Two telecos submit Rs70.5 bn fee for renewal of licences

ISLAMABAD: The government on Tuesday announced that it received renewal of licences fee from two telecom companies worth $224.6 million and Rs35.262 billion respectively.

However, the government did not share information which company made payment of renewal of licence fee in US dollars and which one in rupee component. The Telenor Pakistan and Jazz has made payments.

Telenor Pakistan confirmed on Tuesday night that it has made a payment of $224.6 million to the Government of Pakistan towards renewal of its GSM licence. The development comes after the company voluntarily offered to pay under protest two weeks ago. “Telenor Pakistan believes that this significant FDI contribution is in line with its vision of social empowerment and will benefit the economy of Pakistan. As for the matter of licence renewal, it is sub-judice and we cannot further comment on the issue,” the company stated in a brief statement. The Jazz Company has made payments in rupees equivalent to Rs35.262 billion for renewal of its licence.

According to Finance Ministry’s announcement here on Tuesday, the government has received payment amounting to $224.6 million and Rs35.262 billion (equivalent of $224.6 million) from two cellular companies respectively as their licence renewal fee.

According to the statement, the licence renewal fee of telecom companies collected by Pakistan Telecommunication Authority is a significant source of non-tax revenue for the federal government. Due to stay orders given by the apex court, the collection of this renewal fee from two telecom companies which was budgeted in previous fiscal year had been delayed. However, with the efforts of Adviser to Prime Minister Dr Abdul Hafeez Shaikh, his team led by Secretary Finance and PT, due payment from the two companies has now been received by the government.

Adviser to PM on Finance Dr Abdul Hafeez Shaikh stated that there was progress on cellular companies licence renewal. The government received Rs35.2 billion from Jazz and $224.6 million from Telenor in partial settlement for their cellular licence renewal. Good News for the telecom industry and revenue collection of the federal government, he said in a tweet on Tuesday night.