Pakistan Telecom, IT, Tech updates

[ghazi52]

21.28m mobile handsets manufacutred locally in 2023​

Business Recorder
Mar 31, 2024

ISLAMABAD: The local manufacturing/assembling plants manufactured/assembled 6.1 million mobile handsets during the first two months (January-February) of the calendar year 2024 compared to 0.3 million imported commercially.

Official data revealed that local manufacturing/assembling plants manufactured/assembled 3.83 million mobile handsets during February compared to 0.06 million imported commercially.

Further, the locally manufactured/ assembled 6.1 million mobile phones handsets included 2.78 million 2G and 3.35 million smartphones. Besides, as per the PTA’s data, 60 percent of mobile devices are smartphones, and 40 percent are 2G on the Pakistan network.

Local manufacturing/assembling of mobile handsets declined by around four percent during the calendar year 2023, attributable to issues in imports on account of restricting the opening of Letters of Credit (LCs) for mobile phones’ accessories. However, despite restrictions, commercial imports of mobile handsets increased during this period, official data revealed.

Local manufacturing plants have manufactured/assembled 21.28 million mobile handsets during calendar year 2023 compared to 21.94 million during the same period of 2022 and 24.66 million in 2021. However, commercial imports increased from 1.53 million in 2022 to 1.58 million in 2023.

Further, the locally manufactured/assembled 21.28 million mobile phones handsets included 13 million 2G and 8.28 million smartphones.

The country imported mobile phones worth $1.148 million during the first eight months (July-February) of the current fiscal year 2023-24, registering a growth of 156.43 percent when compared to $447.854 million during the same period of last fiscal year.

Pakistan’s mobile phone imports declined by 17.46 percent on a Month-on-Month (MoM) basis in February 2024 and stood at $160.899 million compared to imports of $194.928 million in January 2024, according to the Pakistan Bureau of Statistics (PBS).

Mobile phone imports registered 386.78 percent growth on a Year-on-Year (YoY) basis in February 2024 when compared to $33.054 million in February 2023.

Copyright Business Recorder, 2024

 

[ghazi52]

PIF, STC to form region’s biggest telecom tower firm​

Will set up new company with 30k towers valued at $6.7b with annual revenues of $1.3b

REUTERS
April 23, 2024

Saudi Arabia’s sovereign wealth fund PIF has agreed to buy a 51% stake in Telecommunication Towers Company Ltd (TAWAL) from STC Group, paving the way for the creation of the region’s largest telecom tower company, PIF and STC said on Monday.

Under the agreement, PIF and STC will combine TAWAL and Golden Lattice Investment Company (GLIC) to set up a newly-formed company with around 30,000 mobile tower sites and estimated annual revenues of around $1.3 billion, they said in a joint statement.

The combined new entity will be owned 54% by PIF and 43.1% by STC, while GLIC minority shareholders will own the remaining share capital. The deals, including the 51% stake sale for an expected cash consideration of 8.7 billion riyals ($2.32 billion) are expected to be completed in the second half of the year.

“The deal marks a milestone in the establishment of the biggest Tower company in the region with 30k towers valued at $6.7billion,” Ziad Itani, head of TMT equity research coverage at Arqaam Capital, told Reuters in an emailed statement.

“STC is a clear beneficiary from the deal of as the sale price of Tawal” is bigger than five times its book value and five times its revenues, Itani said, adding that the cash inflows of 8.7 billion riyals will allow the company “to pursue additional M&A and investment opportunities”.

STC CEO Olayan Mohammed Alwetaid told Reuters that the transaction was “a step forward in STC Group’s expansion, growth, and recycling the return on investment.”

Published in The Express Tribune, April 23rd, 2024.

 

[RescueRanger]

Number of cellular subscribers falls to 189.74m: PTA​

ISLAMABAD: The number of cellular subscribers in Pakistan decreased from 190.44 million by end-August 2023 to 189.740 million by end-September 2023

Slightly misleading headline here - the reason for this decease not mentioned in the cancellation of multiple illegal / unregistered and dual-registered SIM cards not acceptable under new provisions by the PTA.

