ISLAMABAD/KARACHI: The Pakistan Telecommunication Authority has informed the country's biggest mobile network, Jazz, and second-largest telecoms firm, Telenor, that their licences will stand expired on August 21 if the companies do not agree to pay a renewal fee of $450 million as per the PTA’s terms and conditions, PTA and Jazz officials said this week.
Pakistan’s telecoms market was deregulated in 2004 and foreign firms such as Jazz have invested heavily. But now the company fears the new renewal fee, which it says goes against an agreement struck in 2004, will pose a significant risk to the connectivity of millions of Pakistanis and jeopardize a growing digital economy.
According to PTA figures as of April 2019, Pakistan has 161 million cellular subscribers, with 59.2 million using Jazz and 44.8 million on Telenor.
“The decision by PTA to expire the licences of operators on August 21, 2019, if not renewed on their terms, is indeed concerning,” Ali Naseer, Chief Corporate and Enterprise Officer at Jazz, told Arab News in an interview this week. “This can potentially disrupt services for millions of Pakistani cell phone users.”
A Telenor spokesman did not respond to repeated calls for comment but a PTA directive to Telenor dated July 22 and seen by Arab News orders the company to pay the $450 million renewal fee by the August 21 deadline and on the PTA’s terms, or risk discontinuation of operations.
Mobile technology is the primary means of communication for millions of Pakistanis. Recent intelligence research by the GSM Association, a trade body that represents the interests of mobile network operators worldwide, estimated the total economic impact of mobiles on Pakistan’s economy was $17 billion, or 5.4% of GDP.
In 2017, total direct tax and fee payments by the mobile sector were estimated at $950 million, 29% of operator revenue, and the wider mobile ecosystem contributed a total of $1.9 billion in direct and indirect taxes in 2018, as per the GSM Association. A tax directory issued by the Federal Board of Revenue for tax year 2017 listed Telenor and Jazz among the country's top corporate taxpayers.
Pakistan’s government is currently struggling to lift revenues, cut ballooning public debt and raise foreign reserves. A recently signed loan agreement with the International Monetary Fund is aimed at shoring up fragile public finances and strengthening a slowing economy.
“It’s important that Pakistan doesn’t ... place gaining inflated revenues from spectrum licences above the connectivity of its citizens,” Brett Tarnutzer, Head of Spectrum at GSMA, said. “Spectrum prices and taxes should be set at a sufficiently low level that allows operators to deliver affordable services and deploy mobile broadband widely.”
“NEGLIGENCE AND INCOMPETENCE”
The licences of both Jazz and Telenor were originally set to expire on 25 May. In early May, the two companies took PTA to court after the Authority asked them to pay a $450 million renewal fee, more than double the dollar price at which the operators originally acquired licences at auction in 2004.
At the heart of the court challenge between the telecom firms and the Pakistan government is a 2015 telecommunications policy that replaced a 2004 version and which Jazz and Telenor say outlined the terms and conditions for auctions of new spectrums but did not lay down any guidelines regarding renewals.
Globally, licence renewal terms are to be communicated to operators 18 months before a licence is due to expire. According to PTA documents seen by Arab News, the Authority came up with new terms on May 9, a little over two weeks before the May 25 deadline and after Jazz and Telenor had taken the matter to court.
“That is the first example of negligence or incompetence because now, in 2019, when the renewals were due, we found ourselves in a situation where there is no framework,” Naseer said. “Had they [government] come out with a reasonable policy, we would have accepted that because we want predictability. Jazz is now 25 years in the market, we are one of the largest foreign direct investors in the country, we’re not going anywhere in a hurry. We are beholden to the country and we want to work and progress.”
Jazz also says that it communicated its intention to renew its licence 30 months prior to the May 25 expiry deadline, as specified in the licence terms. PTA was then required to inform the operators about the renewal terms and conditions within three months of receiving their intent for renewal, which the Authority did not. In the absence of a new set of guidelines formulated and communicated within the deadline as set by the law and the licence terms, Jazz and Telenor argued in court that the 2004 licence terms and conditions should continue to apply to the latest renewal.
