The Law Ministry has turned down the request of the Ministry of IT and Telecom to extend the services of Universal Services Fund (USF) to Gilgit-Baltistan (GB).
The request was forwarded to the Ministry of Law in November 2021 by the IT Ministry seeking legal opinion, if USF can launch telecom projects in the GB region, after the directives of the Prime Minister to expand the IT and telecom networks in GB area.
The GB government had asked the Ministry of IT and Telecom to implement the directives of the PM in this regard, but the officials of the ministry noted that constitutionally both AJK and GB were not part of the country.
“The reply has been received and the Law Ministry maintains that legally the USF amount generated from Pakistan for development of IT and telecom in un-served and under-served areas of the country, cannot be utilized in these areas which were constitutionally not part of Pakistan,” said a senior official of the Ministry of IT and Telecom.
The official added that the Law Ministry has however suggested that the federal government or any province can give special grants to the GB or AJK for promotion of IT and telecom.
Earlier the IT Ministry had asked Law Ministry whether by extending the jurisdiction of both the companies (USF and IGNITE) through amending their Memorandum of Associations (MoAs) be legally able to render their services in GB and AJK or is there any other amendment (s) required under the relevant laws.
The Law Ministry was also asked whether merely opening of branch offices of USF and IGNITE in GB and AJK both the public-owned companies be able to extend their services in the referred areas and spend the funds on giving telecommunication services.
USF is a subsidiary of the Ministry of IT to expand the internet and telecom services to remote areas of the country where the telecom companies and the internet service providers do not enter as such areas were not commercially viable. The fund consists of 1.5 per cent of adjusted revenues of the telecom operators.
“The amount is a contribution by the IT and telecom companies and only these companies are authorized to participate in USF projects for extending IT and telecom services in remote un-served areas,” the official added.
Currently USF Pakistan is working on more than 40 projects worth over Rs35 billion in 70 districts of the country.
The official added that there were concerns that the cellular mobile companies who contribute to the USF might object that the amount generated by them from Pakistan was being spent in GB and AJK, where they have limited presence.
On the other hand at least Rs352 million collected by GB Council USF, is unused for what officials claim, legal hindrances.
The GB too has a company USF (GB) established in 2015, to extend IT and telecom services to un-served areas of the region, but the USF (GB) has yet to initiate any project from the available fund of Rs352 million.
The key contribution in USF (GB) is from revenues generated by the state owned Special Communications Organization (SCO), which is the main IT and telecom service provider in GB and AJK.
As per the documents, Gilgit-Baltistan Council, which is chaired by Prime Minister, had earlier adapted the Pakistan Telecommunication (Re-Organization) Act, 1996 for G.B.
It may be added here that for want of the resolution of legal and technical hindrances, these companies were unable to initiate projects in GB and AJK.
Since its establishment the GB Council USF has had at least five Board meetings. The company in collaboration with the GB government and Special Communication Organization has reportedly identified at least 55 GSM, broadband and PSTN in the area.
The investment and funding under USF and IGNITE were needed to provide the telecommunication facilities to remote areas of GB and AJK to facilitate the residents and tourists.