Statistics are like bikinis - what they reveal is suggestive, what they conceal is VITAL.

 

[RescueRanger]

FBR Enforcement cancel 8727 sim cards belonging to "non-filers"


Actual list not included for privacy reasons as it contains names and NIC Numbers.

 

[ghazi52]

FBR orders PTA, telcos to block over 500,000 mobile SIMs of non-filers​

• Authority says decision taken after they failed to file taxes

BR
April 30, 2024

The Federal Board of Revenue (FBR) Tuesday ordered that the Pakistan Telecommunication Authority and telecom operators block 506,671 SIM cards belonging to non-filers, Aaj News reported.

An Income Tax General Order was issued to disable the SIM cards of persons "who are not appearing on the active taxpayer list but are required to file the Income Tax Retum for Tax Year 2023 under the provisions of the Income Tax Ordinance, 2001 ”.

Tax evaders' SIM cards "will remain blocked until restored by the FBR or the Inland Revenue commissioner having jurisdiction over them," the FBR said.

Earlier, the FBR issued final notices to non-filers for blocking their mobile SIM cards and mobile phones.

One of the notices issued to the non-filers said, “You were issued notice under section 114B to file return, non-compliance results in disconnection of electricity, gas & mobile connections. Please file return immediately,” it added.

The FBR has also implemented the strategy to disconnect the electricity and gas connections of non-filers.

 

[ghazi52]

Pakistan’s IT cos like incorporating in Dubai: ease of payments is just one of many reasons​

Bilal Hussain
May 22, 2024

Dubai’s appeal as the preferred destination for Pakistan’s software companies has a lot to do with the streamlined payment process, favourable business environment, and better enforcement of contracts among a number of other reasons.

These factors were highlighted by IT sector companies that added that the emirate’s location and infrastructure act as icing on the cake.

“The advantage of incorporating in Dubai is the seamless access to Stripe and Paypal, facilitating payment collection from our clients,” Danish Ayub, founder of software company Carpe Diem that has incorporated in Dubai, told Business Recorder in an interview.

“We can effortlessly integrate our merchant account onto our website, enabling easy purchase transactions for our international clients using their credit cards.”

While Pakistan has struggled to attract a player like PayPal – despite repeated assurances from several ministers over the course of several years – access to payments systems is just one reason why firms look to incorporate their office in Dubai.

Additionally, many believe Pakistan’s financial system is too tightly regulated – Pakistan was ranked 119th when it came to ‘getting credit’ on the World Bank’s Ease of Doing Business Index and a poor 161st when it came to paying taxes. The worst score on the index is 190.

In comparison, the UAE does not have a single rank in three digits across all metrics on the World Bank’s Ease of Doing Business Index. A more favourable tax regime – income and corporate – has also attracted capital from all around the world.

“While Pakistan offers similar services, cumbersome sign-up formalities and extensive documentation requirements make the process lengthy and tedious,” added Ayub, who also highlighted technical issues in the country.

“Integrating our website with their systems is challenging due to outdated APIs.

“These obstacles make it more practical to incorporate elsewhere, like Dubai, where receiving payments is streamlined. Meeting international security standards is crucial for processing credit card transactions on our website, a requirement not easily met in Pakistan.

“Despite Dubai’s 9% corporate tax, the simplicity of payment processing renders this tax insignificant,” Ayub concluded.

Former chairman of Pakistan Software Houses Association for IT and ITeS (P@sha), Syed Ahmad, also highlighted that many IT exporting companies opt to incorporate in countries such as the US, England, and Dubai.

However, he emphasised that Dubai stands out as the most accessible option for Pakistani companies especially for small and medium enterprises.

Ahmad elaborated that incorporating companies outside Pakistan offers more than just payment facilitation.

This factor relates to clients’ preference to deal with entities based outside Pakistan.

Ahmad cited travel advisories against Pakistan in many countries and the challenges nationals face when traveling abroad as reasons for this preference.

