Govt fixes dollar rate, shifts to KIBOR for 5G

The Ministry of IT and Telecom has acknowledged long-standing demands of the telecom sector by easing payment terms and fixing exchange and interest rates in its policy directive for the upcoming next-generation mobile spectrum auction, a move that clears the way for the Pakistan Telecommunication Authority to issue the Information Memorandum for existing operators and new entrants to participate in the process. Under the approved framework, the spectrum fee has been denominated in US dollars, but the exchange rate will be calculated at the National Bank of Pakistan's TT selling rate prevailing at the close of business on the day preceding the auction date. At least 50% of the spectrum price will be payable within one year of the licence issuance date, while the remaining 50% will be paid in five equal annual instalments carrying interest at the KIBOR offer rate plus three percentage points.