ISLAMABAD/KARACHI: The Pakistan Telecommunication Authority has informed the country's biggest mobile network, Jazz, and second-largest telecoms firm, Telenor, that their licences will stand expired on August 21 if the companies do not agree to pay a renewal fee of $450 million as per the PTA’s terms and conditions, PTA and Jazz officials said this week.
Pakistan’s telecoms market was deregulated in 2004 and foreign firms such as Jazz have invested heavily. But now the company fears the new renewal fee, which it says goes against an agreement struck in 2004, will pose a significant risk to the connectivity of millions of Pakistanis and jeopardize a growing digital economy.
According to PTA figures as of April 2019, Pakistan has 161 million cellular subscribers, with 59.2 million using Jazz and 44.8 million on Telenor.
“The decision by PTA to expire the licences of operators on August 21, 2019, if not renewed on their terms, is indeed concerning,” Ali Naseer, Chief Corporate and Enterprise Officer at Jazz, told Arab News in an interview this week. “This can potentially disrupt services for millions of Pakistani cell phone users.”
A Telenor spokesman did not respond to repeated calls for comment but a PTA directive to Telenor dated July 22 and seen by Arab News orders the company to pay the $450 million renewal fee by the August 21 deadline and on the PTA’s terms, or risk discontinuation of operations.
Mobile technology is the primary means of communication for millions of Pakistanis. Recent intelligence research by the GSM Association, a trade body that represents the interests of mobile network operators worldwide, estimated the total economic impact of mobiles on Pakistan’s economy was $17 billion, or 5.4% of GDP.
In 2017, total direct tax and fee payments by the mobile sector were estimated at $950 million, 29% of operator revenue, and the wider mobile ecosystem contributed a total of $1.9 billion in direct and indirect taxes in 2018, as per the GSM Association. A tax directory issued by the Federal Board of Revenue for tax year 2017 listed Telenor and Jazz among the country's top corporate taxpayers.
Pakistan’s government is currently struggling to lift revenues, cut ballooning public debt and raise foreign reserves. A recently signed loan agreement with the International Monetary Fund is aimed at shoring up fragile public finances and strengthening a slowing economy.
“It’s important that Pakistan doesn’t ... place gaining inflated revenues from spectrum licences above the connectivity of its citizens,” Brett Tarnutzer, Head of Spectrum at GSMA, said. “Spectrum prices and taxes should be set at a sufficiently low level that allows operators to deliver affordable services and deploy mobile broadband widely.”
“NEGLIGENCE AND INCOMPETENCE”
The licences of both Jazz and Telenor were originally set to expire on 25 May. In early May, the two companies took PTA to court after the Authority asked them to pay a $450 million renewal fee, more than double the dollar price at which the operators originally acquired licences at auction in 2004.
At the heart of the court challenge between the telecom firms and the Pakistan government is a 2015 telecommunications policy that replaced a 2004 version and which Jazz and Telenor say outlined the terms and conditions for auctions of new spectrums but did not lay down any guidelines regarding renewals.
Globally, licence renewal terms are to be communicated to operators 18 months before a licence is due to expire. According to PTA documents seen by Arab News, the Authority came up with new terms on May 9, a little over two weeks before the May 25 deadline and after Jazz and Telenor had taken the matter to court.
“That is the first example of negligence or incompetence because now, in 2019, when the renewals were due, we found ourselves in a situation where there is no framework,” Naseer said. “Had they [government] come out with a reasonable policy, we would have accepted that because we want predictability. Jazz is now 25 years in the market, we are one of the largest foreign direct investors in the country, we’re not going anywhere in a hurry. We are beholden to the country and we want to work and progress.”
Jazz also says that it communicated its intention to renew its licence 30 months prior to the May 25 expiry deadline, as specified in the licence terms. PTA was then required to inform the operators about the renewal terms and conditions within three months of receiving their intent for renewal, which the Authority did not. In the absence of a new set of guidelines formulated and communicated within the deadline as set by the law and the licence terms, Jazz and Telenor argued in court that the 2004 licence terms and conditions should continue to apply to the latest renewal.
After several hearings, the Islamabad High Court remanded the case back to PTA last month, asking the Authority to review the terms of renewal with a “fresh eye.” After quasi-judicial hearings for both Jazz and Telenor, PTA concluded on July 22 that the telecom operators would have to pay the set price of $450 million by August 21.
PTA directives to Jazz and Telenor seen by Arab News said payment terms for the $450 million renewal fee would be 100% upfront or 50% upfront with the remaining 50% paid in five equal annual installments on the London Interbank Offered Rate, plus 3%. The payment could be made in USD or its equivalent in Pakistani rupees, calculated at the market exchange rate at the time of payment.
