Pakistan telecom firm calls for regulatory relief to avoid slowing down of digital development, says report
Hatem Bamatraf, CEO, Pakistan Telecommunication Company Ltd have said, that the fluctuating exchange rate, increasing exchange rates, and fuel have caused uncertainty and have made it impossible for them to make a business plan
Representative Image. ANI
Islamabad: The chief executive officers of Pakistan’s largest telecom firms have warned that the country is heading towards a digital catastrophe due to the wrong policy of pegging telecom licence prices with the US dollar, Business Recorder reported.
The Pakistan Telecommunication Company Ltd (PTCL) said that Pakistan must take action and devise a plan for regulatory relief to avoid slowing down the digital development of Pakistan.
The CEOs of Pakistan’s largest telecom firms have said that the fluctuating exchange rate, increasing exchange rates, and fuel have caused uncertainty and have made it impossible for them to make a business plan.
“Due to the uncertainty caused by the fluctuating exchange rate, rising interest rates, fuel and electricity tariffs, made it impossible for them to make a business plan,” Business Recorder quoted the chief executive officers as saying.
According to Business Recorder, Hatem Bamatraf, CEO, Pakistan Telecommunication Company Ltd, in a tweet said, “With constant devaluation of PKR against USD, the cost of doing business has significantly increased in the country. The expectation from telcos to invest heavily in infrastructure modernization while earning in PKR, is becoming detrimental to the dream of Digital Pakistan. We must act now and devise a strategy for regulatory relief to avoid slowing down the digital development of the country.”
In another tweet, Hatem Bamatraf further said, “the situation has made business planning impossible due to the uncertainty caused by the fluctuating exchange rate, rising interest rates, fuel and electricity tariffs. On top of that telecom industry remains heavily and unfairly taxed,” according to Business Recorder.
Jazz CEO Aamir Ibrahim in a tweet said that the devaluation of Pakistani rupees has jeopardized the business case for telecom companies, as telecom licence fees and interest on installments are pegged to the US dollar, as per the Business Recorder news report.
He tweeted, “PKR devaluation has jeopardized the business case for telecom companies, as our license fees & interest on instalments are pegged to the US dollar. Last year 50% license renewal fee cost us PKR 44.5 billion, and this year, just 10% instalment alone costs over PKR 13 billion.”
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