After several hearings, the Islamabad High Court remanded the case back to PTA last month, asking the Authority to review the terms of renewal with a “fresh eye.” After quasi-judicial hearings for both Jazz and Telenor, PTA concluded on July 22 that the telecom operators would have to pay the set price of $450 million by August 21.
PTA directives to Jazz and Telenor seen by Arab News said payment terms for the $450 million renewal fee would be 100% upfront or 50% upfront with the remaining 50% paid in five equal annual installments on the London Interbank Offered Rate, plus 3%. The payment could be made in USD or its equivalent in Pakistani rupees, calculated at the market exchange rate at the time of payment.
“We are disappointed that PTA has not been able to see our point of view on these renewals,” Naseer said. “We are committed to endeavour towards improved connectivity and an enabling digital environment in Pakistan.”
A PTA spokesman declined repeated requests for an interview and only referred to public documents about the licences.
“EVALUATING ALL OPTIONS”
The decision by Pakistan’s cash-strapped government to set the new renewal fee in US dollars and not in local rupee currency, which has lost about 40 percent against the dollar in the last 20 months, is another major sticking point for the mobile operators.
The 2004 auction for a 15-year licence cost $291 million, equivalent to Rs17 billion at the 2004 exchange rate. But with the rupee plunging to record lows against the dollar, Jazz now faces paying Rs67 billion for $450 million, a 265% increase compared to what Jazz paid in 2004.
Naseer said the company earned and charged customers in local currency, not dollars, and thus setting the renewal fee in dollars was “unsound.”
“We believe in Pakistan and if word gets out that existing investors are being treated like this it makes it very difficult for us to say ‘Pakistan is open for business’,” Naseer said.
Jazz says it is now evaluating the option of renewing its licence at the PTA’s asking price, letting it expire or filing an appeal with the Islamabad High Court before August 22. Telenor’s options are similar.
“Honestly, at this stage we are evaluating all our options,” Naseer said. “Nothing has been ruled out.”
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor
- Pakistan’s biggest and second-largest telecom firms have taken the government to court over the renewal process and price
- Companies believe licence price hike goes against a 2004 agreement and have challenged the PTA for setting the price in USD
Pakistan eyes enhanced trade and connectivity with Belarus amid investment push
- Belarus President Aleksandr Lukashenko is in Pakistan on three-day visit for investment, trade talks
- Islamabad is pushing for foreign investment from allies in a bid to shore up $350 billion economy
ISLAMABAD: Pakistan Privatization and Communications Minister Abdul Aleem Khan stressed launching direct flights to Belarus and enhancing trade with the eastern European country, state-run media reported this week, as its president arrived in Islamabad for a three-day trip to hold talks on bilateral trade and investment.
Belarus President Aleksandr Lukashenko arrived in Pakistan on Monday following the arrival of his 68-member delegation, as Islamabad pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the IMF.
Khan met Belarusian Transport Minister Alexei Lyakhnovich with senior communication in the presence of sector officials from both countries on Monday to discuss the importance of enhancing connectivity through roads and railways, the Associated Press of Pakistan said.
“Federal Minister for Communications, Privatization and Board of Investment Abdul Aleem Khan on Monday emphasized Pakistan’s commitment to enhancing connectivity through the launch of direct flights to Moscow and Belarus, alongside the development of trade corridors linking China, Afghanistan, Central Asia, and Belarus,” the APP reported.
The Belarusian transport minister described cross-border trade as “pivotal” for strengthening the economy and promoting bilateral relations, adding it was a significant step toward collaboration between both countries.
The pending construction of different motorways and highways also came under discussion with both sides agreeing to take steps in this regard, APP said.
Emphasizing the communication sector’s importance, Khan said Pakistan wanted a trade corridor to Central Asia along the Karakoram Highway and China-Pakistan Economic Corridor lines to promote business activities.
“We want to further enhance G2G and B2B activities with Belarus in the future for which both the countries will make serious efforts,” Khan said.
