The cost of using mobile phones in Pakistan has increased dramatically in recent years. Many people wonder why this happens and what can be done to control it. In this article, we explore the reasons for rising mobile phone tariffs in Pakistan and what it means for the country’s economy and society.
The Importance Of Mobile Phones in Pakistan
The use of mobile phones has grown rapidly in Pakistan over the past decade. According to the Pakistan Telecom Authority (PTA), the number of mobile phone subscribers in the country reached 184 million in 2021. This is a significant increase from the 90 million users reported in 2015.
Increase in Mobile Phone Tariffs
Mobile phone tariffs have also increased in Pakistan despite the increase in the number of subscribers. This worries many people because it is difficult for them to afford a phone.
Reasons for Increase in Mobile Tariffs
In this section, we are going to explore the various reasons for the increase in mobile tariffs in Pakistan.
Depreciation of Pakistani Rupee
One of the major reasons for increasing mobile tariffs in Pakistan is the depreciation of Pakistani Rupee. In recent years, the rupee has depreciated significantly against major currencies such as the US dollar. As a result, mobile phone companies had to raise their prices to compensate for the depreciation.
Increase in Taxes and Duties
Another reason for the increase in mobile phone tariffs in Pakistan is the increase in taxes and duties on mobile phones. In 2018, the Pakistani government introduced a new tax on mobile phones called the Mobile Device Manufacturing (MDM) policy.
The policy requires phone makers to pay an additional tax of up to 17% on their sales. As a result, mobile phone companies raised prices to cover the extra cost.
Network Expansion Costs
Mobile phone companies in Pakistan are also facing increased costs associated with network expansion. As the number of users continues to grow, businesses need to invest in expanding their networks to provide better coverage and connectivity. These costs are then passed on to consumers in the form of higher tariffs.
Impact of Mobile Tariff Increase
In this section, we discuss the impact of mobile tariff increase on the economy and society of Pakistan.
The increase in mobile phone tariffs in Pakistan has had a negative impact on the economy. Higher interest rates reduce the number of people who can afford to use cell phones, which in turn reduces the demand for cell phones. This affected the revenues of mobile phone companies and also led to a reduction in government tax revenue.
Rising mobile phone prices in Pakistan also have a social impact. Mobile phones are no longer just a luxury, but a necessity for many people. Rising interest rates make it difficult for people to keep in touch with loved ones, obtain information and conduct business. This widens the digital divide between rich and poor, as those who can afford a mobile phone have an advantage.
Possible Solutions to Control Rising Mobile Tariffs
In this section, we will discuss some possible solutions to control rising mobile tariffs in Pakistan.
Government can play a key role in controlling rising mobile tariffs in Pakistan.It could reduce taxes and duties on cell phones, provide cell phone companies with subsidies for network expansion, and regulate the prices charged by cell phone companies.
Increased competition in the mobile telephony market is also helping to control prices. The government can encourage new players to enter the market, which will increase competition, while will increase competition and force existing players to lower their prices to remain competitive.
Consumer awareness is also important to control rising mobile tariffs in Pakistan. People should be aware of their rights as consumers and demand fair prices from mobile phone companies.They can also upgrade to more affordable plans and packages offered by mobile phone companies.