ISLAMABAD: The government has started to return the Rs60 billion, taken from the account of the Universal Service Fund (USF) in 2013-14 to clear its circular debt, the Senate Standing Committee on IT and Telecom was informed here on Friday.

Chaired by Senator Palwasha Khan, the committee was briefed by senior USF officials, who highlighted the fund’s role in bringing telecom and internet services to the underserved and unserved areas, where operators do not venture due to low return on investment.

However, the committee was told that USF projects had been facing delays over the past one and a half year due to restrictions on equipment imports and a financial crunch.

When Senator Dr. Mohammad Humayun inquired about the reasons behind the financial issues, Minister of State for IT and Telecom Shaza Fatima Khawaja intervened to explain that in 2013-14, the country was facing a serious energy crisis and the finance minister at that time had transferred funds available under USF to clear the circular debt.

Finance ministry has already reverted Rs10bn, minister tells Senate body

“However, since USF money belongs to the telecom industry and it was meant for a specific purpose, the finance minister has agreed to return the amount gradually, and Rs10 billion has already been reverted [to the fund] in the recent federal budget,” Ms Khawaja said.

The committee was also informed that contributions to the USF fund came from the telecom sector, with no involvement of the government, or any foreign funding.

The committee was informed by USF officials that 68 projects were completed by the fund, from its inception in 2006 until 2018. Whereas, 93 projects were executed between 2019 and present day.

Similarly, Rs55 billion was spent during 2006-18 against Rs80.84bn from 2019 onwards.

The committee was also informed of the challenges faced by USF, including security concerns, damage to infrastructure by caused terrorists, hurdles created by provinces over NOCs to establish telecom infrastructure and land issued by local communities in Balochistan and KP.

The committee was also briefed by the senior management of Ignite (the national technology fund), but the presentation was overshadowed by Senator Anusha Rahman, who participated through video link and interrupted the Ignite presentation on a number of occasions.

Senator Rahman, a former IT minister herself in the previous Nawaz Sharif government, pointed out that these policies were initiated earlier, and criticised Ignite for not doing anything after 2018.

She also suggested that Ms Khawaja take charge of the boards of Ignite and USF to implement her government’s political agenda by reducing the role of bureaucrats in these institutions.

Published in Dawn, July 20th, 2024