1. Information and Telecommunications Journey in Pakistan: Future Directions
Presentation by Dr. Manzoor Ahmad,
Honorary President (PRIME) and Chairman, Pakistan LNG Ltd

2. Six Phases 1947–1965: Few telephone connections
1960’s-80’s: Second generation mainframe computers limited to a few public companies and institutions
: Import restrictions removed, taxes lowered; start up of internet services
: Deregulation of telecom services; opening up of the cellular mobile services; new Broadband Policy
: Decline in Foreign Direct Investment; Establishment of International Clearing House (ICH)
2014-Present: Introduction of 3G/4G; rise in teledensity and broadband penetration

3. Fourth Phase - Starting 2003/04
Deregulation of telecom services
Telecom becoming the fastest growing sector
Tele-density jumped from 6% to over 58% ( )

4. Fourth Phase: (Contd)
Cellular phones users increased from 2.4 million to 89.6 million ( )
Coverage of telecom services extended to over half the population

5. Fourth Phase: (Contd)
Telecom sector’s contribution to GDP increased from almost negligible to over 3% per year (2007)

6. Fifth Phase:
FDI declining, lowest at US$ 813 million in

7. Fifth Phase:
International incoming traffic began falling
Revenue loss est. $4 b

8. Sixth Phase: 2014-present
Introduction of 3G/4G
Cellular subscribers increase from 120 million to 142million ( )

9. Sixth Phase: 2014-present
Broadband subscribers increased to 49 million
3G/4G Teledensity rose from 7.1% to 21.6% in ( )

11. Internet Penetration Remains Low
Pakistan’s 22% penetration low against Asian average of 46.7%
Low compared to Bangladesh (44.5%) and India (34.4%)

12. High Taxes Serving as a Major Barrier
Mobile operators paying US$ 1.2 billion in taxes each year, about 30% of total revenues
Survey shows that 31.6% of a mobile’s cost is taxes – third highest level of taxation (18.1% average)
Far higher compared to Iran (6.20%), India (10.35%), Sri Lanka (12.26%), Malaysia (15.95%) and Bangladesh (20.21%)

13. The Way Forward More emphasis on ICT infrastructure development
Rationalization and reduction of taxes on ICT goods and services
Adoption of forward-looking regulatory and legal framework
Ensuring predictability and continuity in government’s policies
Improving computer literacy rates - introduction at all educational levels
Close the digital divide between urban and rural areas
E-government should be strengthened, with land records and tax administration fully computerized.
ICT should be introduced in all sectors including health, education and agriculture
Ensure affordable access to equipment and ICT services
Capitalize on the opportunities arising from CPEC and become a hub for ICT services
More collaboration between the provinces to ensure best practices are replicated
Facilitate bringing in digital payments such as PayPal