Tag: Mobile network

  • PTA introduces 120-day tax-free mobile registration for overseas Pakistanis

    PTA introduces 120-day tax-free mobile registration for overseas Pakistanis

    Prime Minister (PM) Shahbaz Sharif inaugurated the Online Temporary Mobile Phone Registration System on Tuesday, aimed at facilitating overseas Pakistanis and foreign nationals during their visits to the country.

    Under this system, individuals will be able to register and utilise their personal mobile phones for a duration of up to 120 days from the date of their arrival, exempt from any duties and taxes. This facility is available to overseas Pakistanis, including students and employees, as well as foreign nationals visiting Pakistan for tourism or business purposes.

    During the inaugural ceremony in Islamabad, PM Shehbaz acknowledged the significant progress made by Pakistani youth in the field of information technology and emphasised the need to seize the abundant opportunities in this sector. He further stated that the current government has allocated ample funds in the budget to support various youth-oriented programmes.

     To attract foreign investment and revive the economy, a Special Investment Facilitation Council (SIFC) has been established, with the IT Ministry playing a pivotal role in achieving the set objectives.

    Additionally, the PM highlighted the importance of promoting IT parks in the country to boost IT exports. He mentioned the distribution of free laptops among deserving students based on merit and assured that a non-financial package will be announced soon to further enhance facilitation for overseas Pakistanis.

    In December 2018, the government introduced the ‘Mobile Phone Tax Policy,’ allowing overseas Pakistanis to bring one phone without paying customs duty, subject to registration upon arrival at the airport. Failure to register resulted in the phone being non-operational. Initially, the registered phone could be used with one SIM for 60 days, after which it required payment of due taxes to regularise its usage.

    In 2022, authorities upgraded and introduced new features in the Identification Registration and Blocking System, enabling overseas Pakistanis to use their imported mobile phones for a period of 120 days.

    The system facilitated data exchange among the Federal Investigation Agency (FIA), the Federal Board of Revenue (FBR), and the Pakistan Telecommunication Authority (PTA). It was also integrated with the FIA’s record of passengers’ entry and exit.

  • IT Minister warns of service disruption in many areas due to unavailability of technical parts

    IT Minister warns of service disruption in many areas due to unavailability of technical parts

    The restrictions imposed for the letters of credit (LCs) facility for the telecom sector, according to IT & Telecom Minister Syed Aminul Haque, are insufficient.

    “Without much-needed tec­hnical parts there are fears of service disruptions in many areas,” Mr Haque warned while presiding over the 44th Policy Com­mittee meeting of the Universal Service Fund (USF).

    He claimed that the restricted LC licenses were impeding the import of equipment for upgrading mobile networks and interfering with the general efficiency of the IT and telecom industries.

    “Telecom companies were facing difficulty in importing parts and equipment due to limited permission of LCs and it may also result in a delay in projects for the provision of 4G services in far-flung areas of the country,” the minister noted.

    The authorities reported to the meeting that telcos, IT firms, and their backend equipment suppliers had complained that it was impossible for them to import even the basic hardware required to run systems.

    The minister promised to speak with the Ministry of Finance again and let them know about the critical circumstance.

    Out of the budget of Rs32.13 billion set aside for the Universal Service Fund (USF) for 2022–2023, the meeting approved the release of a development fund of Rs5 billion for the second and third quarters, while Rs8.25 billion had already been released for the first quarter.

  • ‘We do not comment on rumours,’ Telenor Pakistan responds to reports suggesting that the company is being sold for $1 billion

    ‘We do not comment on rumours,’ Telenor Pakistan responds to reports suggesting that the company is being sold for $1 billion

    Multiple online news outlets reported that Telenor, a telecom operator, intended to sell its business in Pakistan for $1 billion, which ignited a debate on social media.

    There is a lot of uncertainty about the authenticity of this news since a few Telenor employees have also denied the reports and asserted that they are fake.

    The company has yet to make an official announcement in this regard, with the exception of responding to a Twitter user’s question who asked whether these reports are legit. “We do not comment on speculations and rumours,” Telenor replied. 

    According to Bloomberg, Telenor is moving forward with plans to sell its business in Pakistan, which might be worth $1 billion, according to people familiar with the situation.

    The Norwegian telecommunications operator is working with Citigroup Inc. and will welcome first-round bids for the firm later this month, according to insiders.

    Telenor announced in July that it would conduct a strategic assessment of its Pakistan unit after incurring a 2.5 billion-krone ($244 million) loss on operations in the growing market.

    The people predict that strategic customers with operations in Pakistan from the Middle East and Asia will express interest. They stated that there is no assurance that the ongoing discussions would result in a transaction. Telenor and Citigroup representatives declined to comment.

    Telenor’s stock increased as much as 2.4 per cent on Wednesday. The company’s market worth increased to $13 billion as the stock rose 1.8 per cent in Oslo.

    In October, Telenor said that the third quarter’s underlying profitability in Pakistan decreased by 22 per cent, in part as a result of the nation’s growing energy costs. This had a negative effect, but it was partially offset by a gain from Pakistan’s repeal of a SIM tax.

    One of Telenor’s four Asian countries, Pakistan, saw a gain of 600 million crowns ($57.79 million), which was related to a court ruling on the applicability of tax on SIM cards for mobile phones from 2014 to 2020.

    In recent years, Telenor, which serves 175 million users across eight countries in the Nordic region and Asia, has worked to reduce expenses and increase cash flow in order to fund greater dividends and 5G expenditures. The company’s greatest efforts to date have involved attempts to consolidate markets in South-East Asia, including a $8.6 billion acquisition in Thailand and a $15 billion merger to create a telecoms leader in Malaysia.

    Telenor Asia, which also manages the company’s operations in Pakistan and Bangladesh, is in charge of both units.

    During the first three quarters of 2022, Telenor Pakistan’s income decreased by about 8 per cent in Norwegian Kroner terms but increased by 4 per cent in Pakistani Rupee terms, staying at NOK 3.390 billion (Rs82.57 billion) as opposed to NOK 4.270 billion (Rs79.36 billion) during the same period of 2021.

    In comparison to NKO 1.425 billion (Rs26.68 billion) during the same period last year, or in 2021, Telenor Pakistan reported total revenues of NOK 1.320 billion (Rs29.53 billion) during the third quarter of 2022. This represents a 7.5 per cent decline in NOK terms and a 10 per cent increase in rupee.

    Intense floods throughout the quarter had a negative impact on the Group’s business in Pakistan. Consumers’ purchasing power was impacted by the circumstance, which also resulted in network failures and raised prices.

  • After electricity, telecom companies warn of phone call loadshedding

    After electricity, telecom companies warn of phone call loadshedding

    Following a massive tax hike, telecom companies in Pakistan have warned the public of initiating ‘loadshedding’ of phone calls, similar to power cuts, across the country.

    Telecommunication officials informed senators during a meeting of the Senate Standing Committee on Finance that, like electricity, load-shedding of phone calls would be observed in the coming days, according to ARY News.

    During the meeting, telecom company representatives stated that the federal government has enhanced the advance tax on imported fibre optic cable by 15 per cent while boosting duty by 20 per cent.

    The senators were informed that the companies are experiencing severe financial difficulties as a result of the enhanced financial strain of importing fiber-optic.

    Telecom company representatives claimed that fibre optic cable is only used in 10 per cent of towers across the country, and that unless the government lowers fibre optic cable taxes, Pakistan will fall behind in the global connectivity race.

    After hearing the telecom companies’ arguments, the Senate committee recommended that the federal government reduce relevant taxes on fibre optic imports.