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Category: IT & Telecom

Explore IT and Telecom stories with Pakistan Revenue, your go-to source for the latest updates on Pakistan’s technology and telecom sector. Stay ahead with real-time industry insights and economic developments.

  • TPL Trakker to use Telenor’s location based services

    TPL Trakker to use Telenor’s location based services

    KARACHI: TPL Trakker and Telenor Pakistan have signed an agreement under which Telenor Pakistan will provide location base services (LBS).

    TPL Trakker powers the technology via TPL Maps, the company’s mapping arm and Pakistan’s first digital mapping service licensed by the Survey of Pakistan, a statement said on Thursday.

    Using LBS, Telenor Pakistan will make use of the most detailed and localized location dataset ever offered in Pakistan. Following the partnership, Telenor Pakistan will have access to data covering 600,000 km of road network, 3 million points of interest (POIs), which will enable the telecom operator to offer tailored products and solutions for B2B customers as per their needs.

    The move is in line with TPL Trakker’s vision to create value for different industry verticals through digital transformation, enhancing connectivity between people, mobile assets and businesses.

    This will pave the way for Mobile Network Operators to venture into diverse location-centric solutions adding to the rising popularity of TPL’s cutting edge mapping and automation API solutions for apps.

    Speaking on the collaboration, Sarwar Ali Khan, CEO, TPL Trakker said, “TPL has developed indigenous Location Based Services to fuel the rapid growth of technology companies in Pakistan. Mobile Network Operators are ingrained in the national economy and they rely heavily on cutting-edge location data and services. We expect closer collaboration with each player for our Location Based Services as we look forward to a long and fruitful relationship with one of Pakistan’s leading Mobile Network Operators.”

    With a plan to accelerate the growth of the telecommunication services industry, the two companies will create a modern, value-driven and globally competitive Pakistan.

  • PTA suspends PUBG

    PTA suspends PUBG

    ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Wednesday suspended online gaming application namely PUBG with immediate effect due to adverse effect on children health.

    According to a statement issued by the authority it had received complaints from different segments of society. Therefore, it has been decided to suspend the PlayerUnknown’s Battlegrounds (PUBG) game.

    The PTA has received numerous complaints against PUBG wherein it is stated that the game is addictive, wastage of time and poses serious negative impact on physical and psychological health of the Children.

    The authority noted that cases of suicide attribute to PUBG game were reported. The Lahore High Court (LHC) has also directed PTA to look into the issue and decide the matter after hearing the complaints. In this regard, a hearing is being conducted on July 09, 2020.

    The authority also decided to solicit views of the public with reference to the said online game. In this regard public is encouraged to provide feedback through [email protected] by July 10, 2020.

  • Ufone awarded Rs518 million next generation broadband projects

    Ufone awarded Rs518 million next generation broadband projects

    ISLAMABAD: Universal Service Fund on Monday awarded contracts to PMTL (Ufone) for Next Generation Broadband for Sustainable Development Projects in Balochistan worth Rs518 million.

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  • Pakistan spends Rs179 billion for mobile phone import

    Pakistan spends Rs179 billion for mobile phone import

    ISLAMABAD: Pakistan has spent over Rs179 billion for import of mobile phones during July – May 2019/2020, which is 90 percent higher than the same period of the last fiscal year.

    According to Pakistan Bureau of Statistics (PBS), the country imported mobile phones worth Rs179 billion during first eleven months of the current fiscal year, which was Rs93.78 billion in the corresponding period of the last fiscal year.

    Market sources said that reduction in duty and taxes and restriction of registration with the Pakistan Telecommunication Authority (PTA) has increased the import of mobile phones through legal channels.

    The import of mobile phones in terms of US Dollars also increased to $1.14 billion during the period under review as compared with $698 million in the corresponding period of the last fiscal year.

    Despite imposition of lockdown in the country to prevent coronavirus, the country imported mobile phones worth Rs17.78 billion in May 2020, which is 127 percent higher when compared with Rs7.83 billion in April 2020.

    The market sources said that due to lockdown the importance of digital economy had increased. They said that financial transactions were being done through mobile phones, which were the easiest way.

  • ECC okays mobile device manufacturing policy

    ECC okays mobile device manufacturing policy

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved mobile device manufacturing policy.

