PAKISTAN'S TELECOM SECTOR IN THE FAST LANE OF GROWTH.

Byline: SYED FAZL-E-HAIDER

Though having the highest mobile penetration rate in South Asia, Pakistan still has huge potential in digital economy growth. Telenor Group recently released a new connectivity report based on five Asian countries where Telenor Group operates, including Pakistan, Myanmar, Thailand, Malaysia and Bangladesh. The report titled "The Mobile Effect: How Connectivity Enables Growth", focuses on the impact of the telecom sector on the economies in the countries. The Telenor has contributed more than $12 billion to the economies of Bangladesh, Pakistan, Malaysia, Thailand and Myanmar, resulting to more than 1 percent GDP in each country, according to the report. The telecom sector is growing at a fast pace in Pakistan where mobile penetration based on unique mobile subscribers is increasing every year., says the report.

INVESTMENT PROSPECTS

Pakistan has great investment potential in telecom sector, which is playing a vital role in the economic growth of the country. Last month, in a meeting with Sergi Herrero, Co-Chief Executive Officer of VEON (parent company of Jazz Pakistan), who called on him in Islamabad, the Prime Minister Imran Khan said the telecom sector was one of the highest tax-paying sectors. Imran Khan appreciated the long association of the company with Pakistan having US$ 9 billion investment and serving 60 million subscribers with multitude of services.

Pakistan is rapidly evolving as one of the telecom sector's key investment prospects. The telecom sector has witnessed a significant year-to-year growth in the country. About 90 percent of Pakistanis live within areas that have cell phone coverage and more than half of the total population has access to a cell phone. The country's telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks; fiber systems are being constructed throughout the countryto aid in network growth.

In the last four years, the cellular mobile sector was the main driver of growth in telecom sector. In terms of overall investment in telecom sector, the momentum started in fiscal year 2013for up-gradation of telecom networks for 3G and 4G services, has continued. Telecom operators invested a significant amount of US$589 million during JulyMarch 2015-16. Pakistan as a market of about 200 million people continues to allure foreign firms to invest in the country's telecom market, which has the footmarks of strategic investors...