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CMPaK awards Pakistani network heroes​


By Mariam Raheem | Gwadar Pro Oct 21, 2022



ISLAMABAD, Oct. 21 (Gwadar Pro) - CMPaK held a ceremony of network excellence demonstration and donation to the Sindh provincial government here on Thursday. Individuals and teams who have made key contributions towards to company’s network excellence were presented with awards on the occasion.
CMPaK awards Pakistani network heroes

Awarded employees who have made contributions towards to CMPak’s network excellence
Minister of IT and Telecommunication Syed Amin Ul Haque applauded the network’s superlative quality. He said, “the floods have affected the lives of millions of Pakistanis. CMPak stepped forward at a difficult time when the country needed their help most, restoring the Internet access in the affected areas in a short period of time. It has shown extraordinary resilience and will, as well as outstanding leadership and technical capabilities, which deserve the respect of the Pakistani people.”
CMPaK awards Pakistani network heroes

New Network improvement Campaign Launch
Nong Rong, Chinese Ambassador to Pakistan, highlighted in his speech that after the devastating floods in Pakistan, CMPak quickly invested a lot of manpower and material resources to repair the service base station, and ensured the communication in the disaster area to be restored in a short time, which shows the strong friendship between China and Pakistan. It also actively donated money and materials, fully reflecting the social responsibility of Chinese-funded enterprises.
“I am extremely proud of our technical employees who remained on their toes, day and night, to restore network in areas which were completely submerged in flood water and where the infrastructure was damaged,” Zong CEO Wang Hua said at the event. “Our teams recovered 99% of the CMPak network in three weeks, which is a commendable effort.”
More than 1,000 of CMPak’s base stations have been out of service due to severe flooding in Pakistan. In the face of the disaster, the company’s employees braved the difficulties and grabbed one communication “lifeline” after another. Within three weeks, the company achieved the basic restoration of the service base stations, effectively ensuring a smooth network for people and government departments in the disaster area.
Furthermore, CMPak has launched a free call plan in the flood-hit areas of Pakistan with more than 3.1 million subscribers. It has also assisted governments in sending 117 million text messages against flooding. Medical camps have been set up in four hard-hit areas, where the company is providing free food and medicine and conducting free medical treatment activities. The company also organized the staff to carry out “One Day Donation” campaign to raise Rs 4 million. Together with the company’s donation, Rs 10 million were donated to the Sindh government for flood relief and post-disaster reconstruction.

 
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The first computer exhibition was held at the famous Hotel Holiday inn Karachi in 1984.


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Telecom CEOs Blame Finance Division, FBR, SBP for Pushing Country Towards Dark Age​

By Ahsan Gardezi
Nov 18, 2022

Chief Executive Officers of the telecom companies have informed Federal Minister IT Syed Aminul Haq about their concerns regarding government policies in a meeting yesterday.

Well-informed sources told ProPakistani that the telecom industry says that the Finance Division, FBR and State Bank policies are pushing the country towards the dark age instead of the digital age.

Telecom industry sources say that the CEOs of telcos had a detailed discussion with the Federal Minister on the problems faced by the telecom sector yesterday.

The telecom industry says that due to government policies, not only the telecom industry is suffering and new investment is not coming into this sector, but these policies are also affecting the IT industry as the telecom sector is the backbone of the IT sector and the majority of the IT businesses are based on the telecom and data services.

According to industry sources, the CEOs demanded the federal minister talk to the federal government to withdraw the 50% increase in withholding tax.

According to sources, the CEOs told the federal minister that with an overall 34.5 percent tax on telecom users including 15 percent withholding tax and 19.5 percent general sales tax, Pakistan is among the highest-taxed telecom markets in the world, while it ranks second highest in telecom taxation in South Asia.

According to sources, CEOs of telcos also raised the issue of industrial tariffs before the federal minister.

The CEOs said that telecom has been given industrial status but industrial tariff has not yet been implemented, due to which operational cost is increasing. Telecom companies charge the user in rupees while they have to pay the renewal fees in dollars.

