Viewers decry hike in monthly fee for state-run Pakistan Television

In this photo taken on June 16, 2019, people watch a live broadcast of a 2019 Cricket World Cup match at a restaurant in Karachi. (AFP)
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Updated 24 July 2020
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Viewers decry hike in monthly fee for state-run Pakistan Television

  • All electricity consumers in Pakistan pay a monthly fee of Rs35 for PTV
  • Government recently said it planned to hike the fee to Rs100

ISLAMABAD: As the government this week deferred its decision to increase the monthly subscription fee for state-run Pakistan Television (PTV) amid a national outcry, members of the public said the impending hike was ‘unjustified’ and would hurt the poorest most. 

All electricity consumers in Pakistan pay a monthly fee of Rs35 for PTV, which adds up to billions in revenue for the broadcaster. But the government has recently said it planned to hike the fee to Rs100.

On Tuesday, information minister Shibli Faraz said the decision to increase the fee was before the cabinet but deferred until next week. 

“An increase in fees from Rs35 to Rs100 will affect those living below the poverty line and majority of the public, not those living in metropolitan cities,” Dr. Shafaq Hashmi, a psychologist in Islamabad, said, adding that she was “forced” to pay a subscription fee even though she did not watch PTV.

“I am paying cable operators to watch [private] TV channels and mostly watch content on the Internet, so this fee is unjustified,” Hashmi said.

PTV was founded in 1964 with the cooperation of the Nippon Electric Company of Japan and Thomas Television International of the United Kingdom. It was nationalized by government in 1970. The channel had television monopoly until the early 2000s when private TV channels were allowed.

Faced with competition, PTV has slowly upgraded, using news tickler, and offering live updates every few hours. But it cannot compete with private networks who have hundreds of stringers and cameras in many of the country’s remote corners. Recently, PTV officials have said the broadcaster has had trouble paying bills and pensions, and would increase its monthly fee to make up the difference.

“This is not merely a matter of increasing the channel’s monthly fee from 35 rupees to 100 rupees,” said Asif Muhammad Khan, an electrician who works at a TV production house in Islamabad. “If you collectively see this, we are burdened with taxes and fees but in return we get no public services.”


Pakistan reaffirms commitment to clamp down on informal sector to encourage investment

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Pakistan reaffirms commitment to clamp down on informal sector to encourage investment

  • Nestlé delegation briefs Finance Minister Muhammad Aurangzeb on localization, efficiency enhancements in Pakistan
  • Improved compliance, transparency, strengthened tax ecosystem central to economic recovery, stresses finance minister

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb reaffirmed the government’s commitment to clamp down on the informal sector on Monday, the Finance Division said, citing transparency and a strengthened tax ecosystem as central to the country’s economic recovery. 

Pakistan’s government has cracked down on smuggled items and tightened enforcement in poorly taxed sectors, such as tobacco, in recent months as it pushes ahead with its efforts to maximize tax collection by discouraging the formal sector. Informal sector comprises businesses that operate outside the tax net, avoid registration and as a result, neglect regulatory oversight and violate quality, safety or labor standards. 

Aurangzeb met a delegation from Nestlé Pakistan at the Finance Division, where the two sides discussed the multinational’s efforts to strengthen its operations in the country through localization, portfolio adjustments and efficiency enhancements. 

“Emphasizing the government’s resolve to clamp down on the informal sector, an effort that has already begun yielding visible results in multiple industries, the finance minister noted that improved compliance, transparency and a strengthened tax ecosystem are central to Pakistan’s economic recovery,” the Finance Division said in a statement. 

Nestlé Pakistan Chief Executive Officer Jason Avancena provided an overview of the organization’s operations, claiming it had strengthened them through localization, portfolio adjustments, advanced automation, efficiency enhancements and continued innovation across product categories. 

Avancena said Nestlé is implementing solar and biomass energy systems, digital dashboards, environmentally improved packaging, and supply-chain automation in Pakistan. The delegation highlighted that Nestlé’s localization efforts have materially strengthened its resilience. 

“They noted that through sustained efforts to localize raw materials and reconfigure product portfolios, Nestlé Pakistan has reduced its import volumes by nearly half over the past three years from around $150 million to approximately $76–80 million, thereby minimizing exposure to foreign-exchange pressures and deepening integration with Pakistan’s agricultural and manufacturing base,” the Finance Division said. 

Aurangzeb commended the multinational for its efforts and underscored the government’s intention to facilitate greater formalization and enhanced tax equity across the food and beverages sector. He noted that informal players have “rapidly expanded” their market share by operating outside the tax net in sectors such as food and beverages. 

The delegation also discussed export performance, including the company’s presence in markets such as the United States, Canada, the Gulf, and the United Kingdom, sharing insights into challenges related to regional trade, particularly the Afghanistan corridor. 

Aurangzeb advised Nestlé to explore logistics partnerships to expand access to Central Asian markets, reiterating that Islamabad remains committed to enabling export-oriented industry growth.