“Like Azerbaijan and Turkiye, we also want to make Belarus an investment partner with our country as Pakistan is rich in natural resources and blessings of Allah Almighty while positive results can be achieved with our skilled workforce.”
On Tuesday, Lukashenko arrived at the Prime Minister House where he was welcomed by PM Shehbaz Sharif and presented with a guard of honor.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
The First Pakistan-Belarus Joint Economic Commission (JEC) was held in 2015 in which the two countries agreed to initiate joint ventures in the textile, pharmaceutical and lighting solution industries and share technological expertise.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.
After humiliating loss, Pakistan face Zimbabwe in second ODI today
- Zimbabwe stunned Pakistan by 80-run win on Duckworth-Lewis Stern (DLS) method in first ODI
- Skipper Mohammad Rizwan’s side will play three ODIs and three T20Is against Zimbabwe
ISLAMABAD: Pakistan will take on hosts Zimbabwe in the second ODI today, Tuesday, at the Queens Sports Club in Bulawayo, after reeling from an embarrassing defeat in the first match last week.
All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method on Sunday against a new-look Pakistan team.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.
“The second One-Day International of three match series between Pakistan and Zimbabwe will be played in Bulawayo on Tuesday,” state broadcaster Radio Pakistan reported.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
In the 15-member squad Arafat Minhas, Babar Azam, Naseem Shah and Shaheen Shah Afridi have been replaced with the uncapped duo of Abrar Ahmed and Ahmed Daniyal along with pacer Shahnawaz Dahani and Tayyab Tahir.
The match is scheduled to begin at 12:30 p.m. Pakistan Standard Time.
World Economic Forum says Pakistan now world’s sixth-largest solar market
- Pakistan’s “rapid adoption” of solar energy provides valuable lessons for emerging markets, says WEF
- Says declining solar panel prices, skyrocketing electricity tariffs reasons for Pakistan pursuing solar energy
ISLAMABAD: Pakistan is now the sixth-largest solar market in the world and its “rapid adoption” of solar energy provides valuable lessons for emerging markets, a World Economic Forum report said this week as Islamabad tries to dodge rising fuel prices through renewable energy resources.
Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, leading to blackouts and high electricity costs.
Experts say Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. According to the World Bank, utilizing just 0.071 percent of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand.
According to the National Electric Power Regulatory Authority, currently, only 5.4 percent of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 percent of the fuel mix, followed by hydropower at 25 percent.
“The country is now the world’s sixth-largest solar market,” WEF said in its report published on Monday. “Declining solar panel prices, coupled with skyrocketing grid electricity tariffs that have increased by 155 percent over three years, are fueling a rush in renewable energy adoption in Pakistan, with solar power leading the way.”
The report highlighted that Pakistan’s move to adopt solar energy was driven by external factors such as China’s overproduction of solar panels, which had lowered the costs for Pakistan, making the country the third-largest destination for Chinese solar exports.
“Industrial, agricultural and residential sectors have embraced solar, with imported Chinese modules totaling 13 gigawatts (GW) in the first half of the year, and forecasts reaching 22GW by year-end,” the report said.
The WEF said the inability of state-owned energy providers to provide a stable supply and the government’s inconsistent energy policy characterized by ” inefficiencies in production, pricing and regulations” has deepened Pakistan’s energy crisis, aiding in the usage of solar energy.
“Grid electricity demand dropped by more than 10 percent in the past fiscal year as inflated tariffs burden consumers with covering inefficiencies,” the report added. “This trend has sparked a wave of solar adoption among industrial, commercial and private users who can afford self-generation.”
Supportive policies like offering credit for solar in off-grid areas and unbundling customer categories can also boost renewable energy adoption, it said.
“Pakistan’s journey underscores the importance of balancing policy innovation with market adaptation to drive sustainable and equitable energy solutions,” the WEF report concluded.
