Government To Shift On Plan B To Meet Budget Deficits In Case Of Delay In 3G License Auctioning

Saad Qazi / News Reviews Category / 23rd September, 2011 / 0 Comments
Government To Shift On Plan B To Meet Budget Deficits In Case Of Delay In 3G License Auctioning

We already know that Government of Pakistan had plans to auction the 3G licenses, the main reason and rush behind these desperate measures taken by Government is budget deficiency. Anyhow, some of the sources have reported that now PTCL is thinking to go other way to meet its budget requirements instead of auctioning 3G licenses.

So, it seems like 3G licenses will not be auctioned this year. Previously, Government tried to fulfill its budget deficit by auctioning 3G licenses and generate revenue of over Rs. 75 billion but PTCL’s contract with Etisalat came in the way. That’s why they had to drop the 3G license auction for at least near future and made a plan B.
The plan B is to go directly for the 4G technology, yes, Government is now planning to auction 4G licenses to generate its revenues. Of course that would not be possible until at least the next year. Until then, Government has plans to meet the budget deficit by acquiring the control of USF (Universal Service Fund) and R&D Fund money which is lying in banks. However, these plans are still on hold, as a backup and Government is still trying to work things out with Etisalat to auction 3G licenses.Etisalat 3g Licence

The source stated that if Government acquires the USF fund, and other funds, they will be moved to Federal Consolidated Fund. It means that funds over Rs. 50 billion will be moved to Federal treasury from commercial banks. It will meet the budget deficit completely and Government will also try to keep reimbursing the USF fund as required.

The agreement with Etisalat will expire after the General elections in 2013, and then Government will be legally able to auction the 3G licenses.

 

 

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