Islamabad, JULY29: Concerns regarding the Ministry of IT and Telecom’s (MoIT&T) rightsizing have been voiced by telecom providers.In a letter to Shaza Fatima Khawaja, Minister of State for IT and Telecom, the Telecom Operators Association expressed their concerns and emphasized the ministry’s critical role in establishing telecom sector policy. They contend that the telecom and IT industries, as well as Digital Pakistan, would suffer if the ministry was dissolved.
Pakistan has international obligations to uphold autonomous policy-making, regulation, and operations as a signatory to the Reference Paper on Telecommunications and the GATS agreement under the WTO. To guarantee adherence to these promises, the telecoms industry needs its own specialized policy-making body.
The letter claims that companies in the IT and telecom industries receive critical regulatory guidance, support, and coordination from the MoIT&T. Dissolution could cause operational problems for businesses, making strategic planning and compliance more difficult.
As per the correspondence, MoIT&T plays a crucial part in the sector’s governance framework, adhering to worldwide industry standards and Pakistan’s WTO obligations. The ministry has been in charge of policy development and execution since 2000, which has resulted in the telecom industry experiencing significant expansion.
$28 billion in total investment, of which $11 billion is foreign direct investment, has been drawn to the policy environment that the ministry has fostered. Because of this, 195 million telecom users are being served, translating to a teledensity of more than 81% of the population. Additionally, through different taxes and fees, these users contribute almost $27 billion to the national coffers.
The group emphasizes that effective management of the IT and telecommunications sectors requires specific domain knowledge. The possible breakup of the ministry might cause this expertise to be lost, which would make it more difficult to solve problems unique to the industry.
Since combining these functions into another ministry could dilute this concentration and result in slower reaction times and less effective policy implementation, a separate ministry would guarantee that the special demands of these sectors are fulfilled with focused attention.
The letter goes on to say that the MoIT&T has played a key role in establishing a stable regulatory framework that encourages investment, growth, and innovation. Long-term strategic plans and ongoing initiatives could be disrupted by policy and regulatory uncertainties brought about by the ministry’s dissolution. Investors favor industries with a well-defined governance framework and a stable policy environment; MoIT&T’s existence indicates this commitment to the IT and telecom industries.
For many stakeholders, including companies, consumers, and trade associations, the ministry acts as a single point of contact. The breakup can cause misunderstandings and lower participation, which would affect teamwork and feedback systems that are crucial for industry advancement.
Furthermore, Pakistan’s innovation and digital transformation have benefited greatly from the MoIT&T’s leadership. World-class organizations like the USF and R&D Funds have been established as a result of the ministry’s policy environment, which has effectively encouraged innovation and expanded telecom services to underserved areas. It is necessary to maintain policy attention on these programs instead of disbanding them.
The association further notes that the Pakistan Muslim League-Nawaz (PML-N) promised in its manifesto to expand the ministry’s purview and transform it into a more powerful Ministry of Digital Economy. The letter further stated that dissolving the MoIT&T would go against this pledge and might impede the achievement of this objective.
According to the Telecom Operators Association, maintaining a specialized ministry is necessary to guarantee economic growth, stakeholder involvement, policy stability, sector-specific expertise, and strategic oversight.The MoIT&T’s dissolution would result in serious problems and interruptions that would impact not just the telecom and IT sectors but also the larger Digital Pakistan project. To maintain the policy-making emphasis essential to the viability and expansion of Pakistan’s IT and telecoms sectors, it is imperative that these aspects be carefully taken into account.
