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Senate Probes Crushing Taxes On Digital Firms, Demands Telecom Service Improvement

The Senate Standing Committee on Information Technology and Telecommunication convened on Monday to address critical issues plaguing the nation’s digital landscape, including excessive levies on online enterprises and unreliable telecommunication services. Senator Palwasha Mohammad Zai Khan, committee chair, expressed deep concern over these pressing matters.

The Pakistan Telecommunication Authority (PTA) chairman informed the committee that Jazz, a major telecom provider, had implemented a 15 percent tariff hike quarterly, permissible under existing regulations. He revealed that while Jazz and Telenor reported profits in 2024, Zong and Ufone incurred losses.

Concerns regarding subpar telecom services were also raised. A spectrum allocation dispute, unresolved since 1995, was identified as a significant impediment to industry expansion. The committee summoned key stakeholders, including the Attorney General, Frequency Allocation Board, PEMRA, and FBR, to the next session to propose remedies.

Senator Nadeem Ahmed Bhutto highlighted the lack of mobile networks in rural Sindh during extended power outages, citing insufficient backup power systems at telecom facilities. Other committee participants echoed these concerns, urging the PTA to guarantee consistent service in underserved regions.

The committee criticized the Federal Board of Revenue (FBR) for imposing substantial taxes on small online ventures. Chairperson Khan emphasized the importance of nurturing Pakistan’s burgeoning digital economy, primarily driven by young entrepreneurs, through supportive policies rather than burdensome taxation.

An Egyptian lawmaker’s social media assertion about her appointment to Pakistan’s AI advisory panel also came under scrutiny. The IT Ministry debunked the claim as fabricated and was instructed to investigate the incident.

Universal Service Fund (USF) officials reported 4,206 operational sites nationwide, including 22 in Gwadar. However, committee members identified several areas lacking adequate connectivity and directed the USF to expand its reach for comprehensive nationwide coverage.

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