“We are disappointed that PTA has not been able to see our point of view on these renewals,” Naseer said. “We are committed to endeavour towards improved connectivity and an enabling digital environment in Pakistan.”
A PTA spokesman declined repeated requests for an interview and only referred to public documents about the licences.
“EVALUATING ALL OPTIONS”
The decision by Pakistan’s cash-strapped government to set the new renewal fee in US dollars and not in local rupee currency, which has lost about 40 percent against the dollar in the last 20 months, is another major sticking point for the mobile operators.
The 2004 auction for a 15-year licence cost $291 million, equivalent to Rs17 billion at the 2004 exchange rate. But with the rupee plunging to record lows against the dollar, Jazz now faces paying Rs67 billion for $450 million, a 265% increase compared to what Jazz paid in 2004.
Naseer said the company earned and charged customers in local currency, not dollars, and thus setting the renewal fee in dollars was “unsound.”
“We believe in Pakistan and if word gets out that existing investors are being treated like this it makes it very difficult for us to say ‘Pakistan is open for business’,” Naseer said.
Jazz says it is now evaluating the option of renewing its licence at the PTA’s asking price, letting it expire or filing an appeal with the Islamabad High Court before August 22. Telenor’s options are similar.
“Honestly, at this stage we are evaluating all our options,” Naseer said. “Nothing has been ruled out.”
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
- Pakistan’s biggest and second-largest telecom firms have taken the government to court over the renewal process and price
- Companies believe licence price hike goes against a 2004 agreement and have challenged the PTA for setting the price in USD
PM visits Pakistan Pavilion at COP28 in Dubai, appreciates experts for efforts to mitigate climate risks
- Development comes ahead of PM Anwaar-ul-Haq Kakar’s address with the World Climate Action Summit on Saturday
- He will present Pakistan’s ‘vision for change,’ advocate for shared commitments to mitigating climate risks, Islamabad says
ISLAMABAD: Pakistan Prime Minister Anwaar-ul-Haq Kakar on Friday visited his country’s pavilion at the venue of United Nations (UN) Climate Change Conference, or COP 28, in Dubai, his office said, adding the caretaker premier appreciated efforts of Pakistani experts for the mitigation of climate-related risks.
The Pakistan prime minister arrived in Dubai this week to attend the World Climate Action Summit during the 28th UN Conference of Parties, which is running from November 30 till December 12 and looks to address some of the most-pressing issues related to what experts say is a rapidly accelerating climate crisis.
Pakistan, one of the most vulnerable nations to climate change, has set up its own pavilion at the conference venue and will use the conference to remind wealthy countries of their “crucial” responsibility in supporting climate-vulnerable nations and the need for “equity and justice” in global climate policies, according to the Pakistani planning ministry.
During his visit to the Pakistan Pavilion at COP 28, PM Kakar met with Pakistani climate experts, who briefed him on various initiatives to deal with the looming climate crisis, Kakar’s office said in a statement.
“The Prime Minister was briefed on the efforts being made by Pakistan with regard to the negotiations and facilitation in operationalization of the Loss and Damage Fund,” it said.
“The Prime Minister was also briefed on the ‘Living Indus Initiative’ which is designed to rehabilitate the health of the Indus Basin in Pakistan through climate-resilient approaches and nature-based solutions.”
Nearly 200 nations agreed on Thursday to launch a fund to support countries hit by global warming, in a historic moment at the start of UN climate talks in the oil-rich UAE. The formal establishment of the loss and damage fund, long sought by climate-vulnerable nations, provided an early win at COP28, where sharp divisions over the phasing out of fossil fuels were immediately apparent.
The momentous occasion followed Pakistan’s crucial role at COP27 in Egypt, where, as the chair of the G77 and China group, it advocated for the establishment of the fund.
PM Kakar’s visit to his country’s pavilion came a day ahead of his address at the World Climate Action Summit where he would present Pakistan’s “vision for climate change,” according to the Pakistani foreign office.
“He will address the summit tomorrow, where he will present Pakistan’s vision for climate change, advocating for common commitments in mitigation, adaptation, climate finance, and the loss and damage fund,” the foreign office said on Friday.
“He will also emphasize equity and global cooperation for climate resilience. At COP28, Pakistan aims to collaborate with developing countries, for the operationalization of the ‘loss and damage’ fund, a meaningful outcome from the Global Stock Take, and the fulfillment of the long-overdue goal of mobilizing $100 billion annually in climate finance.”