According to Industry sources, the CEOs of the companies also raised the issue of the non-opening of LCs of the telecom sector before the federal minister. The CEOs told the Federal Minister that due to the non-opening of LCs and non-import of telecom industry equipment; the operations of the industry are being affected.
 
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Pakistan’s ‘digital emergency’

November 23, 2022

EDITORIAL: IT Minister Aminul Haque would have noticed, when he met telecom industry executives divided over the launch of 5G network services, that their most consistent complaint was inconsistency in government policies for the sector.

Now, while China Mobile-owned Zong is willing to “fully cooperate” with the ministry for the 5G rollout next year, Jazz, Telenor and Ufone are wondering how they will do it when the industry’s “very survival is at stake”.

The whole sector, which is supposed to be the backbone of the modern digital economy, is suffering because of a severe cost-push financial squeeze and an administration unable to figure out its policy direction.


That’s why it’s demanding urgent policy interventions, including denominating spectrum payments in rupees instead of dollars and extending its payment terms to 10 years from five, suspension of annual payments to Universal Service Fund (USF) and Ignite for two years, and reduction of withholding tax on essential telecom services to eight percent from 15pc.

But since the minister was already aware of these demands, and all he said in his meetings to address them was that the government was doing all it could, he didn’t exactly inspire the kind of confidence that was needed to get the ball rolling on the 5G front.

There’s much talk at the top level about growing the IT industry into a leading export earner. Yet even though the minister admitted that “improvement in connectivity was linked to the telecom sector, and I am convinced that the economic stability of the country was linked with a strong and vibrant telecom industry,” there’s not much happening on ground in quantifiable terms to back this realisation. And the whole IT sector is waiting for the telecom sector to be able to meet Pakistan’s digital inclusion objectives.

Even if/when the government is able to put enough on the table for the telecom sector to play along, there will be a lot of issues to address before the whole thing can really take off. Recent floods badly damaged and degraded telecom infrastructure up and down the country.

Rising interest rates are therefore not only worsening the financial crunch and cutting crucial investment, they’re also making reconstruction a lot more expensive. And then there’s increasing electricity prices and the falling rupee to add to input costs. That’s a lot to do, especially when you haven’t made up your mind how you’ll do it and the clock is ticking.

IT is one of the most important ministries in most countries in this day and age. We need only see across the border in India to understand how prudent planning and provisioning can indeed turn it into an export powerhouse. In addition to powering the economy, it also forces an improvement in the quality of education to feed a rapidly growing industry. Here, priorities are different and the IT ministry was doled out to a disgruntled ally to prevent undue embarrassment so soon after the no-confidence motion brought the present coalition government to power.

Industry executives also enlightened the IT minister that frequent changes in government policy were making it difficult for them to convince their investors to continue investing here. There are, in fact, rumours that one of the three companies that expressed their reservations to the minister might be considering wrapping up from Pakistan altogether.

Given these circumstances, it would have been much better to have a more IT-oriented man heading the ministry. Yet effective policy can still be framed by taking all relevant stakeholders on board at the right time and devoting enough resources to overcome immediate hurdles.

Managing this “digital emergency”, as one industry executive put it in the meeting with the minister, is the least the government is expected to do. At stake is not just the fate of a few countries or the 5G network or even the whole sector, but Pakistan’s chance of being able to function as a proper digital economy in the 21st century.
 
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In a major development, tech giant Google will begin operations in Pakistan by next month.
Google will also provide 15,000 #scholarships to #Pakistani citizens after starting operations in Pakistan.
 
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The IT sector can help Pakistan's economy, but several factors need to go in its favour

Bilal Hussain
November 23, 2022

As a veteran reporter, I have been covering the IT sector along with other areas for a while. The one notable thing I have observed is that people are bullish on the sector's growth prospects.

The banking sector appears to be on the same path as well, but this seems to come on the back of fintech's potential, which is powered mainly by the IT sector — blurring the lines between the two.

