Major General (retd) Hafeezur Rehman, Chairman of the Pakistan Telecommunication Authority (PTA), addressed the Senate Standing Committee on Cabinet Secretariat about the current status of the social media platform X (formerly Twitter).
Rehman stated that the platform’s access would be restored based on government directives, highlighting that the decision to lift the ban rests solely with the government. The platform has been suspended in Pakistan since February 17, with the federal government defending the ban on grounds of national security.
Despite the restriction, X can still be accessed through virtual private networks (VPNs), though usage has reportedly decreased by 70% due to these limitations. The PTA is in the process of whitelisting VPNs to control access more effectively.
Rehman emphasized that the PTA engages with social media platforms regarding complaints related to content that violates Pakistani laws. X has faced criticism for addressing only 7% of the complaints received, making it less responsive compared to other platforms like TikTok. The PTA has the authority to block or unblock platforms based on governmental orders, underscoring its role in regulating digital content in alignment with national security concerns.
Telecom Sector Performance and Future Plans
During the Senate meeting, Rehman also provided an update on Pakistan’s telecom sector. He disclosed that an auction for 5G spectrum is anticipated around March or April next year, marking a significant step towards advancing Pakistan’s digital infrastructure.
The sector has shown robust growth, with revenue increasing from Rs 727 billion in 2021-22 to an estimated Rs 1,000 billion for 2023-24. Approximately 20 million mobile phones are manufactured annually in Pakistan, with 40% being smartphones. The local manufacturing sector has expanded significantly, involving 37 local companies.
The PTA chairman noted that Pakistan’s telecom sector had not experienced any cyberattacks in the past two years, which reflects the sector’s stability and resilience. Improvements in network coverage through Universal Service Funds (USF) and addressing issues related to existing 4G/LTE infrastructure were highlighted. The sector’s performance underscores Pakistan’s commitment to enhancing digital connectivity and technology infrastructure.
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Taxation and Digitalization Challenges
Taxation on telecom services and digital platforms remains a critical issue. Rehman mentioned that Pakistan imposes a 34.50% tax on telecom users, which is relatively high compared to neighboring countries like Sri Lanka (20-40%) and India (18.5%).
Law Minister Azam Nazeer Tarar emphasized the need for a formal tax policy on digital advertisements and content creation. Discussions are underway to establish such policies to align with global standards. Tarar pointed out that digitalization is crucial for economic development, and the matter will be addressed with the Federal Board of Revenue (FBR).
The committee also discussed the challenges faced by international social media platforms in setting up operations in Pakistan due to security concerns. However, these platforms are considering opening virtual offices to comply with local regulations while ensuring operational security. The focus on digital taxation and regulatory frameworks aims to foster a more structured and accessible digital economy.
Local Manufacturing and Infrastructure Growth
The growth in local mobile phone manufacturing has been significant, with about 37 companies involved in producing 20 million phones annually. This includes 40% smartphones, reflecting the rising demand for advanced mobile technology.
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The local manufacturing sector is crucial for promoting digitalization and increasing technology accessibility in Pakistan. Furthermore, the PTA and other governmental bodies are working to enhance internet access, with 56% of the population currently having internet connectivity.
The development of optical fiber infrastructure and improvements in the Frequency Allocation Board (FAB) operations were also discussed. Pakistan’s optical fiber network is relatively underdeveloped compared to other countries, and addressing these gaps is essential for supporting future digital advancements. The focus on expanding and upgrading digital infrastructure aligns with Pakistan’s broader goals of technological advancement and economic growth.