The Pakistan Economy Watch (PEW) aforementioned once vibrant telecom business of Pakistan is dying a slow death because of excessive burden of taxes.
Telecoms sector has undergone a sharp downswing over the past year, with revenue from mobile falling by 1.8 % throughout 2014-15 and a dramatic drop by direct foreign investment, it said.
FDI plummeted by 72 % to $121 million for the financial year ending June 30th, whereas the telecoms business contributed 50 % less in taxes in 2014-15 compared to the previous year that were Rs. 126 billion, down from Rs. 243 billion, said Dr. Murtaza Mughal, President pew.
He aforesaid that biometric subscriber verification that resulted in overall connection numbers dropping by 18 %. At the top of the year, a total of 114.7 million subscribers remained down from a hundred and forty million in FY14.
Dr. Murtaza Mughal said that sales tax on numerous kinds of foreign mobile devices has been doubled this year by the govt. which can have a negative impact.
He said that cell phones and mobile web is very important tool to cut back impoverishment thus policymakers should contemplate providing relief to telecommunication business reeling underneath significant taxation.
A great number of Pakistan individuals are unbanked that might be reached and provided monetary services if the telecommunication and net taxes are reduced because the services of microfinance sector leaves a lot of to be desired.