The IT sector has seen significant growth in recent years. IT-related exports went up from $1.4 billion in fiscal year 2019-20 to a record $2.1 billion the next year. Growth rate slowed in FY 2021-22 as exports clocked in at $2.7 billion, according to the Pakistan Software Houses Association for IT. The government had set a target of $3 billion for FY22.

However, many in the industry feel that the government has not played a huge role in this growth, and that it has come on back of Pakistan's robust demographic of young individuals who are tech savvy.

There is, however, a dire need for capital expenditure in this sector. Hence, there’s also a need for the government to spend on infrastructure in order to pave way for the growth momentum to continue. Connectivity is provided by the telecom sector that covers clusters with little role of the government.

Instead, these companies should also be pushed by the government to reach remote areas in order to be inclusive of people living there. This may boost tech growth.

Although internet connectivity, speed and performance in Pakistan are not at par with international standards, the country has still managed to see its IT sector prosper.

At the same time, investment in Pakistan's startups has also gone up significantly, with total valuation of these early-stage companies reaching $3.5 billion, according to the IT minister.

However, despite the investments, a major chunk of it remains parked in other countries that have positioned themselves as startup hubs over the years.

While policy-checks on financial flows may be a hurdle, it is Pakistan's volatile currency that does a lot more damage.

For instance, the rupee has depreciated nearly 20% since March alone.

If the investment had entered Pakistan’s banking system, it would have lost that much of its value by now, within a year.

This, of course, is too much for a foreign investor.

Unless the fundamentals of the economy improve, such as stability in exchange rate, all sectors will continue to struggle.

Moreover, IT service providers also depend on the growth outlook of other areas such as providing software to the textile, FMCGs etc.

When other sectors of an economy struggle, and traditional areas struggle, pressure is passed onto IT as well.

In a quick analysis of Pakistan’s IT sector, despite its growth potential and the government’s aggressive targets, it cannot help Pakistan alone.

There are fundamental problems in the economy, which experts such as Atif Mian and Miftah Ismail have pointed out repeatedly.

Investments and incentives have rarely gone into the right productive sectors that help lower a country's dependency on imports and increase exports.

For instance, the previous government tried to grow the economy through the construction sector, providing it with amnesty schemes, subsidies and cheap loan facilities.

However, all these incentives increased property prices, and demand for construction material that resulted in a higher import bill as well.

There have to be consistent policies with a long-term understanding of every sector – such as their dependency on imports. For instance, last year the government reduced tax and duties on cars but they had to revert within months as imports increased significantly.

While the auto industry is dependent on imports, the IT sector does not increase this bill.

And while the telecom sector may import equipment, these are largely one-time fixed costs.

The IT sector’s dynamics make it favourable for the country due to its demographics, but it needs proper nourishment and favourable, consistent policies.
 
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The IT sector can help Pakistan's economy, but several factors need to go in its favour

Bilal Hussain
November 23, 2022

As a veteran reporter, I have been covering the IT sector along with other areas for a while. The one notable thing I have observed is that people are bullish on the sector's growth prospects.

The banking sector appears to be on the same path as well, but this seems to come on the back of fintech's potential, which is powered mainly by the IT sector — blurring the lines between the two.

The IT sector has seen significant growth in recent years. IT-related exports went up from $1.4 billion in fiscal year 2019-20 to a record $2.1 billion the next year. Growth rate slowed in FY 2021-22 as exports clocked in at $2.7 billion, according to the Pakistan Software Houses Association for IT. The government had set a target of $3 billion for FY22.

However, many in the industry feel that the government has not played a huge role in this growth, and that it has come on back of Pakistan's robust demographic of young individuals who are tech savvy.

There is, however, a dire need for capital expenditure in this sector. Hence, there’s also a need for the government to spend on infrastructure in order to pave way for the growth momentum to continue. Connectivity is provided by the telecom sector that covers clusters with little role of the government.

Instead, these companies should also be pushed by the government to reach remote areas in order to be inclusive of people living there. This may boost tech growth.

Although internet connectivity, speed and performance in Pakistan are not at par with international standards, the country has still managed to see its IT sector prosper.

