Karachi, July 24, 2023 (PPI-OT): Former Vice President of FPCCI Atif Ikram Sheikh said on Monday that additional taxes on the internet will further reduce its usage and hit the economy. IT exports are already stagnating, as output in 2023 was less than that in 2022. It fell one percent year-on-year which can be tip of the iceberg. Exports of telecom services, computer services, and information services (ICT) stood at $2.6 billion in 2023 versus $2.62 million in 2022, he said. Atif Ikram Sheikh who has also served as President ICCI and Chairman PVMA said in a statement issued here today that digitalization leads to greater economic growth.
Better digital connectivity results not only in more opportunities for citizens but also increases the ability to generate trade and improve employment prospects, he said. Mobile technologies generated more than $4.5 trillion in terms of economic value addition, which is approximately 5 percent of global GDP, but according to the World Bank, almost three billion people in the world remain offline. he reports says that over 40 percent of the global population does not have access to mobile broadband. He said that according to the World Bank’s World Development Indicators, the South Asian region lags behind the East Asian Pacific region in terms of digital connectivity.
The former reported 82 mobile cellular subscriptions per 100 people in 2021, while the latter reported 128 subscriptions. Further, while only 2.4 percent of the South Asian population is connected using fixed broadband, this surges to almost 30 percent in the East Asian and Pacific region, he added. Pakistan performs worse than its South Asian counterparts. Only 21 percent of the population uses the internet, fixed broadband connectivity is at 1.3 percent, and mobile cellular subscriptions are at 82 percent.
According to a survey, over 56 percent of the manufacturing firms in Pakistan own a website, 37 percent of the smallest firms with less than 20 employees own a website, and more than three-quarters of the largest firms, with more than 100 employees, own a website. Firms located in smaller towns are less likely to own a website than firms located in larger cities. In comparison, over 62 percent of the firms in India own a website. Atif Ikram Sheikh underlined that it is essential that Pakistan improve its quality of digital infrastructure to ensure not only better connectivity for its citizens but also to improve its economic potential. Better digital connectivity can enhance the standard of living of people as it provides better access to not only basic services but also access to important information that can aid various commercial aspects, he said.
For more information, contact:
Atif Ikram Sheikh
Ex. Chairman PVMA, Former VP, FPCCI,
Former President ICCI, Former President HCCI,
Tel: +92-51-4437597, 4440772
Fax: +92-51-4440773