    The policy is aimed at to promote local manufacturing and assembly of mobile phone handsets.

    The policy approved in a meeting of the ECC chaired by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh is aimed at ensuring localisation and indigenization of the parts of the mobile phones.

    Earlier, the ECC was told that under the Mobile Device Manufacturing Policy, parts of mobile phone handsets will be used for the entire range of mobile phone handsets produced in Pakistan instead of limited to a particular model.

    The policy will have a positive impact on allied industry including packaging and plasting.

    The expected arrival of high end brands will give local industry an opportunity to become part of the global value chain.

    In addition, setting up of R&D centres and an ecosystem for software application is also visualised under the policy.

    The ECC discussed various recommendations proposed as part of the policy and approved the following:

    a. Removal of Regulatory Duty for CKD/SKD manufacturing by PTA approved manufactures under input/output Co-Efficient Organization (IOCO) approved import authorization.

    b. Removal of Fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category.

    c. Increase in Fixed Income Tax on USD 351-500 USD category by Rs 2000 and>USD 500 by Rs.6300 on CKD/SKD manufacturing only.

    d. Removal of Fixed Sales Tax on CKD/SKD manufacturing of mobile devices.

    e. PTA shall allow activation of handsets manufacturing in the country under import authorization of inputs by IOCO in CKS/SKD kit (8517.1211) and not under HS Code 8517.7000 i.e. parts. This will eliminate misdeclaration in parts category at the import stage. Activation of CBUs imported through notified routes after payment of all levied duties and taxes as fixed by government from time to time shall continue till further amendment.

    f. In up to USD 30 category, words “except smart phones” to be inserted for CBU imports under 8517.1219 to avoid misdeclaration.

    g. R&D allowance of 3 percent to be given to local manufactures for exports of mobile phones.

    h. Locally assembled / manufactured phones to be exempted from 4 percent of withholding tax on domestic sales.

    i. Government to commit maintaining tariff differential between CBU imports and CKS/SKD manufacturing till the expiry of the policy.

    j. Local industry to ensure localization of parts and components as per roadmap included in draft policy.

    k. EDB to act as Secretariat of Mobile Phone Manufacturing Policy and ensure development of allied parts, components and devices.

    Meanwhile, the ECC also considered a proposal brought forward by the Ministry of National Food Security and Research for an intervention price for cotton 2020-21 crop by rationalising earlier proposals after fresh consultation with the stakeholders.

    The members of the ECC had an in-depth discussion on the matter and maintained that an effective and sustained support to the cotton growers was vital and necessary due to the importance of cotton for the local as well as export industry.

    However, such a support should be extended in the form of direct targeted subsidy to the formers.

    ECC further directed the Ministry of National Food Security and Research to bring up to ECC proposals, for promoting research and development and to improve seed quality and yield per acre.

    The ECC decided that since the matter was not federal in nature, a mechanism should also be adopted by the Ministry of National Food Security and Research to engage with the provincial governments, particularly Punjab, at the higher government level for introducing some intervention with regard to ensuring better price to the cotton growers.

  • FBR proposed to reduce import duty on smartphones

    FBR proposed to reduce import duty on smartphones

    KARACHI: Federal Board of Revenue (FBR) has been urged to reduce customs duty on import of smartphones for the growth of economy.

    In its proposals for budget 2020/2021 submitted to FBR, the Overseas Investors Chamber of Commerce and Industry (OICCI) said that after the implementation of DIRBS and accompanying tax increase, the smartphone penetration in the country has dropped by 6 percent in the current fiscal year.

    “This is primarily due to the reason that for smartphone, we primarily rely on imports,” the OICCI said.

    Smartphones are not only used for communications but are predominantly used as an enabling tool for internet in almost all segments of the economy including finance, education, health, agriculture, social development etc.

    In the digital ecosystem, availability and affordability of these phones plays a major role in the growth of economy.

    All imported mobile phones including smartphones are now heavily taxed, rendering them unaffordable for vast segment of the population.

    This lack of affordability has become major impediment in proliferation of broadband in the country.

