- The PTA report reveals that there are 196 million telecommunications subscribers.
- CMOs see maximum investment of $431 million in 2023-24: report.
- Report shows 5G deployment requires substantial investment.
ISLAMABAD: Pakistan’s telecom sector witnessed an over 20 per cent drop in foreign direct investment (FDI), which totaled $46 million in the 2023-24 financial year, compared to $58 million in the previous fiscal year, 2022-23, The News reported. Tuesday.
FDI inflows have been lower than outflows, with investment inflows amounting to $46 million, while outflows of $90 million in FY 2023-24, according to the annual report of the Pakistan Telecommunication Authority (PTA) released on Monday. In 2022-23, FDI inflows stood at $58 million, while outflows stood at around $280 million.
The report also reveals that there are 196 million total telecommunications subscribers, including 143 million broadband subscribers, 193.4 million mobile subscribers and 2.6 million fixed-line subscribers.
Furthermore, the number of mobile broadband subscribers reached 138.7 million and the number of fixed broadband subscribers is 3.6 million. Investment in this sector continues to decline as it amounted to $765 million in 2023-2024, compared to $770 million in 2022-23. Earlier in 2021-22, the investment stood at $1.657 billion, $1.214 billion in 2020-21 and $1.140 billion in 2019-20.
Cellular mobile operators (CMOs) recorded a maximum investment of $431 million in 2023-24, up from $396 million in 2022-23. Over the past five years, total investments in Pakistan’s telecom sector have crossed the $3.63 billion mark.
Its revenue reached Rs955 billion in the 2023-24 financial year, attracting $765 million in investments and contributing Rs335 billion to the national exchequer. The telecom sector’s contribution to the exchequer was Rs 341 billion in 2022-23. The mobile average revenue per user (ARPU) increased to Rs 302 per month in April-June 2024.
Arpu increased to Rs276 per month in the financial year 2023-24, from Rs229 in the previous year. However, the APRU was not expressed in dollars, which have declined relative to other comparable countries.
Jazz and Ufone particularly stood out, achieving significant Arpu growth rates of Rs327 and Rs280 respectively in 2023-24, compared to Rs254 and Rs233 in the previous year. Telenor and Zong also saw growth with their Arpu increasing by Rs214 and Rs258 respectively. In April-June 2024, Jazz’s Arpu exceeded Rs 369 per month, followed by Ufone’s Rs 304 during this period.
The report shows that 5G deployment requires substantial investment in terms of upgrading existing networks and expanding infrastructure with the installation of small cells, advanced antennas and an extensive fiber backhaul network. optical. This places a considerable financial burden on telecom operators as obtaining the required capital can prove a challenge for them, especially in a competitive market where consumers are price sensitive.
The cybersecurity landscape in Pakistan is evolving rapidly, with a marked increase in threats targeting critical infrastructure, financial institutions and government entities. The PTA warned that challenges such as limited resources, shortages of qualified professionals and inadequate public-private collaborations continue to hinder progress.
The global nature of cyber threats has necessitated prioritizing international cooperation to strengthen cybersecurity defenses, and while Pakistan proactively builds connections and creates synergies, there is still room for strategic actions aimed at mitigating all the threats that endanger the digital ecosystem.
Pakistan saw a significant increase in cyberattacks between July 2023 and June 2024. These included malware, followed by phishing, distributed denial of service, ransomware and insider threats, among others. Advanced Persistent Threats (APTs) represent the first tier of threat actors, distinguished by their advanced capabilities, sophisticated attack techniques, and continued evolution.
These cybercriminals are engaging in high-profile attacks using new tools and complex techniques that are beyond the capabilities of other cybercriminal groups.
Geopolitical factors significantly influence the tactics and targets of APT actors. The main APTs that targeted Pakistan in 2023 were Gamaredon, DoNot, Bitter, Kimsuky, Lazarus and SideWinder. Their primary targets included basic internet infrastructure, healthcare entities, and government-affiliated organizations.