Universal Service Fund fails to launch projects amid telecom contributions

In Pakistan, the Universal Service Fund has failed to initiate any projects for a duration of two years, raising concerns about its effectiveness. The fund, which relies on mandatory contributions from four major telecom operators, has seen these companies contribute approximately 1.5 percent of their total revenue, amounting to around Rs26 billion. Despite the substantial financial support, no progress has been made on the ground. The situation is exacerbated by the government’s failure to appoint representatives from the telecom industry to the USF board, which is critical for ensuring that the interests and insights of these operators are considered in decision-making processes. This absence of telecom industry representation seems to restrict the effectiveness and operational accountability of the USF, leading to a lack of confidence among stakeholders in the telecom sector. As the telecom revenue over the past two years totaled approximately Rs1.77 trillion, the lack of any launched projects stands in stark contrast, highlighting potential mismanagement of the funds and the urgent need for reform in the approach toward the USF projects. The repeated failure to launch projects has prompted industry leaders to question whether the funds are being utilized appropriately, and calls for governmental accountability are growing among telecom operators and customer advocacy groups alike. The Telecom operators express frustration at the current state of affairs, advocating for the establishment of a transparent regulatory framework that ensures the USF can fulfill its intended purpose of expanding telecom services to underserved populations in a way that aligns with national development goals.