Moreover, Ahmad noted that foreign companies are wary of signing contracts solely with Pakistani entities due to concerns about legal enforceability of contracts and the perceived difficulty in pursuing legal action.

He explained that companies feel more at ease signing contracts with entities incorporated in locations like Dubai because of the perceived ease of recourse in case of contract breaches.

The UAE is ranked a highly ninth – out of 190 – on enforcing contracts. It is also ranked the first on the metric of ‘getting electricity’.

Experts believe incorporating an office in Dubai offers Pakistani software companies a strategic advantage, enabling them to leverage a global hub with required infrastructure and a proper legal framework.

They highlighted these reasons as areas Pakistan’s policymakers need to work on, drawing lessons from Dubai and other financial hubs to ensure improvement in the country’s ranking as well.

Copyright Business Recorder, 2024

 

[ghazi52]

Government to establish 10 IT parks by next year: IT Ministry​

• The project of Islamabad IT Park will be completed with the cooperation of South Korea

BR

The government has announced the establishment of ten new Software Technology Parks across the country by next year, according to Radio Pakistan.

This was stated during a briefing by the Ministry of Information Technology to a high-level meeting chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad.

The meeting was informed that 100 new e-employment centers will also be set up in the country by next year.

The project of Islamabad IT Park will be completed next year with the cooperation of South Korea. It will provide startups, incubation centers, banks, restaurants, and other facilities.

The meeting was informed that South Korea is also collaborating in establishing an information technology park project near Jinnah International Airport in Karachi which will be completed by 2027.

So far, 43 software technology parks have been established in 29 cities of the country.

 

[ghazi52]

More than 11,000 SIMs of non-filers blocked so far: FBR​

Development follows IHC clarification that its widely reported stay was not on blocking SIMs but only on action against petitioner Zong.

 

[ghazi52]

FBR to upgrade IT infrastructure through World Bank lending

Business Recorder
Jun 3, 2024

ISLAMABAD: The Federal Board of Revenue (FBR) will modernise its IT infrastructure, set up new data centres and implement an automated income tax refund system with the help of US$ 25 million loan to be provided by the World Bank (WB).

The FBR has submitted a report titled ‘Findings and Recommendations of Committee for effective enforcement of Section 170A’ before the Islamabad High Court in a public interest petition moved by Khurram Shahzad Butt against FBR and its field formations for their negligence and long silence to implement law enacted by Parliament to issue refunds without personal involvement of FBR officers.

The petitioner Khurram Shahzad Butt informed that Member (Policy) FBR personally appeared before IHC and stated that recommendations for effective enforcement of Section 170A of the Income Tax Ordinance 2001 will be implemented in accordance with the US$ 25 million loan expected to be provided by the WB.

The report said that the FBR is currently under a WB project involving the modernisation of its IT infrastructure and setting up of new data centres to help simplify and streamline all associated service delivery aspects. This process also includes issuance of income tax refunds. Therefore, through the use of IT technology, refunds can be processed more quickly and efficiently.

The report submitted before IHC by FBR reveals that FBR’s e-portal has no direct electronic linkage with AGPR, which monthly deducts income tax on gross salary of government employees. FBR’s e-portal is also not integrated with government’s withholding agents, reflecting serious issues in verification of tax deducted at source, meaning thereby that there is an inadequacy of taxpayers’ verification of tax deducted at source by various withholding agents.

 

[ghazi52]

13.08m mobile handsets made locally during January-May​

ISLAMABAD: The local manufacturing/ assembling plants manufactured/ assembled 13.08 million mobile handsets during...

 

[ghazi52]

Chinese firm to deploy optical fiber cable along ML-1​

Gwadar Pro
Sep 4, 2024

ISLAMABAD - Pakistan Railways inked an agreement with Chinese company Sunwalk Ltd. to allow it to deploy optical fiber cable from Karachi to Peshawar along the Main Line-1 (ML-1).

According to a statement of the Pakistan Railways on Tuesday, the Chinese company has deposited Rs205.60 million in advance.

