The Pakistan Telecommunication Annual Report 2024 has revealed a record-breaking surge in telecom revenues, which reached Rs. 955 billion in the fiscal year 2023-24. This marks a 16.89% increase compared to the previous year’s Rs. 817 billion.

The growth continued a consistent upward trajectory since 2020 when revenues were Rs. 599 billion. Over the years, revenues climbed to Rs. 641 billion in 2021 and Rs. 717 billion in 2022, showcasing the sector’s resilience and expansion.

The report attributes this exceptional growth to rising digital adoption, enhanced connectivity, and an improved Average Revenue Per User (ARPU), which soared to Rs. 302 per month during April-June 2024, a 31.9% increase from FY 2022-23.

However, despite the revenue boom, the telecom sector’s contribution to the national exchequer saw a slight dip in FY 2023-24, totaling Rs. 335 billion, a 1.76% decrease from Rs. 341 billion the previous year. Contributions have fluctuated in recent years, from Rs. 288 billion in 2020 to a low of Rs. 222 billion in 2021 before recovering to Rs. 329 billion in 2022.

Investment in Pakistan’s telecom sector has shown a mixed trajectory. Total investment in FY 2023-24 was recorded at USD 765 million, slightly below the USD 770 million in FY 2022-23, reflecting a marginal 0.65% decline. This contrasts with a remarkable peak in 2022, when investments surged to USD 1,657 million, a 36.49% jump from USD 1,214 million in 2021.

Foreign Direct Investment (FDI) in the telecom sector witnessed a sharper downturn, with inflows plummeting to USD 46 million in FY 2023-24,a 20.69% decline from USD 58 million in FY 2022-23. This downward trend is even starker compared to FDI figures from 2020 (USD 763 million) and 2021 (USD 204 million).