ISLAMABAD  – The failure of the government to launch 3G license during the current fiscal year 2011-2012 will further keep the country’s nascent economy under intense pressure as it was expected to generate Rs75 billion.

An official who wished no to be named told Online here that the failure of launching of the 3G spectrums till the end of June 30 this year will leave far-reaching negative impact and will further swelling the already widen budget deficit of the country. It will increase budget deficit 0.35 per cent or Rs.75 billion of the Gross Domestic Product (GDP).

However, Pakistan Telecommunication Authority (PTA) has stance of completing the transaction in the third week of June because any amount coming after June 30 this year will have no impact on lowering the deficit.

“The auction of 3G licensing might be delayed to indefinite period if the government does not relax Public Procurement Regulatory Authority (PPRA) rule for the auction,” said the official.  According to Pakistan Telecommunication Authority (PTA) Chairman Dr. Muhammad Yaseen 3G is need of the hour and PTA had requested to the government to wave off PPRA rule for quick transaction of the 3G licensing.

 If the government approved wave off, then it is possible to hold bidding in May 2012 and in case of not granting the facility, then the PTA will try to hold the bidding in mid-June 2012.

According to the independent Economists the government will not be able to achieve current fiscal year’s revised budget deficit target of 4.7 per cent because of resource-constraints, debt repayments and a lack of external assistance. Pakistan had already started repaying to the International Monetary Fund (IMF) loan last month with a $399 million payment which will also affect government efforts to keep budget deficit in control.