    The OICCI recommended:

    i. Retaining the current tax structure on low-end 2G handsets/feature phones (i.e. Rs. 500 as tax per device)

    ii. Reducing taxes on 3G/4G handsets (smartphones) below Rs. 10,000 and cap it to a max of Rs. 1,000/- per device

    iii. Reducing taxes on smartphones in the higher price brackets and cap it to a max of Rs. 5,000/- per device.

  • FBR urged to abolish withholding tax on telecom services

    FBR urged to abolish withholding tax on telecom services

    KARACHI: Federal Board of Revenue (FBR) has been recommended to abolish withholding tax on telecom services considering the rate is too high and a large segment of people living below poverty line.

    Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2020/2021 said that currently, telecommunication services in Pakistan are subject to withholding tax at 12.5 percent, which is much higher as compared to other sectors.

    Since approximately 30 percent of the population lives below the poverty line and the percentage of return filers is also nominal, imposition of withholding tax on the entire subscriber base is neither fair nor based on sound principle of proportionate taxation.

    The OICCI recommended the FBR to abolish withholding tax to promote the accessibility of internet/data services to the low-income groups.

    The OICCI also highlighted the issue of sales tax on services applicable in provinces.

    In Punjab, KPK, Baluchistan and Sindh, GST on telecom sector is charged from all consumers at 19.5 percent. In the federal capital, this rate is 17 percent.

    It is pertinent to mention that the provinces are levying a much lower rate of GST on other services – i.e. 13 percent – 16 percent.).

    The OICCI recommended:

    i. Reduce and harmonize GST across the country – i.e. a single rate for all services across all jurisdictions.

    ii. Since GST is a consumption tax on usage, the decrease in GST/FED rate will result in increase in usage of telecom services and consequently drive tax collection upwards.

    iii. A recent GSMA study1 concluded that harmonization of GST on mobile services to 17 percent would yield have an estimated PKR 62 billion positive impact on the GDP and exchequer. Additionally, we can expect 4.5 million more subscribers primarily on mobile broadband, which will be further stimulate GDP growth.

  • Telenor awarded Rs588 million contract for providing hi-speed broadband

    Telenor awarded Rs588 million contract for providing hi-speed broadband

    ISLAMABAD: The Universal Service Fund (USF) has awarded contract worth Rs588 million to Telenor Pakistan for providing hi-speed broadband in Sanghar Lot (Sindh).

    Federal Minister IT & Telecom, Syed Amin ul Haque inaugurated the Next Generation Broadband for Sustainable Development project in Sanghar (Districts of Sanghar and Umerkot) at a ceremony held at Ministry of IT & Telecom on Thursday.

    The contract was signed by Haaris Mahmood Chaudhry, CEO USF and Irfan Wahab Khan, CEO Telenor Pakistan. Secretary IT, Shoaib Ahmad Siddiqui was also present at the ceremony.

    Chief Guest of the ceremony, Syed Amin ul Haque stated that under the vision of Digital Pakistan, the Ministry of IT & Telecom is taking concrete steps to spread the benefits of digitalization to the masses.

    He said that during the spread of Coronavirus, Ministry of IT & Telecom will keep on making efforts to ensure that broadband connectivity helps us overcome this crisis.

    He added that the key stakeholders in IT & Telecom sector should work together vigorously to come up with innovative ways for fighting against Covid 19 through technology.

    He congratulated the teams of USF and Telenor Pakistan and also hoped that they will continue to achieve these milestones in future as well.

    While sharing his views at the ceremony, Shoaib Ahmad Siddiqui said that the main objective of USF is to facilitate the masses through broadband technology in the country.

    He added that during the coronavirus pandemic, Ministry of IT & Telecom is making sure that broadband connectivity plays an integral part in creating ease for people.

    He further said that USF projects are already making a huge difference in lives of people and with the new challenging scenario during the spread of coronavirus, these projects have become more crucial for socio-economic benefit.

    Also speaking at the ceremony, Haaris Mahmood Chaudhry, CEO USF informed that Federal Minister, Syed Amin ul Haque, Secretary IT, Shoaib Ahmad Siddiqui and USF Board of Directors have been giving constant guidance and support to USF for making rapid progress.

    He also added that all these projects are playing an integral role in enabling people of Pakistan to carry on their activities through broadband technology during the Covid 19 pandemic.