Pakistan reaffirms unwavering support for Palestine, demands unconditional ceasefire in Gaza
- Shehbaz Sharif’s message comes as world marks International Day of Solidarity with Palestinian People
- Calls on international community to act “swiftly and decisively” to put a halt to Israel’s “atrocities” in Gaza
ISLAMABAD: Prime Minister Shehbaz Sharif expressed Pakistan’s unwavering support for the people of Palestine on Tuesday and demanded an unconditional ceasefire in Gaza, as the world marks the International Day of Solidarity with Palestinian People today.
The International Day of Solidarity with Palestinian People is marked every year on Nov. 29 to express support for the people of Palestine facing occupation at the hands of Israel. This year, the day is being observed on Nov. 26.
Pakistan’s message of support for Palestine comes amid heightened tensions in the Middle East. Israel has killed over 44,000 people since Oct. 7, 2023 after Hamas launched a surprise attack on the Jewish state the same day. Israel has also launched military operations against Lebanon and exchanged missile attacks with Iran over the past few months.
“International Day of Solidarity with the Palestinian People is being observed on Tuesday to express solidarity and support with the oppressed people of Palestine,” state broadcaster Radio Pakistan said.
“In his message on the occasion, Prime Minister Shehbaz Sharif reaffirmed the unwavering support of the people and Government of Pakistan for the just cause of Palestine and the inalienable right of the Palestinian people to self-determination.”
Sharif said Pakistan calls on the international community to “act swiftly and decisively, to impose an immediate halt to Israel’s atrocities.”
He condemned Israel’s attacks on Palestinian civilians, hospitals, schools and critical infrastructure in Gaza.
“He said Pakistan further calls for an immediate and unconditional ceasefire in Gaza and stresses the urgency of ensuring unhindered humanitarian assistance to the Palestinian people,” the state broadcaster said.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
Since the beginning of the war in October last year, Pakistan has repeatedly called for a ceasefire in Gaza and raised the issue at the United Nations, the Organization of Islamic Cooperation (OIC) and other international forums, urging an end to Israeli military actions.
Three Rangers, two cops killed in clashes as Imran Khan supporters enter Islamabad — state media
- Army deployed in Pakistan’s capital with instructions to shoot miscreants on site, says state media
- Interior minister warns Imran Khan’s party against crossing any “red line” as they reach capital
ISLAMABAD: Three Rangers personnel and two policemen have been killed in clashes with Imran Khan’s supporters in Islamabad, state-run media reported on Tuesday, as thousands of protesters entered Pakistan’s capital demanding the jailed former prime minister’s release from prison.
Thousands of rallygoers, who had reached the edges of Islamabad on Monday night in protest caravans that set out from various parts of the country last week, entered Islamabad where they reportedly clashed with law enforcers on the city’s Srinagar Highway. Khan’s party wrote on X that its caravan of supporters had reached Zero Point interchange in the capital.
Supporters of Khan’s Pakistan Tehreek-e-Insaf (PTI) party set out despite the government refusing to grant the PTI permission to enter Islamabad for a sit-in. Last week, the district administration also imposed a two-month ban on public gatherings in the capital, citing security challenges and inconvenience to the public.
Khan’s PTI is protesting for the release of political prisoners, including Khan, among other demands. State broadcaster Radio Pakistan said the government had invoked Article 245 of the constitution to deploy the army in the capital “to deal with the miscreants with an iron hand.”
“According to security sources, miscreants rammed a vehicle into Rangers personnel resulting in the martyrdom of three Rangers officials during PTI’s protest on Srinagar Highway in Islamabad,” Radio Pakistan said.
“Five other Rangers personnel and several police officials sustained severe injuries.”
The report said that Khan supporters pelted stones on Rangers personnel and carried out indiscriminate firing on security personnel at the Chungi no. 26 area in Islamabad’s twin city of Rawalpindi.
It said two police officers were also killed in clashes.
The PTI, however, rejected the allegations its supporters had killed the Rangers personnel. The party quoted an eyewitness named Safeer Ali, saying that he was the brother of “one of the five victims run over by vehicles belonging to the police and paramilitary forces near Islamabad’s checkpoint number 26.”
