Pakistan Electronic Media Regulatory Authority (PEMRA) in two different letters written to the federal government has requested to grant the status of industry to the cable TV sector as well as to grant it tax holiday or exemption on import of digitalisation equipments, thus facilitating cable operators in meeting digitalisation deadline by September 30, 2016.
While pleading the much awaited demand of cable TV operators on both issues, PEMRA in its letters has urged the federal government that the cable TV services in Pakistan have attained a significant status in the socio-economic set up of the country. The sector has developed enormously in terms of provision of quality media services, establishing reliable business enterprises and adoption of latest technologies. This multifarious development has generated considerable economic activity and the prospects of further enhancement are markedly visible.
PEMRA letter said that it had more than 4,000 licensed cable TV licensees who were contributing significantly to media’s growth, besides making investments and creating employment opportunities in the country. The scarcity of funds and market incentives are acting as an impediment in achieving the desired level of development in the cable TV sector.
PEMRA says that there are 74 million cable and satellite viewers and 61 million terrestrial viewers. According to estimates a cumulative investment in electronic media sector in Pakistan is $4 billion while employs 250,000 people directly and indirectly. Introduction of new technologies i.e. DTH, IPTV, Mobile TV, satellite radio and digitalisation of Cable TV will further generate opportunities for investment and employment in the production of set top boxes, digital receivers and allied technologies. All this makes a strong case to declare the Cable TV sector an industry which would enable cable operators to avail short term and long term loan facilities, import duty exemptions and other allied facilities extended to an “industry”.
In addition to encouraging local and foreign investments, the Industry status will also facilitate import as well as manufacturing of better quality equipment at consumer friendly market prices. These developments will subsequently lead to improvement in quality of the cable TV services, at par with the global standards.
Moreover, PEMRA, on request of Cable Operators Association of Pakistan (CAP), has requested FBR through the federal government for declaring exemption from tax on import of equipment required for digitalisation of cable TV services and set top boxes (STBs). This would facilitate CTV operators to digitalise their respective cable TV services and to meet the international (ITU) commitment. Exemption in taxes and duties on import of such equipment will also reduce the cost of digitalisation and its ultimate benefit would be passed on to the general public in the shape of low prices of digital cable TV services. The said exemptions would also facilitate import of quality equipment at consumer friendly market prices, PEMRA says.
