While, some of the Senate Standing Committee Members on Cabinet showed reservation during a Committee meeting regarding payment of royalty, technical services and other expenses incurred by Foreign Companies. It exposed the legislators’ lack of knowledge who are not even aware of the Government Investment policy under which these Telco companies have set-up businesses in Pakistan.
The reservations specially made by a member from a religious party who reportedly has commercial interest and is trying to pressurize through Federal Board of Revenue (FBR) Telcos for a favorable decision on the supply of power systems used for mobile network base stations. The multinational telco companies who have made billions of dollars of investments in Pakistan are not happy with the current regulatory and government policies and any further unreasonable arm twisting action may not go well with the industry investors. Some of the telecom industry players are already in litigation with NAB on ostensible inquires and the MoITT decision for License Renewal at the Islamabad High Court. The recent spat by the Senate committee member will further pollute the Telecom deteriorating business environment.
The recent spat by the Senate committee member will further pollute the Telecom deteriorating business environment.
The successive Pakistan Governments over the past 30 years have tried to attract Foreign Direct Investment by offering them incentives like 100% ownership, repatriation of profits, royalty and technical services fee that has been the hallmark of the Pakistan Investment Policy. These incentives to investors over the years are already provided on the Board of Investment website. To visit the website: Click Here
100% ownership, repatriation of profits, royalty and technical services fee that has been the hallmark of the Pakistan Investment Policy
The uncalled comment by the legislator at such critical time not only exposes the lack of sense of responsibility but also ignorance of the legislators regarding the government policy that could endanger the business environment. Any action on such comments by Government bodies could also result in delay of the introduction of the much needed new services as well as overall services expansion of the cellular services.
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