Pakistan headline inflation rises 29.2% year-on-year on back of gas price hike
- Prices went up by 2.7 percent in November as compared to a 1 percent increase in the month before
- Analysts say increase in inflation figures for November is ‘in line with expectations’ after gas price hike
ISLAMABAD: Pakistan’s consumer price index (CPI) jumped 29.2 percent in November on a year-on-year basis, the country’s statistics bureau said on Friday, with analysts attributing monthly increase in prices to a recent hike in gas tariff.
The headline inflation was recorded at 26.8 percent in October and 23.8 percent in November last year, according to the Pakistan Bureau of Statistics (PBS).
Prices went up by 2.7 percent in November as compared to a 1 percent increase in the month before and a rise of 0.8 percent in November 2022.
Financial analysts say the increase in inflation figures for the month of November was “in line with the expectations” after the gas price hike.
“The inflation for the month of November is in line with the expectations. The major impact has come from the gas tariff hike,” Samiullah Tariq, a director at the Pakistan Kuwait Investment Company, to Arab News.
“Going forward we hope that the inflation would ease off.”
In late October, Pakistan announced a sharp increase in the price of natural gas for most households and industries ahead of the cash-strapped country’s first review of a $3 billion International Monetary Fund (IMF) bailout it entered in July.
While the government did not increase the tariff for the protected category (57 percent of the domestic consumers), it increased the fixed monthly charge from Rs10 to Rs400 for this category.
The price of gas was set at Rs2,100/mmbtu for export process industry, Rs2,400/mmbtu for export captive industry, Rs2,200/mmbtu for non-export process industry, Rs2,500/mmbtu for non-export captive industry, and Rs3,600/mmbtu for the CNG sector.
In November, Pakistan cleared the first review of the nine-month standby arrangement, paving the way for Islamabad to receive a second tranche of around $700 million from the lender.
Among the food items that recorded highest increase in November prices were tomatoes (60.42 percent), potatoes (14.92 percent), tea (12.95 percent), onions (12.32 percent), dry fruits (7.91 percent), fish (7.75 percent), eggs (7.15 percent) and fresh vegetables (4.47 percent), according to the PBS.
Non-food items whose prices recorded the highest increased included gas charges (280.55 percent), woolen readymade garments (8.16 percent), dental services (5.19 percent), transport services (5.11 percent) and solid fuel (3.52 percent).
Pakistan Cricket Board appoints ex-cricketers Salman Butt, Kamran Akmal consultants to chief selector
- The development comes amid a reshuffle in Pakistan national team and the management
- It began amid Pakistan’s poor show during the 50-over World Cup tournament last month
ISLAMABAD: The Pakistan Cricket Board (PCB) on Friday said it had appointed former cricketers Salman Butt, Kamran Akmal and Rao Iftikhar Anjum consultants to Chief Selector Wahab Riaz, amid a reshuffle in the national side and the board’s management.
The reshuffle began amid Pakistan's poor show at the World Cup that saw the national side crashing out of the showpiece tournament even before the semi-final stage.
Former fast bowler Wahab Riaz was appointed Pakistan’s chief selector last month, after Inzamam-ul-Haq stepped down in October following allegations of a conflict of interests.
On Friday, the PCB confirmed the appointment of Akmal, Anjum and Butt as consultant members to Riaz.
“The three have assumed their responsibilities in the selection panel with immediate effect. Their first assignment as consultant members to the chief selector includes the upcoming five-match T20I series against New Zealand, set to commence on 12 January 2024 following the conclusion of the Test tour to Australia,” the PCB said in a statement.
“When not engaged in selection duties, the consultant members may be assigned additional tasks such as conducting skills camps.”
Pakistan finished fifth in the 10-team World Cup tournament that culminated last month, with Australia lifting the trophy for a record sixth time.
Babar Azam resigned from the captaincy in all formats and Shan Masood was made test captain. Shaheen Afridi was appointed as skipper of T20 side while former captain Mohammad Hafeez was named as team director, who will also be the head coach of the team on the twin tours of Australia and New Zealand.
The PCB last month also appointed former international players Umar Gul and Saeed Ajmal as bowling coaches for the national team.
Pakistan gunmen kill policeman guarding polio vaccination team
- The incident occurred in a tribal border region that was once a haven for Taliban militants
- Pakistan and neighboring Afghanistan are only two countries where polio remains endemic
PESHAWAR: A Pakistani policeman was killed when militants attacked a polio vaccination team on Friday, police said, the latest casualty in the country’s long campaign against the crippling disease.
