Country imported telecom apparatus and mobile sets worth $114.01 million in July 2017; this was 54% higher than imports of $74.26 million made in the same month of previous year
\nMONITORING DESK
\nKARACHI
\nFollowing the announcement of tax incentives in the budget for 2017-18, the import of telecommunication equipment and mobile phones has increased more than 50%.
\nThe implementation of budgetary measures has facilitated the telecom industry and people as well as helped the government control smuggling of goods into the country.
\nAccording to latest data of the Pakistan Bureau of Statistics, the country imported telecom apparatus and mobile sets worth $114.01 million in July 2017. This was 54% higher than imports of $74.26 million made in the same month of previous year.
\nIn the budget, the government had replaced customs duties of 11% and 16% with a uniform regulatory duty of 9%. It reduced customs duty on smartphones to Rs650 per set from Rs1,000. Similarly, it reduced withholding income tax on mobile calls to 12.5% from 14% and federal excise duty on calls from 18.5% to 17%.
\nOffice-bearers at the Karachi Electronic Dealers Association have said on multiple occasions that 60% of the mobile phones available in the country are smuggled.
\nThe budget incentives may have helped the government replace the smuggled goods with legal imports.
\nAn official at a mobile phone service providing company said the surge in imports of telecom equipment came as a result of increased demand for telecom services and the tax incentives facilitated the mobile phone services companies in that regard. Imports in June were also higher.
\nAlmost every cellular operator is upgrading its communication network to 3G\/4G technologies and expanding to new areas.
\nMonths back, Jazz won a 4G licence. Prior to this, it acquired Warid Telecom. Last year, Telenor got a 4G licence and a few months ago, Ufone\u2019s CEO announced that the company would completely shift its network in Lahore to 3G technology.
\n\u201cSome of the operators may be importing the equipment to upgrade and expand their networks under the PTA (Pakistan Telecommunication Authority) Rollout Obligations while others may be doing it to meet consumer demand,\u201d he said.
\nThe official added phone operators made investments under two strategies. First strategy called \u201cfront loaded\u201d binds the operators to invest heavily in equipment at the beginning of the year, which might be the case in July 2017.
\nThe second strategy called \u201crear loaded\u201d requires the operators to make investment in the middle or end of their financial year. This strategy is adopted by the operators facing budget constraints.
\nHe said Pakistan was fast becoming a digital country while data consumerism had yet to show business growth. International surveys and expert opinions suggest investments in the IT and telecom sector pays back in the shape of economic activities, particularly the creation of job opportunities
\nAccording to breakdown of the data, imports of telecom equipment increased 62% to $45.44 million in July 2017 from $28.05 million in the same month of previous year. Similarly, imports of mobile phones rose 48% to $68.57 million from $46.20 million.
\nHowever, imports of equipment and phones had slipped to $1.35 billion in the previous fiscal year 2016-17 from $1.36 billion in FY16.<\/p>\n","protected":false},"excerpt":{"rendered":"
Country imported telecom apparatus and mobile sets worth $114.01 million in July 2017; this was 54% higher than imports of $74.26 million made in the same month of previous year MONITORING DESK KARACHI Following the announcement of tax incentives in the budget for 2017-18, the import of telecommunication equipment and mobile phones has increased more […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-20381","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n