The Federal Minister for ITT told reporters that the ministry had written four to six letters to the Ministry of Finance requesting the release of Rs 61.3 billion.
The Ministry of Information Technology and Telecom (ITT) has requested that Rs 61.3 billion in stalled Universal Service Funds (USF) funds be released, warning that if funds are not returned, the implementation of new schemes may be halted.
In 2013-14, the Ministry of Finance borrowed Rs 67 billion from USF to pay off the circular debt monster, with Rs 5.8 billion returned to USF in 2016. However, the remaining amount of USF funds has been stalled for several years and has never been returned to the USF or Ministry of IT despite several reminders.
The Federal Minister for Information Technology and Telecom told reporters on Thursday that the ministry had written four to six letters to the Ministry of Finance requesting the release of Rs 61.3 billion. “We have given the Ministry of Finance the option of returning the funds in reasonable instalments,” he added.
He stated that under the USF, the government launched 25 projects worth Rs 35 billion to expand telecom service footprints in underserved and unserved areas.
On the other hand, telecom operators claimed that, as a result of the dollar liquidity crisis, LCs were not being opened for telecom machinery and equipment, which had become a major impediment to project execution under USF in far-flung areas of Pakistan.
The minister also stated that it was being considered to give telecom operators fiscal space, such as by suspending USF and Ignite contributions or reducing them by 1% from the current 2%, if the Ministry of Finance released funds in instalments in the future.
The minister stated that the government was making all efforts to launch 5G in at least major cities by June 2023, as other countries were moving towards 5.5 G and 6 G, and that if this goal was not met, the country would be left behind.
He stated that the government would appoint a new chairman of the Pakistan Telecommunication Authority (PTA) based on merit in order to create a business-friendly environment to make 5G a success. “If we can’t make the spectrum free, the price should be reduced,” he added.
The ministry asked for an additional Rs790 million grant for the Pakistan Software Export Board (PSEB), a 5% cash award for the IT sector, and a special award of 1% of total IT exports for the PSEB.
The federal minister declared 2022 a success for IT and telecom, stating that IT exports stood at $2.39 billion in the first 11 months of the current fiscal year (January–November), compared to $2.19 billion in 2021.
The minister stated that for the first time, the country began exporting mobile handsets and that well-known brands such as Samsung and Nokia began manufacturing mobile handsets in the country. He stated that investment in the telecom sector increased by 6.6% to Rs. 794 billion.
He concluded by expressing hope that 2023 will be a prosperous year for the IT and telecom sectors, with increased exports, a 5G auction, and the timely completion of connectivity-related projects in the country.