- PTA report discloses that there are 196 million telecom subscribers.
- CMOs register maximum investment of $431m in 2023-24: report.
- Report shows deployment of 5G requires substantial investment.
ISLAMABAD: Pakistan’s telecom sector saw a decline of over 20% in Foreign Direct Investment (FDI), which totalled $46 million in the fiscal year 2023-24, compared to $58 million in the previous fiscal year, 2022-23, The News reported on Tuesday.
The FDI inflow was lower than the outflow, with investment inflows amounting to $46 million, while the outflow of dollars stood at $90 million in the fiscal year 2023-24, according to the Pakistan Telecommunication Authority’s (PTA) annual report released on Monday. In 2022-23, FDI inflows were $58 million, while the outflow was approximately $280 million.
The report also revealed that there are 196 million telecom subscribers in total, with 143 million broadband subscribers, 193.4 million mobile subscribers, and 2.6 million fixed-line subscribers.
Moreover, the number of mobile broadband subscribers reached 138.7 million and the number of fixed broadband subscribers is 3.6 million. This sector’s investment continues to decline as it stood at $765 million in 2023-24 compared to $770 million in 2022-23. Earlier in 2021-22, the investment was $1.657 billion, $1.214 billion in 2020-21 and $1.140 billion in 2019-20.
The cellular mobile operators (CMOs) registered a maximum investment of $431 million in 2023-24 compared to $396 million in 2022-23. Over the last five years, total investments in Pakistan’s telecom sector have surpassed the $3.63 billion mark.
Its revenues touched Rs955 billion in fiscal year 2023-24, attracting $765 million in investments and contributing Rs335 billion to the national exchequer. The Telecom sector’s contribution to the exchequer was Rs341 billion in 2022-23. The Mobile Average Revenue per User (ARPU) rose to Rs302 per month in April-June 2024.
Arpu increased to Rs276 per month in fiscal year 2023-24 up from Rs229 in the preceding year. However, the APRU was not shown in dollar terms which had declined compared to other comparable countries.
Jazz and Ufone particularly stood out, achieving significant Arpu growth rates of Rs327 and Rs280 in 2023-24 respectively compared to Rs254 and Rs233 in the preceding year. Telenor and Zong also experienced growth, with their Arpu increasing Rs214 and Rs258 respectively. In April-June 2024, Jazz’s Arpu surpassed Rs369 per month followed by Ufone’s Rs304 during this period.
The report shows that the deployment of 5G requires a substantial investment in terms of upgrading existing networks and expanding infrastructure with the installation of small cells, advanced antennas, and extensive fibre optic backhaul. This imposes a considerable financial burden on telecom operators as securing the required capital can be a challenge for them, particularly in a competitive market with price-sensitive consumers.
Pakistan’s cyber security landscape is rapidly evolving, with a marked increase in threats targeting critical infrastructure, financial institutions, and government entities. The PTA has warned that challenges such as limited resources, shortage of skilled professionals, and inadequate public-private collaborations continue to impede progress.
The global nature of cyber threats has necessitated the prioritisation of international cooperation to strengthen cyber security defences, and while Pakistan is proactively establishing linkages and building synergies, there is still room for strategic actions to mitigate the entire spectrum of threats endangering the digital ecosystem.
Pakistan experienced a significant surge in cyber-attacks from July 2023 to June 2024. They included malware, followed by phishing, Distributed Denial-of-Service, ransomware, and insider threats, among others. Advanced Persistent Threats (APTs) represent the top tier of threat actors, distinguished by their advanced capabilities, sophisticated attack techniques, and continuous evolution.
These cyber criminals engage in high-profile attacks involving novel tools and intricate techniques that surpass the capabilities of other cyber-criminal groups.
Geopolitical factors significantly influence the tactics and targets of APT actors. The major APTs that targeted Pakistan during 2023 were Gamaredon, DoNot, Bitter, Kimsuky, Lazarus, and SideWinder. Their key targets included Internet backbone infrastructures, healthcare entities, and organisations affiliated with the government.
