Starlink, Web1 may come to Pakistan as national policy gets nod

ISLAMABAD: Caretaker Minister for IT Dr Umar Saif said on Friday that they have successfully implemented various key initiatives, such as routing freelancers’ remittances through third parties with PayPal’s assistance and enabling private companies to utilize low-orbit satellites for swift internet services.

The minister further mentioned that following the cabinet’s approval of the National Space Policy, the minutes were released, allowing different private sector companies to use low-orbit satellites. As a result of this development, companies like Starlink and Web1 may enter Pakistan, contingent upon contributing six percent to research and development (R&D). All international companies, including Starlink, will be permitted to launch satellite communication services in Pakistan after obtaining a no-objection certificate from the defence ministry.

“In a short timeframe, we have achieved various initiatives, including laying the groundwork for launching 5G services in Pakistan, expected to be completed in the next financial year. We have fulfilled our responsibilities to the best of our abilities and will step down after the upcoming general elections. The incoming government will need to continue our efforts to achieve a digital Pakistan,” said Caretaker Minister for IT, Dr. Umar Saif, during a discussion with a select group of reporters at his office on Friday.

The minister addressed several issues, including the establishment of an auction supervisory committee for the launch of 5G technologies, revealing that 300 MHz spectrum had been reserved. A consultant will be hired to determine the actual potential for the upcoming spectrum auction. He highlighted a shift in the dynamics, as Telenor Pakistan’s acquisition by the PTCL has introduced the possibility of intense competition among the existing players. The consultant will also recommend whether payments for the auction should be made in US dollars or rupees, along with a specified mode and timeframe.

The minister declined to provide an assessment of the benchmark for the upcoming auction price, stating that the consultant would establish the benchmark based on the current market environment. He mentioned that the ministry was prepared to launch several digital initiatives next week, including routing remittances through PayPal, offering smartphones to customers on easy installments, and conducting standardised quality tests for IT graduates to position Pakistan as a ‘TechDestination.’

Although, PayPal is not directly coming to Pakistan, an agreement has been reached to channel remittances from PayPal through a third party, with the formal launching ceremony scheduled for January 11.

Highlighting the government efforts to boost the IT and telecom sector exports, the minister stated that sector exports are currently $2.6 billion, but in reality, they reach around $5 billion. This is because a significant portion is parked outside the country to cover the salaries of international employees and monthly expenses for cloud hosting, marketing and sales on platforms like Google, Amazon, LinkedIn, etc.

“We collaborated with the SIFC and State Bank to make a significant policy intervention, allowing IT companies to retain 50 percent of their export revenue in dollars in an account in Pakistan, enabling them to cover international expenses without restrictions. IT companies are now repatriating dollars, resulting in a 13 percent increase in export revenue in one month,” said the minister. He mentioned the upcoming initiatives by telecom companies to provide the latest phone models in easy installments, with Jazz planning to offer iPhones. In case of installment failure, the Pakistan Telecommunication Authority (PTA) will use the Device Identification, Registration, and Blocking System (DIRBS) to block the handset. The IT and Telecom Ministry will unveil the country’s inaugural start-up fund on January 9, 2024. The Ignite-National Technology Fund will oversee operations, ensuring transparency through an independent steering body. The federal government has allocated Rs 2 billion for the creation of Pakistan Startup Fund (PSF).