ISLAMABAD – Government of Pakistan received over Rs 107 billion from thetelecom operators as licence renewal fees.
The government of Pakistan has received $238.6 million (Rs. 37.16 billion)from China Mobile (CM Pak) as a license renewal fee – a non-tax revenue.
The license renewal proceeds have been deposited in Federal ConsolidatedFund (FCF), said Pakistan Telecommunication Authority (PTA).
Earlier, Telenor Pakistan and Jazz deposited $224.6 million (Rs 35.262billion) separately (half of the amount as per court direction) as theirlicense renewal fee in September 2019.
The recent deposits from the three cellular mobile operators againstlicense renewal fee sum up to over Rs. 107 billion which will providesupport to the national exchequer as well as the economy. This also showsthe positive contribution by the telecom sector and efforts of PTA, statedPTA on Twitter.
The government had approved the renewal of licenses of two mobileoperators, ie, Jazz and Telenor Pakistan at around $450 million each whilethe third operator – CM Pak had to pay $470 million.
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Due to stay orders issued by the Islamabad High Court, the collection ofthe renewal fee from two telecom companies, which was budgeted in previousfiscal year, had been delayed.Background
Cellular licenses were issued by the PTA to two new cellular mobileoperators i.e. M/s Telenor Pakistan and M/s Warid Telecom on May 26, 2004for a period of 15 years, under the Mobile Cellular Policy, 2004, onpayment of $291 million after an auction.
The cellular license of M/s Paktel Limited, now China Mobile Pakistan(Zong), was also renewed by PTA under the 2004 Policy for a period of 15years on payment of $291 million. These licenses were due for renewal onMay 25, 2019 and October 22, 2019 respectively. In 2014, the government ofPakistan renewed the license of Ufone at $291 million.
On August 21, Islamabad High Court (IHC) directed Telenor and Jazz fordepositing 50 percent of license renewal fee i.e. around Rs 36 billion eachin two weeks as a guarantee.