    Through the project in Sanghar lot, broadband coverage will be provided in 500 mauzas in Sanghar, covering an approximate unserved area of 12,000 sq. km and benefitting a population of 1.47 million people.

    Sharing his views on the development, Irfan Wahab Khan, CEO Telenor Pakistan said, “We are more committed than ever before to strengthen the pillar of connectivity as part of our purpose of connecting people to what matters most to them.

    “At Telenor Pakistan we are driven to empower the country through enhanced connectivity, creating opportunities and uplifting the lives of millions and stand firm in our commitment to break socio-economic barriers through the use of mobile technology.”

    Senior officials of the Ministry of IT, USF and Telenor Pakistan were also present at the ceremony.

  • CEO Jazz says abolishing withholding tax to benefit consumers

    CEO Jazz says abolishing withholding tax to benefit consumers

    Chief Executive Officer (CEO) of Jazz, Aamir Ibrahim, has emphasized that abolishing the withholding tax on mobile phone services would directly benefit consumers by making telecom services more affordable.

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  • Telenor, Ufone awarded next generation broadband SDP contracts

    Telenor, Ufone awarded next generation broadband SDP contracts

    ISLAMABAD: Mobile phone operators Telenor and PMTL (Ufone) have been awarded contracts for Next Generation Broadband for Sustainable Development Projects (SDP) worth Rs729 million in total.

    The 70th Board of Directors meeting of Universal Service Fund (USF) granted the approval on Friday. The meeting was chaired by Federal Secretary Ministry of IT and Telecommunication Shoaib Ahmad Siddiqui. Chairman Pakistan Telecom Authority (PTA) Maj. Gen (R) Amir Azeem Bajwa was also present in the meeting.

    Telenor is being awarded the contract of Muzaffargarh Lot and Small Lot I-1 (district: Islamabad) while PTML (Ufone) is being awarded the contract of Small Lot P-4 (Bhakkar, Khushab, Jhang and Mianwali).

    During the meeting, Secretary IT was apprised about the advances in USF projects. The Hi-speed Broadband services in Mazaffargarh lot will benefit an unserved population of around 2 million thereby covering 666 unserved muazas and an approximate unserved area of 14,195 sq. km.

    Muzaffargarh Lot encompasses Muzaffargarh and Ranjanpur districts.

    Similarly, an unserved population of 9,083 will gain advantage from Hi-speed Broadband services in Small Lot I-1 that covers Islamabad district with 12 unserved mauzas.

    Likewise, the Hi-speed Broadband services in Small Lot P-4 will benefit an unserved population of 86,968 thereby covering 11 unserved muazas and an approximate unserved area of 277 sq. km. Small Lot P-4 encompasses Bhakkar, Khushab, Jhang and Mianwali districts.

    The Secretary IT, Shoaib Ahmad Siddiqui emphasized on the growing need for connectivity amid the spread of coronavirus to support the people of Pakistan. He said that the use of ICT in rural areas during the pandemic will help the remote public to access government facilities that are available.

    He also laid stress on the significant role of ICT in far-flung areas in each step of fighting the COVID-19 as some people are unable to get the information or services required. In addition, he also asserted that these projects will help the communities to start or run a modern business, access telemedicine or take an online class in these difficult times.

    Furthermore, The Federal Secretary stated that the Ministry of IT and Telecom is making every effort to bridge the digital divide under the vision of Digital Pakistan as the economy heavily relies on the internet to minimize the disruption caused by the lockdown.

    Moreover, the members of the Board reiterated their full support to tackle the COVID-19 battle by ensuring to make progress in implementation of current and future projects of USF.

    The Board sincerely thanked the Secretary IT for providing direction and knowledge to achieve USF goals. Other board members including Shabahat Ali Shah, Executive Director, NITB; Irfan Wahab, CEO-Telenor Cluster Head for Emerging Asia and Nominee of Mobile Cellular Operators; Imran Akhtar Shah, VP for Government Sales, Super Net Pvt Ltd and Nominee of Data Licensees; Rashid Khan, CEO PTCL and Nominee of Fixed Line Operators; Kaukab Iqbal, Chairman, Consumer Association of Pakistan and Nominee of Consumer Group and management of USF Co. also attended the meeting.