PTA’s Profit Grew by 286% in Q1 FY22

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PTA’s Profit Grew by 286% in Q1 FY22

In the first quarter of the fiscal year 2021-22, the profit of the Pakistan Telecommunication Authority (PTA) increased by 269 percent year on year.

PTA’s profits increased to Rs. 30.1 billion in the first quarter of FY22, compared to Rs. 8.2 billion in the previous year, according to the State Bank of Pakistan (SBP).

The government earned Rs. 23.4 billion for the issuance of a 4G spectrum license to a large cellular carrier, Ufone, resulting in a dramatic increase in revenue. The balance of the revenue came from the authority’s different accounts and levies.

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The sum received for the license was half of the entire sales price of the license, with the remaining amount being paid in five equal annual installments according to the terms and conditions.

In terms of non-tax revenues, PTA’s contribution is the second-highest in the country.

The State Bank of Pakistan (SBP), which is the largest producer of non-tax revenue, earned Rs. 109 billion in Q1 FY22, compared to Rs. 105 billion in the same period the previous year, a modest increase of 3.5 percent year-on-year.

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Despite a drop in interest earnings due to the partial retirement of the government’s debt with SBP, this was achieved. Interest revenues from open market operation (OMO) injections then doubled during the same period last year, more than offsetting the loss.

Royalties on oil and gas increased by 48 percent in the first quarter of FY22, rising to Rs. 21.7 billion in 2021 from Rs. 14.6 billion in 2020.

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Passport and other fee revenues increased by 106 percent in Q1 FY22, to Rs. 6.1 billion from Rs. 3 billion the previous year.

The government’s revenue from the Petroleum Development Levy has dropped by 90%. It dropped to Rs. 13.3 billion in Q1 FY22, down from Rs. 136 billion in Q1 FY21. The significant discrepancy is due to the government’s use of this levy to absorb rising fuel costs.

Overall, the government’s non-tax revenue income decreased by 22% during that time period. In Q1 FY22, it was Rs. 257.7 billion, compared to Rs. 356.3 billion in Q1 FY21.

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