Pakistan’s Telecom Activities Now Worth Nearly Rs. 500 Billion


The output of the telecommunication activities has been estimated at Rs. 492.956 billion, whereas intermediate consumption is Rs. 178.567 billion, resulting in a Gross Value Added (GVA) of Rs. 314.389 billion for 2015-16, says the Pakistan Bureau of Statistics (PBS).

PBS, in its report on Change of Base of National Accounts from 2005-06 to 2015-16, stated that the telecommunications division includes the activities of providing telecommunications and related services, i.e., transmitting voice, data, text, sound, and video. These activities include wired & wireless telecommunication and satellite telecommunication activities etc. The source agencies are Pakistan Telecommunication Corporation Ltd (PTCL), all other major telecommunication companies, and mobile phone companies.

The report noted that a study was carried out during 2016-17 to estimate the value addition of computer programming and consultancy activities. The sampling frame was received from Pakistan Software Export Board (PSEB). Efforts were made to collect primary data, however, much success was not attained.

After detailed deliberation with PSEB, PSEB agreed to provide valuable information regarding revenues, exports, the core area of expertise, and employment size. The identification of establishments was kept confidential by PSEB. PBS utilized this information and consulted with the Pakistan Software House Association (P@SHA). Results were adjusted to 2015-16. The output of the activity has been estimated at Rs. 161.263 billion, whereas intermediate consumption is Rs. 32.305 billion, resulting in a GVA of Rs. 128.958 billion for 2015-16.

Base year estimates for information service activities have been developed through a study “Computer-related activities 2016-17” with the collaboration of PSEB and P@SHA. Results were adjusted to 2015-16. This activity includes data processing services of web hosting & related activities, news agencies, and telephone-based information services. The output of the activity has been estimated at Rs. 52.403 billion, whereas intermediate consumption is Rs. 8.764 billion, resulting in a GVA of Rs. 43.639 billion for 2015-16.

The report noted that the Gross Fixed Capital Formation (GFCF) of the telecommunication industry is compiled directly from data provided by PTCL, other major telecom companies, and mobile phone companies on annual basis separately for the private and public sectors. The contribution of cable operators and internet service providers (ISPs) has been assessed through a separate study.

The GFCF in the private sector for the telecommunication industry has been estimated at Rs. 97,987 million, while for the public sector, the GFCF is Rs. 28,307 million. In the private sector, major contributors are mobile phone companies, while Pakistan Telecommunication Company Ltd. and Pak Telecom Mobile (Ufone) are leading contributors in the public sector.

The report further noted that the information and communication industry is comprised of publishing activities, motion pictures, programming and broadcasting, telecommunications, computer programming, consultancy, and information service activities. In 2005-06 rebasing, the information part was used to cover under “Other Private Services,” whereas communication was covered under “Transport, storage, and communication.”

The activities have been re-arranged following the demand of users and industry stakeholders in the wake of the growing importance of IT and allied services as well as the structure of the PSIC 2010. The GFCF in the information and communication industry has been estimated at Rs. 158,037 million, including public sector GFCF of Rs. 28,307 million and private sector GFCF of Rs. 129,730 million.

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