A Pakistani company was also allowed the same facility, which has deposited Rs130 million in advance, Pakistan Railways said. The agreements are for three years, which could be extended, it added.

CEO of Pakistan Railways Amir Ali Baloch signed the agreements on behalf of Pakistan Railways.

 

[ghazi52]

Huawei to train 300,000 Young Pakistanis in ICT skills​

By ShaGwadar Pro
Sep 8, 2024

ISLAMABAD - Chairman of the Prime Minister’s Youth Programme (PMYP), Rana Mashhood Ahmed Khan, visited the Huawei office on Saturday afternoon to discuss the modalities of an extensive training program aimed at equipping 300,000 young Pakistanis with advanced skills in Information and Communication Technology (ICT).

The meeting, which followed crucial technical discussions held on September 4th and 5th, marked a pivotal step in integrating Huawei’s advanced training resources into Pakistan’s educational framework.

The initiative guided by the directives of Prime Minister Mian Muhammad Shehbaz Sharif, seeks to enhance technical education by leveraging Huawei’s global expertise and cutting-edge training materials.

This strategic partnership is expected to substantially elevate the quality and reach of technical education throughout Pakistan, fostering skill development and innovation.

The National Vocational and Technical Training Commission (NAVTTC) will act as the implementation partner under the Prime Minister’s Youth Skill Development Programme.

The collaboration builds upon the foundation established during Prime Minister Shehbaz Sharif’s visit to Huawei’s office in China, underscoring the commitment to advancing Pakistan’s technical education landscape.

 

[ghazi52]

Pakistan's IT exports

In August 2024, Pakistan's IT exports reached $298 million, reflecting a 27% increase year-over-year and a 4% rise month-over-month. This figure surpasses the 12-month average of $275 million.

According to Topline Securities, the significant year-over-year growth is attributed to an expanding global client base for IT companies, particularly in the GCC region.

Additionally, a recent relaxation in the permissible retention limit by the State Bank of Pakistan—raising it from 35% to 50% in Exporters’ Specialized Foreign Currency Accounts—along with the stability of the Pakistani Rupee, has encouraged IT exporters to repatriate a greater share of their profits.

 

[ghazi52]

Pakistani fintech Abhi secures $15m to expand financial inclusion in UAE​

By Staff Reporter | Profit
Oct 17, 2024

Pakistani fintech startup Abhi has raised $15 million in credit financing, led by Shorooq Partners and Amplify Growth Partnership, to expand its financial services in the UAE.

The new funding will enable Abhi to scale its earned wage access (EWA) offering, a service that allows blue- and white-collar workers to access their earned wages before payday. According to the company, Abhi has already facilitated approximately $55 million in EWA across 545,000 transactions in the UAE.

“This investment will further our mission to drive financial inclusion for underserved communities in the UAE using Abhi’s proprietary technology,” said Nathan Kwon, Head of Private Credit at Shorooq Partners.

Abhi’s innovative financial services have positioned the startup as a key player in the MENAP region, which includes the Middle East, North Africa, and Pakistan. The region is undergoing rapid digital transformation, supported by increasing regulatory initiatives and a growing demand for financial inclusion.

Co-founder and CEO of Abhi, Omair Ansari, expressed his excitement about the investment, noting it as a “strong vote of confidence” from regional investors. “This funding allows us to continue our journey of ensuring that every worker, regardless of their position, has access to the financial flexibility they need to succeed,” he added.

With a presence already established in Bangladesh and the UAE, Abhi aims to continue its regional expansion and further its impact. The fintech company’s valuation has grown to $90 million in just two years, underscoring its rapid rise in the industry.

Abhi’s solutions include earned wage access, payroll processing, payroll financing, and SME financing. The startup has partnered with over 550 companies and gained international recognition, being named a Technology Pioneer by the World Economic Forum in 2023, the first fintech in the MENAP region to receive this honor.

This new round of financing is set to accelerate Abhi’s growth, as it continues to pioneer financial inclusion across the region, backed by strategic investors like Shorooq and Amplify.

 

[ghazi52]