At the same time, investment in Pakistan's startups has also gone up significantly, with total valuation of these early-stage companies reaching $3.5 billion, according to the IT minister.

However, despite the investments, a major chunk of it remains parked in other countries that have positioned themselves as startup hubs over the years.

While policy-checks on financial flows may be a hurdle, it is Pakistan's volatile currency that does a lot more damage.

For instance, the rupee has depreciated nearly 20% since March alone.

If the investment had entered Pakistan’s banking system, it would have lost that much of its value by now, within a year.

This, of course, is too much for a foreign investor.

Unless the fundamentals of the economy improve, such as stability in exchange rate, all sectors will continue to struggle.

Moreover, IT service providers also depend on the growth outlook of other areas such as providing software to the textile, FMCGs etc.

When other sectors of an economy struggle, and traditional areas struggle, pressure is passed onto IT as well.

In a quick analysis of Pakistan’s IT sector, despite its growth potential and the government’s aggressive targets, it cannot help Pakistan alone.

There are fundamental problems in the economy, which experts such as Atif Mian and Miftah Ismail have pointed out repeatedly.

Investments and incentives have rarely gone into the right productive sectors that help lower a country's dependency on imports and increase exports.

For instance, the previous government tried to grow the economy through the construction sector, providing it with amnesty schemes, subsidies and cheap loan facilities.

However, all these incentives increased property prices, and demand for construction material that resulted in a higher import bill as well.

There have to be consistent policies with a long-term understanding of every sector – such as their dependency on imports. For instance, last year the government reduced tax and duties on cars but they had to revert within months as imports increased significantly.

While the auto industry is dependent on imports, the IT sector does not increase this bill.

And while the telecom sector may import equipment, these are largely one-time fixed costs.

The IT sector’s dynamics make it favourable for the country due to its demographics, but it needs proper nourishment and favourable, consistent policies.

Biggest problem Pakistan has in true IT services, is it poor education system - the "pretence" in Pakistan that a 2year "BSc" degree is competitive with 3-4 years of IT education for BSc degrees in other countries - is laughable and shows the farcial state of affairs in Pakistan ...


Education .. Education .. Education is the cure for most of Pakistan's ills....
 
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Engro Corp eyes acquisition of mobile tower business

Kazim Alam
December 6, 2022


KARACHI: Engro Corporation Ltd said on Monday it’s looking for an investment opportunity in the mobile infrastructure business, which typically involves purpose-built towers with communication equipment allowing area residents to use wireless devices.

Even though the securities filing didn’t mention the potential size of investment — or name the target of acquisition — market reports suggest the conglomerate is trying to buy the tower assets of global wireless operator Veon Ltd, which runs the Jazz mobile network in Pakistan.

A spokesman for Engro Corporation offered no comment when asked to confirm if the securities notice was indeed in relation to the potential acquisition of Veon’s tower assets.

A recent report by Bloomberg News quoted Veon CEO Kaan Terzioglu as saying that the global company was about to conclude the sale of its 10,000-12,000 mobile towers in Pakistan. The transaction size is expected to be between $600 million and $960m based on the fact that a single tower is valued at $60,000-$80,000.

Earlier in September, another listed company TPL Properties Ltd showed its interest in acquiring a telecom tower infrastructure business in Pakistan. The company didn’t state the likely transaction size or reveal the identity of the business it was trying to acquire.

However, an industry source told Dawn at the time that TPL Properties was looking at an investment of “Rs100 billion-plus”.

As for the target of acquisition, the source said at the time the company in question controlled “more than 25 per cent” of all mobile towers located across the country.

The total number of mobile towers in Pakistan is north of 40,000. Each mobile network operator (MNO) operates on average 10,000-11,000 towers. The four MNOs collectively operate more than 80pc of all mobile towers.

The rest of the infrastructure is operated by four independent tower companies. Engro Corporation already operates one such firm by the name of Enfrashare, with 2,246 towers across Pakistan.

If executed, the deal will reduce the share of Veon/Jazz in the mobile tower business to zero and let it focus on revenue streams that are central to its business, analysts said.

