In a recent session chaired by Rana Mahmood-ul-Hasan, the Senate Standing Committee on Cabinet delved into crucial developments in Pakistan’s IT sector. Key discussions centered around the establishment of social media offices, rising mobile phone costs, and efforts towards digital transformation.
Discussion on Social Media Offices and IT Sector Developments
Security Concerns and Virtual Offices
Social media platforms have cited security issues as a barrier to opening physical offices in Pakistan. As a compromise, they are considering virtual office setups to maintain presence while addressing security concerns. This approach aims to balance operational needs with regulatory requirements.
Efforts Towards Digitization and Mobile Manufacturing
Senator Farooq H. Naek highlighted concerns over escalating mobile phone prices, emphasizing their impact on digital access and economic growth. In response, the Federal Board of Revenue (FBR) plans to engage in dialogue to mitigate these challenges. The emergence of local mobile manufacturing, with 37 companies producing 20 million units annually, including 40% smartphones, marks a significant stride towards enhancing digitization efforts.
Updates on Telecommunications and Digital Infrastructure
Internet Access and 5G Auction
Chairman PTA reported that 56% of Pakistan’s population now has internet access, with preparations underway for the upcoming 5G spectrum auction in March or April 2025. These developments underscore Pakistan’s progress in digital connectivity despite intermittent disruptions during critical events.
Mobile Services Suspension and Telenor’s Exit
Concerns were raised over the suspension of mobile services during sensitive periods like religious observances and elections. The exit of Telenor from the Asian market, including Pakistan, due to adverse business conditions and financial losses, has prompted reflections on the telecom regulatory environment.
Regulatory and Taxation Issues in the Telecom Sector
IoT Technology and Satellite Policy
The committee discussed the imminent launch of IoT technology licensing and the finalization of Pakistan’s satellite policy. These advancements are poised to bolster technological infrastructure and expand connectivity across diverse sectors.
Taxation of Social Media Giants and PTA Regulations
Questions were raised regarding the taxation of international advertisements by social media giants operating in Pakistan. With ongoing negotiations and regulatory frameworks evolving, the focus remains on equitable taxation practices and adherence to local laws to support national interests.
