Govt reviews telecom infrastructure, VC sector issues

December 19, 2025 (MLN):   The government  reviewed key challenges faced by the telecommunications infrastructure and venture capital sectors, with a focus on taxation, investment climate and growth prospects, and agreed to constitute a dedicated working group to examine proposals aimed at boosting investment and sectoral expansion.

The meeting was chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and was attended by Federal Minister for IT and Telecommunications Shaza Fatima Khawaja, Chairman Federal Board of Revenue (FBR), Chairman Securities and Exchange Commission of Pakistan (SECP), said a press release issued.

 Senior officials of the Ministry of Information Technology and Telecommunication, and representatives of telecom infrastructure companies under TOWERCO Pakistan, venture capital firms, legal and regulatory advisory firms, and public sector organizations including Ignite were also present.

A delegation representing telecom infrastructure companies that build, own and operate mobile network towers, along with venture capital firms investing in Pakistan’s startup ecosystem and broader business ventures, participated in the discussions.

The delegation shared insights into their business models, operational dynamics and on-ground challenges, particularly those related to physical infrastructure deployment and regulatory compliance.

Participants presented a number of proposals aimed at rationalizing and easing elements of the existing tax regime to facilitate growth, enhance investment inflows and support expansion in the telecommunications infrastructure and venture capital sectors.

The proposals were framed in the context of strengthening digital connectivity, improving service delivery and promoting innovation-led economic activity.

Addressing the meeting, the finance minister acknowledged the critical role of telecom infrastructure companies in enabling nationwide digital connectivity and highlighted the importance of venture capital in supporting entrepreneurship, innovation and job creation.

He stressed that a predictable, transparent and growth-oriented policy and tax framework is essential for attracting long-term investment and ensuring sustainable sectoral development.

The minister reiterated the government’s commitment to private sector-led growth, particularly in technology-driven and investment-intensive sectors, noting that while fiscal considerations remain important, a balanced approach is needed to encourage business expansion, formalization and the strengthening of Pakistan’s digital and innovation ecosystem over the medium to long term.

It was agreed that a dedicated working group, comprising representatives from the Tax Policy Office and other relevant stakeholders, would be formed to carry out a detailed review of the proposals and develop actionable recommendations.

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