Overview of Pakistan from Pest Analysis
Overview of Pakistan from PEST analysis
Political Environment
After Pakistan was created in 1947, there was only one provider of Telecom services in the country under the name of the T&T (Telephone & Telegraph). In 1990 Pakistan realized that it is becoming very difficult to provide Telecommunication services in the country by its own. So Pakistan signed agreement with WTO (World trade organization) according to which a set of regulation has to be formed to provide services in the country, promote both local as well as foreign competition in the market at very competitive prices so that investor has some acceptable margins of earning. To abide by the contract government of Pakistan then established Pakistan Telecommunication Corporation (PTC) to provide services in the country. In order to promote the Telecommunication services in Pakistan the government of Pakistan has passed ordinance in 1996 under which PTA (Pakistan Telecommunication Authority) was formed. PTA is a regulatory department for all the Telecommunication operations and services across the country (Haroon 2004).similarly Deregulation of Telecommunication sector was introduced in 2003 and licenses for wireless local loop (WLL), Long distance International (LDI) were granted to different foreign and local companies. First cellular policy was introduced in 2004 according to which two foreign companies Warid from UAE and Telenor from Norway have been granted licenses to enter Pakistan market.
Economic Environment
The liberalization of the Telecommunication sector of the Pakistan and Deregulation policy announced in 2004 has attracted many foreign investors in Telecommunication sector of Pakistan. Recently telecom companies from China, Norway and UAE have entered Pakistan. In the first quarter of the 2007 the total FDI in Telecom sector of Pakistan was noted as $878.1 million
which contributes to the 44.1 percent of overall FDI in the country during first quarter (PTA quarterly report 2007).
Political Environment
After Pakistan was created in 1947, there was only one provider of Telecom services in the country under the name of the T&T (Telephone & Telegraph). In 1990 Pakistan realized that it is becoming very difficult to provide Telecommunication services in the country by its own. So Pakistan signed agreement with WTO (World trade organization) according to which a set of regulation has to be formed to provide services in the country, promote both local as well as foreign competition in the market at very competitive prices so that investor has some acceptable margins of earning. To abide by the contract government of Pakistan then established Pakistan Telecommunication Corporation (PTC) to provide services in the country. In order to promote the Telecommunication services in Pakistan the government of Pakistan has passed ordinance in 1996 under which PTA (Pakistan Telecommunication Authority) was formed. PTA is a regulatory department for all the Telecommunication operations and services across the country (Haroon 2004).similarly Deregulation of Telecommunication sector was introduced in 2003 and licenses for wireless local loop (WLL), Long distance International (LDI) were granted to different foreign and local companies. First cellular policy was introduced in 2004 according to which two foreign companies Warid from UAE and Telenor from Norway have been granted licenses to enter Pakistan market.
Economic Environment
The liberalization of the Telecommunication sector of the Pakistan and Deregulation policy announced in 2004 has attracted many foreign investors in Telecommunication sector of Pakistan. Recently telecom companies from China, Norway and UAE have entered Pakistan. In the first quarter of the 2007 the total FDI in Telecom sector of Pakistan was noted as $878.1 million
which contributes to the 44.1 percent of overall FDI in the country during first quarter (PTA quarterly report 2007).