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Making Technology Affordable: The Call for Lower Mobile Phone Taxes

In a recent session of the Senate Standing Committee on IT and Telecom, discussions highlighted the pressing need to make technology more accessible. The committee urged the Pakistan Telecommunication Authority (PTA) to reduce mobile phone taxes to affordable levels for the general public. However, it was clarified that the PTA does not hold jurisdiction over tax adjustments, which lies with the Federal Board of Revenue (FBR). This misalignment calls for collaboration between relevant authorities to address affordability concerns.

Advancing Internet Infrastructure and 5G Readiness

Secretary IT & Telecom provided promising updates regarding the country’s digital infrastructure. The introduction of a fiberization policy and plans for the rollout of 5G are poised to enhance internet services nationwide. These developments are critical for Pakistan’s leap towards a more connected future.

The Secretary also announced the addition of four new submarine cables to strengthen internet connectivity, with three expected to be operational within a year. This expansion aims to ensure faster and more reliable internet for users across the country.

IT Export Growth: A Bright Spot

Pakistan’s IT export performance continues to shine. According to an IT Ministry official, exports grew by 37 percent in 2024, reaching $3.3 billion in the first 11 months compared to $2.4 billion during the same period in 2023. Despite a slight dip due to COVID-19, recovery has been robust, and the sector has maintained a compound growth rate of 23 percent over the past five years. This trajectory underscores the IT sector’s potential as a key contributor to economic growth.

Addressing Regional Connectivity Disparities

While advancements are being made, regional connectivity disparities remain a significant challenge. Senators expressed concerns over persistent issues in areas such as Balochistan and Khyber Pakhtunkhwa, where daily disruptions and bureaucratic hurdles in securing permits for mobile towers hinder progress. In Sindh, specifically Larkana, internet speeds remain sluggish despite substantial investments.

Chairman PTA Major General (R) Hafeez Ur Rehman acknowledged the fiber connectivity challenges in Balochistan, emphasizing the need for tailored interventions. To address these gaps, the Universal Service Fund (USF) has invested ₨. 3 billion in Ex-FATA projects to enhance connectivity in merged districts.

The Impact of Internet Shutdowns

The committee also touched on the consequences of internet shutdowns in affected districts. Such disruptions not only impede daily life but also stall progress in education, business, and communication, further widening the digital divide.

The Path Forward: Building a Digitally Inclusive Pakistan

To ensure a digitally inclusive Pakistan, the following priorities must be addressed:

  • Collaborative Policymaking: Joint efforts between PTA and FBR to make mobile technology more affordable.
  • Infrastructure Development: Accelerated implementation of fiberization and submarine cable projects.
  • Regional Investments: Targeted funding to improve connectivity in underserved regions.
  • Sustained IT Growth: Continued support for the IT sector to maintain export growth and resilience.

As Pakistan moves closer to 5G implementation, bridging the digital divide must remain a top priority. A united approach among public and private stakeholders will be key to transforming the nation’s connectivity landscape and fostering equitable access to technology for all citizens.

ALSO READ: Understanding Punjab’s 5% Penalty on Non-Banking Property Transactions

Farzeen Mubarak
Farzeen Mubarakhttps://bepsych.com/
Hello, I'm Farzeen, a writer who loves to explore different topics. I've written articles on a wide range of subjects, from technology to health, lifestyle, and more. My goal is to create content that's easy to understand and enjoyable to read. When I'm not writing, I'm out discovering new places and trying delicious food. I'm always eager to learn and share fresh insights with my readers.
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