ISLAMABAD: A Senate subcommittee on Friday denied a call to give the Special Communications Organisation (SCO) complete independence to provide IT and telecommunications services throughout the country, arguing that it would be against the government’s deregulation policy.

The Ministry of IT said the SCO’s proposal was tantamount to a drastic shift in government policy as well as in the terms and conditions of existing telecommunications players.

PML-N Senator Javed Abbasi agreed with the government, calling the proposal badly thought out and wrong. “The SCO management is demanding a huge amendment to the law,” he added.

The Senate subcommittee on IT met to discuss a proposed amendment to the 1996 Pakistan Telecommunication (Re-organisation) Act that would give the SCO a free hand to compete as a commercial enterprise nationwide.

The SCO is a public sector organisation that works under the IT ministry. It was established in 1976 to develop, operate and maintain telecommunications services in Azad Kashmir and Gilgit-Baltistan and, over time, has developed a massive IT and telecommunications infrastructure. The organisation has laid over 2,500 kilometres of fibre optic cables across its mandated areas.

SCO proposal to operate as commercial entity would contradict govt’s deregulation policy

For the last two years, the SCO has demanded autonomy to operate as a commercial entity and expand its services across the country.

SCO Regulatory Affairs Director retired Col Ghulam Hussain Anjum has argued that their work is slowed down by red tape, while Development Director Lt Col Rizwan Tiwana has said: “It takes years to get a project approved and then get funding for it, losing business to private telecommunications operators that are advancing rapidly.”

SCO Marketing Director retired Brig Iftiharul Wahab proposed a free licence to operate and compete with other telecommunications operators, such as Mobilink, Telenor and Zong, throughout the country.

He said the SCO has also proposed a tax exemption on its income, assets, turnover and sales and customs duties on imports and exports. Above all, the SCO has asked that it continue to be funded by the federal government.

The IT ministry expressed apprehensions regarding the requests, saying that any discussion of the proposals by the committee could have serious implications for investor confidence and cause confusion among existing and potential players, resulting in an adverse effect on the growth of the economy and in particular, the telecommunications sector.

IT Joint Secretary Syed Khalid Raza Gardezi told the subcommittee the organisation operates without any obstacles under the ministry. He explained that all of the SCO’s financial needs are met by the government to ensure it operates smoothly in its assigned area.

The SCO takes 80pc of the budget every fiscal year, Mr Gardezi said. “We can sit down with the SCO again to find solutions to their concerns,” he added, saying that the SCO is one of the most effective arms of the ministry.

The ministry also said the government already owns 62pc shares in the Pakistan Telecommunication Company (PTCL) and Ufone. Creating another wholly-owned telecommunications player would run contrary to the government’s 2003 deregulation policy and the objections of the telecommunications act.

Mr Gardezi said the National Telecommunication Corporation was established under the telecommunication act to provide government entities across the country secure telecommunications services.

“The need for a dedicated telecom operator to meet the government’s communication requirements are fully met under the existing regime,” he said.

Subcommittee chair, Awami National Party Senator Mohammad Daud Khan Achakzai, denied the proposal and said the organisation was established for a specific purpose, and without any commercial objectives. However, he did ask the government to again address the SCO’s concerns.

Published in Dawn, April 1st, 2017