There are growing concerns about potential delays in the expansion of broadband services to underdeveloped and remote areas. The Universal Service Fund (USF), an agency under the Ministry of IT, urgently requires immediate funding for ongoing and new projects. Without these funds, the government may face challenges in stabilizing Pakistan’s digital economy.
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The USF recently reported its performance and financial status to the Senate and National Assembly’s Standing Committee. It was revealed that during the tenure of the previous government led by the Pakistan Muslim League-N (PML-N), the USF’s funds were utilized to reduce the circular debt. Former Prime Minister Nawaz Sharif’s then-Finance Minister Ishaq Dar had also mentioned borrowing money from friends in the National Assembly.
Currently, the USF is owed a total of PKR 40.35 billion by the government. In 2013, the government had transferred PKR 57.20 billion to the USF in response to the circular debt issue. The USF has now demanded the return of its funds. Over the past decade, multiple reminders have been sent to the Ministry of Finance by the Ministry of IT, and some funds were returned in the last quarter of the previous fiscal year. After receiving PKR 11.13 billion, the government has promised an additional PKR 5.72 billion in the current fiscal year.
Despite these funds, the USF will still be owed PKR 40.35 billion. Full payment would enable the completion of ongoing projects and the initiation of new ones. Without a structured payment schedule soon, the USF may face difficulties. Over the past five years, the USF has launched projects worth over PKR 80 billion, many of which are now complete. These projects have provided services to a population of 30 million, with broadband service expansion in remote areas being entirely dependent on the USF. The USF’s structure and its broadband service delivery to underdeveloped areas are internationally recognized.
