Overview of Challenges in Pakistan’s Telecom Sector
In a recent session of the National Assembly, Minister of State for Information Technology and Telecommunication, Shaza Fatima Khawaja, publicly acknowledged that Pakistan’s internet services had been facing several challenges. Despite this, the minister reassured the house that internet services, including VPNs and popular apps like WhatsApp, were fully operational in the country. Her remarks were in response to concerns raised by PPP lawmaker Shazia Marri regarding the slow internet speeds and the suspension of VPN services, which have become a critical tool for many users.
Admission of Lack of Telecom Infrastructure Investment
While responding to the criticism, Khawaja admitted a glaring issue: over the past three years, there had been no significant investment in Pakistan’s telecom infrastructure. This admission came as a surprise to many, as the country’s telecom sector plays a crucial role in economic growth and connectivity. The minister pointed fingers at the previous PTI government for this failure, citing a lack of foreign direct investment (FDI) in the sector during the period of economic instability.
Economic Factors Behind Lack of Investment
The IT minister elaborated on the reasons for the telecom sector’s stagnation, mentioning the fear of a default and the IMF’s influence over Pakistan’s economic policies. She claimed that during the tenure of the previous government in 2022, the country was on the brink of a financial collapse, which made it difficult for the government to import essential telecom infrastructure. This shortage of essential components, combined with economic uncertainty, led to a delay in upgrading Pakistan’s telecom network.
“At that time, no one was ready to open Letters of Credit (LCs), and as a result, no imports were allowed. Since telecom infrastructure is largely import-based, we could not make investments,” Khawaja explained.
However, she expressed optimism, highlighting recent improvements in Pakistan’s macroeconomic indicators, such as reduced inflation and a stable currency. She believes these improvements would pave the way for future investments in telecom infrastructure.
Positive Signs for the Future
Khawaja pointed out that the IT services sector had shown a 28% increase in exports, reaching approximately $1.86 billion in the first half of the current financial year. This growth in remittances is a positive sign that the internet infrastructure, despite its current challenges, is gradually improving. She also noted that the availability of WhatsApp and VPN services, which had previously been under scrutiny, was now fully functional.
The minister further assured the House that the Pakistan Telecommunication Authority (PTA) had been addressing users’ complaints 24/7 through a dedicated service center, where technicians are dispatched to resolve issues as quickly as possible.
Submarine Cable Projects and Future Plans
In terms of infrastructure upgrades, Khawaja revealed that Pakistan currently has seven submarine cables, with one of them having completed its lifespan. However, there are plans to bring in new cables to improve the internet experience. The newly launched Africa2 cable, which will land in Pakistan in the coming months, is expected to significantly enhance the country’s internet connectivity. Additionally, the Pakistan-China optic-fiber cable has already been operationalized, which will enable data exchange between Pakistan and China, further improving internet service delivery.
Pakistan is also looking to connect its submarine cables to Central Asian countries through the Wakhan Corridor. These efforts, the minister said, would help in reducing internet congestion and improving overall network efficiency.
The Role of the Opposition in Disrupting Proceedings
While the minister was addressing the issue of telecom infrastructure, opposition members, particularly from the PTI, continued their protest. They raised slogans, thumped desks, and disrupted the session repeatedly. This unrest led to the adjournment of the House due to a lack of quorum, preventing the completion of the Question Hour.
The opposition’s behavior was condemned by Speaker Ayaz Sadiq, who expressed his dissatisfaction with the continuous disruptions. He reminded the opposition that it had been mutually agreed that quorum issues would not be raised during the Question Hour or on private members’ days. Despite this agreement, PTI members raised the issue of quorum, leading to the adjournment of the session.
What Lies Ahead for Pakistan’s Telecom Sector?
As Pakistan looks to improve its telecom infrastructure, there are both challenges and opportunities ahead. While the lack of investment in recent years has hindered the growth of the telecom sector, the improvements in Pakistan’s macroeconomic situation, alongside new infrastructure projects like the Africa2 cable and the Pakistan-China optic-fiber link, offer a glimpse of hope.
FAQs
1. Why has there been no investment in telecom infrastructure in Pakistan over the past three years?
- The lack of investment in telecom infrastructure was primarily due to the fear of a financial default and the IMF’s constraints on the country’s economic policies. During 2022, Pakistan was facing significant economic instability, which limited the government’s ability to import telecom components.
2. What measures are being taken to improve Pakistan’s internet connectivity?
- The government is focusing on several initiatives, including the operationalization of the Africa2 submarine cable, the Pakistan-China optic-fiber cable, and connecting to Central Asian countries through the Wakhan Corridor. These measures are expected to significantly enhance internet connectivity in the country.
3. Are VPNs and WhatsApp functional in Pakistan now?
- Yes, according to the Minister of IT, VPNs and WhatsApp services are currently fully operational in Pakistan, and issues with their usage have largely been resolved.
4. How much has Pakistan’s IT export sector grown recently?
- Pakistan’s IT services export remittances have grown by 28%, reaching approximately $1.86 billion during the first six months of the current financial year.
5. Why is the opposition protesting in the National Assembly?
- The opposition, particularly PTI members, have been protesting due to dissatisfaction with the government’s handling of various issues, including telecom infrastructure, and have disrupted parliamentary proceedings by raising issues of quorum.
