According to the IT and Telecom Minister, the restrictions imposed on the letters of credit (LCs) facility for the telecom sector are insufficient.
According to the IT and Telecom Minister, the restrictions imposed on the letters of credit (LCs) facility for the telecom sector are insufficient. “There are fears of IT service disruptions in many areas without much-needed technological parts,” the minister warned while presiding over the 44th Policy Committee meeting of the Universal Service Fund (USF).
He claimed that limited LC permissions were impeding the import of mobile networking upgrading equipment, hence service disruptions to be seen in the overall performance of the IT and telecom sector.
“Telecom companies were having difficulty importing parts and equipment due to the limited permission of LCs, which may also result in a delay in projects for the provision of 4G services in remote areas of the country,” the minister explained.
The authorities informed the meeting that telcos, IT firms, and their backend equipment suppliers had complained that they were unable to import even the most basic hardware required to run systems. The minister promised to speak with the Ministry of Finance again and inform them of the critical situation.
The meeting approved the release of a development fund of Rs 5 billion for the second and third quarters from the Rs 32.13 billion budgeted for the Universal Service Fund (USF) for 2022-2023, while Rs 8.25 billion had already been released for the first quarter.
It also approved quarterly releases to Ignite Co in accordance with the approved budget. Meanwhile, the Ministry of Information and Telecommunications has begun implementing the one room, one light policy in order to save electricity. In this regard, a notification has been issued.
Mohsin Mushtaq, Additional Secretary (In Charge), Ministry of IT, Omer Malik, CEO USF Haaris Mahmood Chaudhary, CEO Ignite Asim Shahryar, and others were present at the meeting. Previously, USF Chief Executive Officer Haaris Mahmood Chaudhary briefed the chair on current projects.