Financial Planning & Analysis Manager

New study warns heavy telecom levies & Mobile taxes are killing Pakistan's Digital Growth. By Muhammad Haaris | 2 hours ago | Pakistan's heavy sector-specific taxation on mobile telecom services is suppressing digital adoption. It slows down critical investment and hurts long-term economic growth. Frontier Economics prepared a groundbreaking report for VEON titled "Unlocking Digital Growth by Reducing Sector Taxation in Pakistan". The study warns that high telecom levies and mobile taxes create a dangerous "tax trap". These levies artificially raise consumer prices. Consequently, they discourage smartphone adoption and limit the expansion of the digital economy. Telecom levies & Mobile taxes: the harsh reality. Currently, Pakistan functions as a mobile-first economy. Mobile connectivity underpins digital inclusion, financial access, and formal economic participation. However, excessive taxation risks undermining the wider digitalisation agenda. The numbers paint a bleak picture: * A staggering 68% of Pakistanis aged above 15 still do not own a smartphone. * The country ranks 101st out of 105 countries in average mobile internet speeds. * The average download speed sits at a low 24 Mbps. * The monthly average revenue per user (ARPU) remains trapped around $1. This reflects weak affordability and low digital consumption across the population. * Pakistan's 4G population coverage stands at 81%, which falls significantly below the 94% average for Low-Income and Middle-Income Countries. Furthermore, the current tax structure completely contradicts the principle of efficient taxation. Efficient systems require broad-based taxes rather than concentrated burdens on critical sectors. Instead, Pakistan imposes one of the highest mobile tax burdens in the region. For example, consumers face a massive 37% combined sales and turnover tax rate on mobile services. This includes a 19.5% sales tax, a 15% advance income tax (AIT) from customers, and a 2.5% annual regulatory duty. Operators face severe financial hurdles as well. The state taxes corporate profits at 29%, plus an additional super tax of up to 10% depending on profitability. In addition, the government links spectrum license fees to the US dollar. This practice transfers immense currency exchange rate risk directly to the telecom sector. Consequently, the local currency's 50% depreciation since 2017 has effectively doubled nominal periodic payments. Finally, custom and import duties on essential network equipment reach up to 246%. Unlocking GDP growth through tax reform. The report features a rigorous econometric analysis to show how connectivity drives prosperity. Specifically, a 1% increase in mobile penetration raises real GDP per capita growth by 0.115% points. Therefore, improving connectivity could lift Pakistan's annual GDP per capita growth rate from its current baseline of 4.2% to nearly 4.5%. Frontier Economics modeled a clear path forward. The report proposes a major tax reform scenario to start in 2027. This reform will bring mobile sector taxes in line with the wider economy. The medium-term fiscal payoff. Lower taxes will immediately stimulate mobile usage. As a result, the reform will improve access to markets, enhance public services, reduce transaction costs, and support job creation. In addition, deeper digital adoption will accelerate the formalisation of the economy. Digital transactions create auditable records and improve tax compliance, which ultimately broadens the national tax base. Initially, the government will face a short-term decline in telecom tax revenues. The model projects that mobile sector tax revenues will drop by approximately $439 million per annum. This reduction equals about 1% of total government tax revenues. However, broader economic gains will eventually offset these losses. The modeling assumes a one-year lag for connectivity changes to boost economic activity. According to the projections, annual government tax revenues will turn positive by 2031. Furthermore, cumulative fiscal gains will fully break even in present value terms by 2035. Ultimately, the report urges the government to abandon short-term revenue targets. Instead, Pakistan must rebalance its tax policy away from sector-specific levies that directly inflate consumer prices. Embracing this change will safeguard the country's wider digitalisation agenda and unlock sustainable economic growth.

