Islamabad, Dec 19: Pakistan’s telecom sector witnessed a significant decline of over 20% in Foreign Direct Investment (FDI) during the fiscal year 2023-24, with inflows amounting to $46 million compared to $58 million in 2022-23.
The Pakistan Telecommunication Authority’s (PTA) annual report, released on Monday, revealed that outflows of dollars exceeded inflows, with $90 million flowing out against $46 million invested in 2023-24. In 2022-23, inflows totaled $58 million, while outflows reached $280 million.
The report highlighted 196 million telecom subscribers, including 143 million broadband users, 193.4 million mobile subscribers, and 2.6 million fixed-line users. Mobile broadband subscribers reached 138.7 million, while fixed broadband users stood at 3.6 million.
Sector investments continued to decline, recording $765 million in 2023-24 compared to $770 million in 2022-23. In previous years, investments were $1.657 billion in 2021-22, $1.214 billion in 2020-21, and $1.140 billion in 2019-20.
Cellular Mobile Operators (CMOs) led investments, contributing $431 million in 2023-24, up from $396 million in 2022-23.
Over the past five years, total telecom sector investments surpassed $3.63 billion. Revenues reached Rs955 billion in 2023-24, with the sector contributing Rs335 billion to the national exchequer, slightly below the Rs341 billion contributed in 2022-23.
Mobile Average Revenue per User (ARPU) increased to Rs276 per month in 2023-24 from Rs229 the previous year, with April-June 2024 ARPU rising to Rs302.
Jazz and Ufone recorded notable ARPU growth, reaching Rs327 and Rs280 in 2023-24, up from Rs254 and Rs233, respectively.
Telenor and Zong also reported increases, with ARPU at Rs214 and Rs258. During April-June 2024, Jazz led with Rs369 ARPU, followed by Ufone at Rs304.
The report emphasized the significant financial investment required for 5G deployment, including network upgrades, advanced antennas, and fiber optic backhaul. These challenges, coupled with a competitive market and price-sensitive consumers, pose hurdles for telecom operators.
Pakistan’s cybersecurity environment is evolving rapidly, with critical infrastructure, financial institutions, and government entities increasingly targeted by cyber threats. The PTA warned of challenges like limited resources, a lack of skilled professionals, and inadequate public-private collaboration. While international cooperation has been prioritized, strategic measures are needed to address the full spectrum of threats.
From July 2023 to June 2024, cyber-attacks surged, including malware, phishing, Distributed Denial-of-Service, ransomware, and insider threats. Advanced Persistent Threats (APTs), such as Gamaredon, DoNot, Bitter, Kimsuky, Lazarus, and SideWinder, emerged as significant threats. These groups targeted internet backbone infrastructures, healthcare entities, and government-affiliated organizations using sophisticated techniques influenced by geopolitical factors.
