KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb met a delegation of telecom infrastructure companies and venture capital firms on Friday to review sectoral issues, including taxation and regulatory challenges, as the government looks to support investment in digital connectivity and technology-led growth.

Unlike mobile operators that sell voice and data services to consumers, telecom infrastructure companies own and operate physical assets such as mobile towers, which they lease to network operators. The firms operate capital-intensive businesses that rely on long-term investment and face regulatory approvals for tower deployment, power supply and right-of-way permissions.

Tower-related businesses in Pakistan also face tax issues alongside high upfront costs, import duties on equipment and complex provincial and local approval processes as constraints on expansion.

“During the meeting, participants shared an overview of their respective business models, operational dynamics, and on-ground challenges, particularly those related to physical infrastructure deployment and regulatory compliance,” the finance division said in a statement after the meeting.

“Members of the delegation presented a number of proposals aimed at rationalizing and relaxing elements of the existing tax regime to help facilitate further growth, enhance investment flows and support expansion in both the telecommunications infrastructure and venture capital sectors,” it continued.

The finance minister said the government was committed to facilitating private sector-led growth while maintaining fiscal discipline, and stressed the importance of predictable and transparent policies to attract long-term investment in technology and infrastructure.

“It was agreed that a dedicated working group would be constituted, comprising representatives from the Tax Policy Office and other relevant stakeholders, to undertake a detailed examination of the proposals and recommendations presented by the delegation,” the statement said.

“The working group will assess the proposals in detail and develop actionable recommendations,” it added.