STAFF REPORT IBD: Despite challenging economic environment in the country, the telecom sector of Pakistan performed relatively better and most telecom indicators showed positive growth in the financial year of 2012.
According to statistics, the total teledensity crossed 71.7 per cent at the end of June 2012, telecom revenues reached Rs 411 billion showing a growth of 11 per cent over FY2011, broadband subscribers crossed the mark of 2.1 million and cellular subscribers reached 120 million at the end of FY2012.
Nevertheless, investment remained low in the sector and only US$ 240 million were invested during the year compared to $493 million in FY2011 as basic telecom infrastructure in the country has been laid down by the telecom operators.
For fiscal consolidation, the government continued its efforts to increase the tax base and simplification of tax structure in the country. Resultantly, the Federal Board of Revenue collected Rs 1608 billion during July-May 2012. In order to revive the growth momentum and investment in the economy, comprehensive and credible reforms are required primarily in the energy and fiscal sectors.