FDI in telecom sector witnesses negative trend


ISLAMABAD - Pakistan Telecommunication Authority (PTA) in its annual report 2012 has revealed that foreign investment in telecom sector has witnessed negative trend due to transfer of more than $800 million to foreign countries by few companies.Though direct foreign investment during last financial year stood at $80crore and 30lac yet $81crore and 30lac were transferred to foreign countries by few companies of the sector and due to which size of direct foreign investment has turned negative. In 2006, size of direct foreign investment was $6 billion. The regulatory body (PTA) also disclosed that country’s 90 per cent of total population has access to telecom services while number of consumers of mobile phone is more than 12crore. During financial year 2012, the mobile phone consumers have dropped 277 billion mobile SMS, 192 billion minute mobile phone calls in the country while 15 billion minute calls in foreign countries were made. Country’s investment during PPP-led coalition government had witnessed reduction of $3 billion and 76crore while the size of country’s investment in 2007 was $4 billion which is now decreased to a reduced level of $24crore.The Pakistan Telecommunication Authority (PTA) has blocked 7lac and 8341 mobile phones while blocking IMEI numbers of the mobile phone after the complaints of theft or absence and 38 thousands mobile phone sets were restored after their receiving during financial year 2012.It is also learnt that telecom sector is facing heavy taxes which needs to be reviewed. Duration of foreign countries calls increased to 9billion which has reached to 20billion annual.

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