Pakistan and neighboring Afghanistan are the only two countries where polio remains endemic and vaccination teams are frequently targeted by militants.
The latest incident occurred in Malik Din Khel, part of the former tribal border region that was once a haven for Taliban militants.
“Two gunmen riding a motorbike opened fire on policemen guarding a two-member polio vaccination team,” district police chief Saleem Khan Kulachi told AFP.
“One policeman died at the scene while another sustained a minor injury,” he said.
One of the gunmen was shot dead by police.
Local police official Zahir Ahmed Afridi also confirmed the details, adding that the health care workers were unhurt.
Pakistan initiated a week-long nationwide polio vaccination campaign on Monday, with the goal of inoculating more than 44 million children across much of the country.
There was no immediate claim of responsibility for the attack but Islamist militants, including the Pakistani Taliban, have killed scores of polio vaccination workers and their security escorts in the past.
Islamist opposition to inoculation grew after the US Central Intelligence Agency organized a fake vaccination drive to help track down Al-Qaeda’s former leader Osama bin Laden in the Pakistani garrison town of Abbottabad.
Pakistan has reported five cases of polio this year, while 20 were reported last year, according to the Global Polio Eradication Initiative.
UAE to invest in Pakistan’s agriculture, power, ports and other sectors under recent agreements — envoy
- Pakistan signed several agreements worth up to $25 billion during Prime Minister Anwaar-ul-Haq Kakar’s UAE visit this week
- The UAE consul-general applauds the role of Pakistan’s Special Investment Facilitation Council in attracting foreign investment
KARACHI: The United Arab Emirates (UAE) was focusing on Pakistan’s agriculture, ports and logistics, power and other sectors under the recently signed multi-billion-dollar investment agreements with the South Asian country, the Emirati consul-general in Karachi said on Friday.
Pakistan and the UAE signed the multi-billion-dollar memorandums of understanding (MoUs) during Prime Minister Anwaar-ul-Haq Kakar’s visit to the Gulf nation this week. Under the agreements, the UAE is expected to invest up to $25 billion across diverse sectors in Pakistan.
“Couple of days ago, Pakistan has signed number of agreements with UAE of $20-25 billion. That is good investment,” Consul-General Dr. Bakheet Ateeq Al-Remeithi said at a press conference at the UAE Consulate in Karachi.
“[The] UAE always investing in Pakistan and standing beside Pakistan in a lot of sectors in agriculture sector, in port and logistics sector, also in power sector, in free zones to link all these things together to have more bright export and re-export.”
The Emirati envoy said this investment was mutually beneficial for both nations and the next year would be brighter with regard to inflows that had already started coming into Pakistan.
“More than this (investment) has also to come because many investors from the UAE’s private sector, apart from the government, also want to invest in Pakistan, particularly in food security, health and education sectors,” he said.
He appreciated the formation and the “proactive role” of the Special Investment Facilitation Council (SIFC) — a Pakistani civil-military hybrid forum established in June this year — in fast-tracking the decision-making process and promoting investment from foreign nations, particularly Gulf countries.
“The forum is very fast and effective,” the envoy said, adding he had personally dealt with the forum and things had materialized within days.
Under the investment coming from the UAE, according to the consul-general, an export hub will be established in Karachi and logistic support will be provided to remote areas of Pakistan’s southwestern Balochistan and southern Sindh provinces.
“The investment of the UAE in Pakistan is a part of relationship and to be together in the business that is to make in the environment and places and to have a short list for the logistics from all areas like and Balochistan and Sindh,” he said.
Pakistan and the UAE are close allies. The Gulf nation is Pakistan’s third-largest trade partner after China and the United States. It is also viewed as an ideal export destination by policymakers in the South Asian country due to its geographical proximity with Pakistan.
The UAE is also home to an estimated 1.8 million Pakistani expatriates and, after Saudi Arabia, is the second-largest source of remittances for the South Asian nation of more than 240 million.
The Pakistan PM, during an ambitious visit to the Gulf region this week, oversaw the signing of the MoUs between Pakistan and the UAE on energy, port operation projects, waste water treatment, food security, logistics, minerals, and banking and financial services sectors.
“These MoUs will unlock multi-billion dollars of investment from United Arab Emirates into Pakistan and will help realize various initiatives envisioned under [Pakistan’s] Special Investment Facilitation Council,” the Pakistani foreign office said at the time.
PM Kakar’s UAE visit was followed by his stopover in Kuwait, during which the two countries signed 10 deals worth several billion dollars.
