To address growing concerns related to currency fluctuations, telecom companies that repatriate their profits in US dollars are urging changes to business agreements.
Samaa TV obtained a copy of the letter written by OICCI to the Pakistan Telecom Authority, highlighting the pressing need for this policy change.
The recent depreciation of the Pakistani Rupee has made conducting operations in Dollars less favourable, prompting companies to seek policy adjustments.
The Overseas Investors Chamber of Commerce (OICCI) has been at the forefront of these efforts.
In a letter addressed to the federal government on behalf of foreign telecom companies, the OICCI expressed apprehensions regarding the upcoming spectrum auction.
The auction, which typically requires telecom firms to pay in Dollars for licence renewals and spectrum purchases, has raised red flags due to the currency's erratic performance.
In response to these concerns, OICCI has proposed a fundamental alteration. Specifically, they've recommended that the price of spectrum in the additional auction should be quoted in Pakistani Rupees rather than US Dollars.
This shift would align with the demands of telecom companies, who wish to conduct these critical business transactions in the local currency.
The telecom sector in Pakistan has seen significant investment in recent years, with $5.43 billion invested between 2017 and 2022.
The sector has also been a major contributor to the national treasury, depositing Rs948 billion in duties and taxes over the past five years.
However, the monthly revenue per user of Pakistani telecom companies is significantly lower than the global average.
The average monthly revenue per user in Pakistan is $0.80, while the global average is $8 dollars. This is a key reason why telecom companies in Pakistan are among the major sectors borrowing from banks to meet capital requirements.
