Telecom Operators Push for Policy Reforms in Pakistan

Telecom Operators Push for Policy Reforms in Pakistan

Islamabad, March 22, 2024 – Aamir Ibrahim, Chief Executive Officer of Jazz and Chairman of the Telecom Operators Association of Pakistan (TOAP), engaged in a significant meeting with Minister of State for IT and Telecommunication, Shaza Fatima Khawaja, on Friday, advocating for policy reforms to ensure the continued viability of the telecom industry in Pakistan.

During the meeting, Aamir Ibrahim presented a comprehensive overview of the telecom sector’s pivotal role in strengthening Pakistan’s digital infrastructure. Highlighting significant investments totaling $5.7 billion over the past five years, the sector has contributed PKR 1.27 trillion to the national exchequer. Moreover, it has played a crucial role in enhancing broadband penetration from 32% in 2019 to 54.9% in 2024. Aamir emphasized the mobile industry’s role in driving economic growth, fostering digital inclusion, and catalyzing the prosperity of various sectors.

However, Aamir also highlighted urgent challenges confronting Pakistan’s telecom sector. These challenges include the lowest global average revenue per user (ARPU), a high taxation environment, escalating spectrum prices tied to the U.S. dollar, and currency depreciation. These factors not only deter investment but also hinder consistent improvements in service quality, thus jeopardizing Pakistan’s potential for attracting international investments and integrating future technologies.

Aamir stressed the importance of addressing these challenges to ensure the industry’s viability in business terms and to effectively support the Digital Pakistan ambitions of the Government of Pakistan (GoP).

To tackle these obstacles, Aamir advocated for policy interventions that the industry has been urging for in recent years. These interventions include decoupling spectrum prices from the U.S. dollar, adopting a licensing payment model extended over a twenty-year period, temporarily suspending industry contributions to the Universal Service Fund and Ignite (R&D fund), and ensuring equitable access to industrial electricity tariffs for the telecom sector. Aamir also emphasized the urgency of Right of Way rationalization to prepare for future fiber and backhaul infrastructure needs and to facilitate fixed broadband proliferation nationwide.

Expressing gratitude to Minister Shaza Fatima Khawaja for her time and the productive discussion, Aamir offered full cooperation from Jazz and the entire telecom industry to undertake groundbreaking initiatives for digital transformation, including initiatives focused on financial and gender inclusion.

The meeting between Aamir Ibrahim and Minister Shaza Fatima Khawaja signals a collaborative effort between the government and the telecom industry to address critical challenges and foster a conducive environment for sustained growth and innovation in Pakistan’s digital landscape.