Overview of Pakistan from Pest Analysis

Topics: Mobile phone, Telecommunication, Mobile network operator Pages: 14 (4413 words) Published: July 26, 2012
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).

Socio-cultural Environment
According to (Khilji 2001) Pakistan culture is made up of four thing i.e. Islam, Different races (origin), British heritage and American influence. (Khilji 2001, Islam 2004) both have mapped Pakistan culture on the Hofstede (1980) cultural model and found that Pakistan culture is oriented towards collectivism, high power distance, high masculinity and is highly oriented towards uncertainty avoidance. This result clearly shows that people living in such cultures are usually emotional; they usually live in the form of groups and give high respect to the other people with power and authority. Moreover the study also found that Pakistani people possess both qualities of aggressiveness and competitiveness (mostly men) as well as qualities like modesty but are more inclined towards later qualities described (khilji 2001). According to Population Census Organization (PCO 2007) report there are total of 96.28% of Muslims, 1.59% Christians, 1.60% Hindus, .22% Ahmadias, .25% schedule castes and .7% others castes living in Pakistan. The literacy rate in Pakistan has been improving and has reached 53% in 2006 as compared to 52% in 2005 which is low in the region. The major contribution to this improvement has been from rural areas and women (LFS 2006). There are 36% women who can read and write as compared to 63% of males (World fact book 2009). The percentage of the people aged between 18 and 26 who are enrolled at university or at higher education is 24.90 million out of which 12.26% are male and 12.63% are female students (HEC 2003-04). Higher Education Commission of Pakistan (HEC) initiated reforms in year 2002. The aim of this reform agenda is to improve the educational standard by providing best faculty, improved access, excellent learning and research facilities throughout the educational institutions in Pakistan (HEC 2006). According to Khilji (2001) due to increasing western influence people of Pakistan have adopted their religion (Islam)...
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