Jazz CEO calls for reduced taxes to boost Pakistan’s telecom growth

Pakistan’s telecom industry, already a significant contributor to national revenue, is overburdened by taxes, according to Jazz CEO Aamir Ibrahim.

In conversation with Nukta founder and CEO Kamran Khan, Ibrahim highlighted the impact of excessive taxation, stating, "A third of the industry’s revenue is taken up by taxes." He noted that for every PKR 100 spent by customers, 15% is deducted as withholding tax and an additional 19% for GST.

The telecom industry, which Ibrahim described as a “documented sector,” contributes over PKR 850 billion in revenue. However, Ibrahim warned that relying on established sectors to support the economy stifles growth. “We need to encourage new businesses instead of squeezing those already operating,” he said.

Ibrahim outlined a range of taxes and fees telecom companies pay, including for spectrum licenses, the Universal Service Fund (USF), and Ignite. He contrasted Pakistan’s revenue per user with other nations, pointing out, “The average revenue per user here is close to $1 monthly, compared to $2 in India, $4 in Kenya, and $1.5 in Bangladesh.”

Ibrahim also called attention to the need for accessible digital payments, underscoring the role of JazzCash in documenting transactions and improving transparency. "Digitizing payments will begin to document our economy, which currently lacks structure,” he explained. JazzCash has already implemented QR codes at 250,000 outlets nationwide, facilitating digital transactions.

Further highlighting Pakistan’s spectrum limitations, Ibrahim stated, “Pakistan can provide 20 times faster internet, but spectrum access is restricted." He warned that without increased spectrum, the industry cannot meet customer demands for faster speeds or increased connectivity.

With over 100 million customers, Jazz also plans to expand its services internationally, moving its office from Amsterdam to Dubai as part of a global strategy. Ibrahim emphasized, "If Indian companies can become global players, so can ours."