Islamabad, Pakistan – 4th August 2023 – Pakistan’s telecommunications industry has seen a remarkable influx of investments, totaling over $7.1 billion, in the past five years, according to documents obtained by ProPakistani. This surge in investments has had a profound impact on the country’s economic landscape.
The telecom sector’s significant contributions are underscored by its financial support to the national exchequer, with a substantial Rs. 1,121 billion injected into the economy over the last half-decade.
During this transformative period, the telecom industry has exhibited substantial growth, with its total value surging from $17 billion to an impressive $26 billion. These developments have not gone unnoticed, as the sector’s share in the GDP expanded to 5.7 percent over the same five-year span.
Even in the face of formidable challenges such as floods, economic fluctuations, and import-related issues, the industry continued to thrive, registering a commendable 7.2 percent growth in the fiscal year 2022-23. This resilience in the telecom sector has had a profound impact on Pakistan’s digital landscape, driving a 10 percent increase in digital inclusion and contributing a notable 1.33 percent to the GDP.
The Ministry of Information Technology played a pivotal role in this growth trajectory, spearheading 83 broadband projects in underserved regions with the support of the Universal Service Fund (USF) over the past five years. An impressive Rs. 81 billion was allocated to these broadband initiatives in underserved areas, making significant strides in improving digital connectivity.
The focus of these initiatives has encompassed previously underserved regions in Balochistan, FATA, interior Sindh, and interior Punjab. A substantial 33 percent of the allocated funds were dedicated to Balochistan alone. Upon completion, these projects are expected to serve an additional 30 million citizens in underserved and deprived areas.
In parallel, the telecom sector witnessed a surge in new entrants, with 141 companies investing in the industry. These investments spanned a wide range of areas, from optic fiber and telecom infrastructure to the Internet of Things, smart devices, and telecom value-added services. These developments have also translated into tangible economic benefits, generating approximately 60,000 new jobs.
Furthermore, Pakistan’s telecom sector has been at the forefront of technological advancements, successfully conducting 5G trials. The groundwork for the soft launch of 5G technology in Pakistan has been meticulously laid, including the completion of a readiness study for a 5G commercial launch in collaboration with the World Bank and industry stakeholders.
The Ministry’s “Smartphone for All Vision” has also yielded impressive results, with 22 million smartphones manufactured in Pakistan in FY23. Notably, the Pakistan Telecommunication Authority (PTA) issued 33 manufacturing licenses to prominent companies, including Samsung, Nokia, VIVO, OPPO, and Xiaomi, fostering a thriving local smartphone manufacturing ecosystem.
