Telecom Sector Investment Slumps to Lowest in 5 Years in FY23

Telecom sector investment has been on a continuous decline during the last several years plummeting to $762 million in the fiscal year 2022-23 (FY23), the lowest in the last five years, according to Pakistan Telecommunication Authority’s (PTA) Annual Report 2023. The telecom sector investment stood at $1.666 billion in FY22, $1.241 billion in FY21, $1.14 billion in FY20 and $882 million in FY19, according to the report. The report further highlights that Cellular Mobile operators (CMOs) registered the maximum decline in investment which stood at $396 million in FY23 compared to $1.175 billion in FY22. Similarly, the FDI inflows in the telecom sector have also declined in FY23, with inflows of just $58 million in FY23, compared to $175 million in FY22 and $204 million in FY21. The industry holds substantial investment potential, with local industry investments of $5.7 billion, and FDI of $1.4 billion over the last five years (FY 2018-19 to FY 2022-23), the report notes. PTA stated that it stepped up its collaborative efforts to improve the ease of doing business and attract foreign investment, particularly through the Special Investment Facilitation Council (SIFC). During the year under review, the government established SIFC to attract Foreign Direct Investment as part of the Economic Revival Plan aimed at transforming the country’s economy. SIFC consists of apex, executive, and implementation committees, and focuses on creating a business-friendly environment in priority sectors like defense, agriculture, minerals, IT and telecommunications, and energy. To attract investment in the telecom sector, PTA and MoITT organized several industry consultations, resulting in detailed recommendations that were forwarded to SIFC.