Pakistan’s telecom sector has a bright future in the digital economy

• Pakistan has a large and tech-savvy population, which is a major opportunity for the telecom sector.
• The government supports digital transformation through infrastructure and policy investments.
• The development of digital infrastructure can boost economic growth and improve people’s lives.

Presently, Pakistan stands as a prominent Asian market, displaying remarkable mobile phone penetration growth that establishes a strong base for digital services and innovation.

“This has been driven by investments in infrastructure and the expansion of mobile broadband services. The large and tech-savvy youthful population represents a considerable consumer base and workforce, opening up immense opportunities and creating a conducive environment for digital transformation,” stated Mr. Mikhail Gerchuk, CEO of e& International, the parent company of PTCL Group.

In a special interview with ProPakistani, Mr. Mikhail Gerchuk, a prominent figure in Pakistan’s telecom and technology sector, discussed the country’s vast potential, its macroeconomic landscape, digital progress, and the hurdles confronted by telecom operators.

Gerchuk expresses optimism about Pakistan’s potential and reiterates his company’s dedication to fostering its growth by enhancing digital infrastructure.

With a population of around 240 million, a significant majority of whom are under 30 years old, the telecom market holds vast potential and opportunities.

He sees this population as a chance for the nation to achieve global success and emphasizes that e& International, via PTCL Group, is committed to fostering this advancement by investing in and establishing strong digital infrastructure.

Pakistan’s telecom sector has a bright future in the digital economy

The government has been instrumental in driving digital transformation through diverse initiatives and policies that promote e-commerce, digital financial services, and the growth of a digital ecosystem.

Studies show that the advancement of digital infrastructure can spur economic growth and empower individuals to lead improved lives.

The PTCL Group strives to play a vital role in Pakistan’s digital transformation journey, aiming to empower all citizens and create a positive influence on both their personal and professional aspects of life.

Similar to many other countries worldwide, Pakistan has encountered significant macroeconomic difficulties, especially over the past year. Currency devaluation and rapid inflation have emerged as critical issues influencing the overall economy.

Currently, e& stands as the biggest foreign investor in Pakistan, and these factors have affected both its investments and returns. Gerchuk also expressed apprehensions regarding the substantial taxation imposed on telecom operators in Pakistan, which ranks among the highest globally.

“Despite expectations of tax reductions in the budget cycle, no relief was granted”, said Mr. Gerchuk.

The interplay of currency devaluation and elevated taxes has resulted in a decrease in the average revenue per user in terms of dollars. This has added pressure on the telecom industry’s capacity to invest in digital infrastructure.

Gerchuk also pointed out the need for consolidation in the telecom market, particularly considering the presence of four mobile players in the Pakistani market.

In an emerging market like Pakistan, this places significant pressure on telecom operators to heavily invest in digital infrastructure, given the paramount importance of creating a ‘Digital Pakistan’. Gerchuk emphasizes the crucial role of enhancing connectivity and infrastructure to align Pakistan with global standards.

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Even with the macroeconomic hardships and telecom sector challenges, Gerchuk’s steadfast dedication to Pakistan’s potential remains unwavering.

By concentrating on advancing digital infrastructure and surmounting hurdles, the telecom industry holds the key to propelling Pakistan towards a future enriched with digital empowerment.

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