Imfinzi (durvalumab) in combination with etoposide plus either carboplatin or cisplatin has been recommended by the National Institute for Health and Care Excellence (NICE) for adults with untreated extensive-stage small cell lung cancer (ES-SCLC). [1]NICE's decision was informed by positive results from the CASPIAN Phase III trial, which showed that adding durvalumab to standard chemotherapy provides a clinically significant and sustained overall survival (OS) benefit at three years. [2]Tagrisso (osimertinib) has been recommended by NICE as an adjuvant treatment option after complete tumour resection in adult patients with stage IB-IIIA non-small cell lung cancer (NSCLC) whose tumours have epidermal growth factor (EGFR) exon 19 deletions or exon 21 (L858R) substitution mutations. [3]NICE’s decision was informed by positive results from the ADAURA Phase III trial, which demonstrated a statistically significant and clinically meaningful improvement in overall survival (OS), compared to placebo in the adjuvant treatment of patients with early-stage (IB, II and IIIA) EGFRm NSCLC after complete tumour resection with curative intent. [4]The UK has one of the worst five-year survival rates for lung cancer in Europe and 70% of lung cancers are diagnosed at an advanced stage (stages III-IV), which is associated with significantly poorer outcomes.[5],[6]London, UK, Wednesday 22 January 2025 – AstraZeneca announced that this week it has received two positive recommendations from the National Institute for Health and Care Excellence (NICE) for the treatment of lung cancer patients across England and Wales.1,3Tagrisso (osimertinib) received a positive recommendation from NICE for NHS use as an adjuvant treatment option after complete tumour resection in adult patients with stage IB-IIIA non-small cell lung cancer (NSCLC) whose tumours have epidermal growth factor (EGFR) exon 19 deletions or exon 21 (L858R) substitution mutations.3 Following a three-year period within the Cancer Drugs Fund (CDF), this recommendation means that osimertinib has successfully exited the CDF, enabling full baseline commissioning within NHS England for this patient population.[7]Imfinzi (durvalumab) was recommended by NICE for NHS use in combination with etoposide plus either carboplatin or cisplatin for adults with untreated extensive-stage small cell lung cancer (ES-SCLC).1Durvalumab in lung cancerLung cancer is the most common cause of cancer death in the UK, accounting for 21% of all cancer deaths.[8],[9] Nearly 50,000 people, more than 130 each day, are diagnosed with lung cancer each year in the UK.8 SCLC is a highly aggressive and fast-growing form of lung cancer that typically recurs and progresses rapidly.[10],[11] ES-SCLC occurs when the cancer has spread to the second lung or other parts of the body.[12]Dr Meenali Chitnis, Consultant Thoracic Medical Oncologist, Oxford University, said: “Extensive-stage small cell lung cancer (ES-SCLC) is a devastating diagnosis with a poor prognosis – with fewer than 5% of patients surviving beyond two years. Positive data from the CASPIAN Phase III trial marks an important breakthrough, providing clinicians with an effective treatment option of durvalumab with etoposide plus carboplatin or cisplatin.”The positive determination from NICE was based on results from the pivotal CASPIAN Phase III trial.[13],[14] Results of a two-year follow-up analysis, published in 2020, showed that first-line treatment with durvalumab plus platinum chemotherapy met the primary endpoint of the trial and demonstrated significant and clinically meaningful improvements in overall survival (OS) in patients with ES-SCLC versus chemotherapy alone (based on a hazard ratio [HR] of 0.73; 95% confidence interval [CI] 0.59-0.91; p=0.0047).13 The safety findings from the trial were consistent with the known safety profiles of durvalumab and chemotherapy.13Updated results from the CASPIAN Phase III trial presented at the European Society of Medical Oncology (ESMO) Congress 2021, showed that durvalumab plus platinum chemotherapy reduced the risk of death by 29% compared with chemotherapy alone (HR of 0.71; 95% CI 0.60-0.86; nominal p=0.0003) at three years.2,14 The updated median OS was 12.9 months versus 10.5 for chemotherapy.2,14Tom Keith-Roach, President, AstraZeneca UK, said: “This is fantastic news for lung cancer patients

Dame Sharon White is to take on the role of chairman of economic consultancy Frontier Economics, replacing Gus O'Donnell, who has held the post for the last 11 years.