China Mobile Paid license renewal fee of $238.6 Million to Pakistan

A Chinese cellular phone service company has paid the price for renewal of its telecom spectrum license, supporting slender the financing hole for the government. China Mobile (CMPak) has deposited Rs 37.16 billion (equivalent to $238.6 million) in its license renewal fee with the Pakistan Telecommunication Authority (PTA).

PTA spokesperson Khurram Mehran told The Express Tribune that

this is (around) 50% license renewal fee being paid in neighborhood currency (Pakistani rupees). It was once the third cellular firm which paid partial rate for the renewal of the license in the ongoing fiscal year.

PTA had given it the choice to either pay the fee in Pakistani rupees or in US bucks for renewing the license for 15 years. Earlier, Jazz paid the charge in neighborhood Forex while Telenor paid in US dollars.

Recent deposits from the cellular operators in license renewal rate to the tune of greater than Rs. 107 billion will grant a guide to the countrywide exchequer as properly as to the economy. This additionally indicates the tremendous contribution by using the telecom zone and efforts of PTA, said Pakistan Telecommunication Authority (PTA).

This non-tax revenue will barely reduce the financing hole and help the government slender the fiscal deficit. Earlier, the government estimated non-tax revenue series at Rs.894.46 billion in the cutting-edge fiscal year, in accordance with price range documents.

The Pakistan Tehreek-e-Insaf (PTI) government faced a shortfall of Rs. 218 billion in tax revenue collection in the first five months (July-November) of the present-day fiscal year. The government of Pakistan had accepted the renewal of licenses of Jazz and Telenor Pakistan at $450 million every whilst CM Pak has to pay $470 million.

However, the collection of the renewal rate from two telecom companies which was budgeted in the preceding fiscal year had been delayed due to the Islamabad High Court.

These licenses were due for renewal on May 25, 2019, and October 22, 2019, respectively. In 2014, the authorities of Pakistan renewed the license of Ufone at $291 million.

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