Chairman PTA is unable to attract new investors to invest in the telecom sector of Pakistan.

ISLAMABAD ( BMZ REPORT )

It is interesting to learn that despite several international tours, Chairman PTA is unable to attract new investors to invest in the telecom sector of Pakistan.

Chairman PTA Dr Ismail Shah’s recent visits to Saudi Arabia, Qatar, Oman and Turkey along with other senior officials resulted in nothing but the wastage of tax payer’s money. It seems that no investor is interested to invest in the upcoming and much-awaited auction of 3G Spectrum in Pakistan. Experts are of the opinion that high tax rates, low profit margins and the worsening power crisis are the some of the reasons.

So for now, it seems that the existing players will be the only participants in the 3G Spectrum auction which may lead to substantial cut in the expected revenue – again not a good sign for the Pakistan economy.

This is the question which seems to be the top concern of Chairman PTA, Dr. Syed Ismail Shah these days, as he travels from country to country in hope of attracting some big investors for the upcoming 3G Spectrum Auction in Pakistan. It is indeed a fact that the 3G Spectrum Auction is the ‘next big thing’ for the telecom sector of Pakistan since the Government of Pakistan expects to earn billions of dollars to help the cash-stricken economy of Pakistan. PTA also strives to redeem its lost pride in the South Asian region as even Sri Lanka has now moved to 4G/LTE. Chairman PTA, when assuming the charge in late September 2013, declared the successful 3G spectrum auction as his top priority, however, his efforts to bring in new market players are proving to be a futile exercise. The recent travels of the Chairman PTA and high ups of Ministry of IT to Saudia Arabia, Qatar and Oman have been a waste of tax payer’s money. No one seems to be ready to invest in a country where competition is at its apex, tax rates high, profit margins low and the power crisis worsening day by day. So for now, it seems that the existing players will be the only participants in the 3G Spectrum Auction which may lead to substantial cut in the expected revenue – again not a good sign for the Pakistan economy.

Chairman PTA and officials of Ministry of IT have more foreign visits planned in the coming weeks and we hope, for the sake of Pakistan, that the next time Chairman PTA asks the question to the potential investors, the answer is ‘Yes’.

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