“He watched as fleeing police and Rangers deliberately ran people over as they sped away,” the party said on social media platform X.
It said that other media reports had also indicated that the Rangers personnel killed and injured were “accidentally crushed” under the tires of vehicles belonging to security forces.
ARMY DEPLOYED IN ISLAMABAD
Separately, Pakistan’s government invoked Article 245 of the constitution to bring in the army in Islamabad as the unrest grew.
“Under Article 245, the Pakistan Army has been called in, and orders have been issued to deal with the miscreants with an iron hand,” Radio Pakistan said.
“Clear orders have also been issued to shoot miscreants and troublemakers on sight.”
Meanwhile, the PTI alleged on social media platform X that law enforcers had opened fire on its unarmed supporters in the capital. It said that the party’s protest caravan in the city’s G-11 area was being heavily teargassed.
“The fake government is ready to go to any extent to maintain its illegal occupation,” the PTI said.
Islamabad has remained under a security lockdown since Sunday, with authorities closing all schools in the capital and the adjacent garrison city of Rawalpindi, while Internet and WhatsApp messaging services have also slowed.
All routes connecting Islamabad and Rawalpindi have been completely shut since Sunday, as are highways and roads from other cities leading to the federal capital.
Inspector General (IG) Punjab, Dr. Usman Anwar, said on Monday that 119 cops had been injured, some of them due to gunfire by miscreants.
Speaking to reporters late Monday night, Interior Minister Mohsin Naqvi said the government had offered the PTI a designated place at Sangjiani area in Islamabad to protest.
“A head of state is in Islamabad, it is a sensitive [time], we do not want to go to an extreme step at D-Chowk,” Naqvi said, referring to the Belarusian president, who is in Islamabad with a high-level delegation.
“But do not cross the red line which forces us to go to that extreme step.”
US CALLS FOR PEACEFUL DEMONSTRATIONS
US State Department Spokesperson Matthew Miller reacted to ongoing protests in Islamabad, saying that Washington supports freedom of expression and the right to peaceful assembly in every country.
“We call on protesters to demonstrate peacefully and refrain from violence, and at the same time, we call on Pakistani authorities to respect human rights and fundamental freedoms, and to ensure respect for Pakistan’s laws and constitution, as they work to maintain law and order,” the Miller said.
He declined to comment when a reporter asked him whether it looked like Pakistan’s future was heading in the same direction as that of Bangladesh, where protests this year toppled Sheikh Hasina’s government and forced her into exile.
‘TILL MY LAST BREATH’
The PTI march started on Sunday but could not reach Islamabad the same day as shipping containers placed by the government on key points on major highways slowed the pace of the caravans. The PTI says its final destination is D-Chowk, a high-security area in the capital’s Red Zone that houses key government buildings and is a popular site for protests.
The largest PTI protest caravan began its journey from Peshawar, the provincial capital of the Khyber Pakhtunkhwa (KP) province where Khan’s party is in power. It is being led by KP Chief Minister Ali Amin Gandapur and Khan’s wife Bushra Khan, who was released on bail in October after nearly nine months in detention.
Khan has been in jail since August last year and faces a slew of charges he says are politically motivated.
“Until Khan does not return to us, we will not end this march,” Bushra said to supporters from atop the protest caravan on Monday afternoon.
“I will stand there till my last breath, you people have to stand by me. I will keep standing even if nobody does because this does not concern just my husband but the country and its leader.”
Islamabad police has confirmed over 400 arrests related to the protest in the past few days, saying the detainees were being held in different police stations. The PTI said over 3,500 of its leaders and supporters had been arrested in connection to the protests.
The PTI’s march has coincided with a visit to Islamabad by Belarusian President Aleksandr Lukashenko and a 68-member delegation to discuss investment deals. The government has accused the PTI of trying to sabotage the foreign visit in a bid to destabilize its economic recovery efforts.
The PTI rejected this criticism, saying its protest had been called before the announcement of the Belarusian delegation’s visit.
