total	1,005.3	730.9	644.5	644.5

Figures are in $US Million
Source: Pakistan Telecommunication Authority

Telecom sector contribution to the national exchequer is on a continuous decline, coming in at Rs. 147.23 billion during 2017-18 as compared to Rs 161.43 billion in 2016-17 – a decline of over Rs 14 billion.

Telecom contribution to the national exchequer was Rs 243.88 billion in 2013-14, Rs 126.26 billion in 2014-15, Rs 160.17 billion in 2015-16, which has now declined even further to Rs 147.23 billion in 2017-18, revealed official documents available with Business Recorder.

The telecom sector contributed around Rs. 147.23 billion to the national exchequer in the form of General Sales Tax (GST), Withholding Tax (WHT) and PTA deposits including license fees, and spectrum fees in addition to levies by the local governments and the custom duties by Federal Board of Revenue (FBR).

Telecom Contribution to National Exchequer

	GST	PTA’s Deposits*	Others**	Total
2013 – 14	60.12	104.6	79.16	243.88
2014 – 15	45.77	7.0	73.49	126.26
2015 – 16	44.25	34.1	81.82	160.17
2016 – 17 (R)	46.20	33.13	82.10	161.43
2017 – 18 (E)	48.18	14.90	84.15	147.23

Source: Pakistan Telecommunication Authority
Figures are in Billion Rupees
R = Revised
E = Estimated
*PTA’s contributions comprise of all its receipts including Initial and Annual License Fee, Annual Radio Frequency Spectrum Fee, Annual Spectrum Administrative Fee, USF and R&D Fund Contributions, APC for USF, Numbering Charges, License Application Fee etc.
**Others include custom duties, WHT and other taxes.

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