Published in Dawn, December 6th, 2022
 
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Google opens liaison office in Pakistan, registers with SECP

Bilal Hussain
December 9, 2022

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Google has opened its liaison office in the country, and registered with the Securities Exchange Commission of Pakistan (SECP), it was learnt by Business Recorder on Friday.

An official of the company confirmed that the liaison office had been opened, while a SECP spokesperson said the company "has been registered as a foreign company" in Pakistan.

A liaison office means an office of a foreign company established for promotion of products, provision of technical advice and assistance, exploring the possibility of joint collaboration and export promotion.

“We have recently opened a liaison office in Pakistan to explore business opportunities, better market our products and services locally and support the country’s fast growing tech ecosystem," Google spokesperson said in response to a query by Business Recorder.

Recently, Google Country Director for Pakistan, Sri Lanka, and Bangladesh Farhan Siddique Qureshi said Pakistan has proven itself as a high-growth market.

Qureshi was talking to journalists at the sidelines of an event where YouTube, an online video sharing and social media platform, hosted its first 'Brandcast' in Pakistan. YouTube is owned by Google.

In November, Pakistan Muslim League-Nawaz (PML-N) Senator Afnan Ullah had also said that a Google team would visit Islamabad next month to commence operations in Pakistan.

“A delegation of Google will visit Pakistan on December 11 to start operations,” he had said then, adding that the platform will provide 15,000 scholarships to Pakistani citizens after starting operations in the country.
 
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While Twitter and Facebook have announced they won't be able to open offices in Pakistan anytime in the near future, Google, the largest search engine and video-sharing platform in the world, plans to establish a registered office there.

According to a formal announcement made on Friday by IT and Telecom Minister Syed Aminul Haque, the global powerhouse has already registered itself as a corporation in Pakistan.

During a business trip to Pakistan early the next week, "Google is anticipated to announce the opening of a fully working office here," claims Mr. Haque.

However, Google has already established leadership in this field, and the business is already registered with the Karachi registration of the Pakistani Securities and Exchange Commission (SECP).
 
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President Alvi terms IT sector game-changer for country’s economy​

Umer Gujjar

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LAHORE (APP): President Dr Arif Alvi has said that the Information and Communications Technology sector is a game-changer for the national economy.

Addressing the launching ceremony of Web 3.0 here at the Punjab Information Technology Board here on Friday, he said that there was a need to accelerate speed manifold for making solid policies.

He said such policies should not be rolled back by any change in government. He stressed finding out-of-the-box solutions to the existing and emerging issues and challenges.
 
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Pakistan’s IT and IT-enabled Services (ITeS) export remittances comprising computer services and call center services increased by 3 percent during the first five months of the current fiscal year (FY23) and stood at $1.087 billion compared to $1.051 billion during the same period of last fiscal year.

According to the official data of the State Bank of Pakistan (SBP), on a year-on-year (YoY) basis the sector’s export remittances increased by 5 percent and stood at $233 million in November compared to $221 million in November 2021. On a month-on-month (MoM) basis the export remittances also increased by 5 percent when compared to $221 million in October 2022.
 
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The parent company of Telecom Tower Infrastructure Company (TTIC), which owns and manages around 10,500 operating towers in Pakistan, has conditionally accepted the offer of a consortium comprising Pakistan’s TPL REIT Management Company Limited (TPL RMC) in partnership with TASC Towers (TASC), a UAE-based mobile telecom tower operator, for the acquisition of TTIC.

TPL Properties, the parent company of TPL RMC, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“We are pleased to announce that the parent of one of the largest telecom tower operators in Pakistan, has conditionally accepted the offer, subject to signing of definitive agreements, all necessary corporate approvals and receipt of relevant regulatory approvals, made by our subsidiary TPL REIT Management Company Limited in partnership with TASC Towers for acquisition of their subsidiary (Telecom Tower Infrastructure Company) which owns and manages more than 10,500 telecom towers in Pakistan,” read the notice.
 

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