The restrictions imposed for the letters of credit (LCs) facility for the telecom sector, according to IT & Telecom Minister Syed Aminul Haque, are insufficient.
“Without much-needed technical parts there are fears of service disruptions in many areas,” Mr Haque warned while presiding over the 44th Policy Committee meeting of the Universal Service Fund (USF).
He claimed that the restricted LC licenses were impeding the import of equipment for upgrading mobile networks and interfering with the general efficiency of the IT and telecom industries.
“Telecom companies were facing difficulty in importing parts and equipment due to limited permission of LCs and it may also result in a delay in projects for the provision of 4G services in far-flung areas of the country,” the minister noted.
The authorities reported to the meeting that telcos, IT firms, and their backend equipment suppliers had complained that it was impossible for them to import even the basic hardware required to run systems.
The minister promised to speak with the Ministry of Finance again and let them know about the critical circumstance.
Out of the budget of Rs32.13 billion set aside for the Universal Service Fund (USF) for 2022–2023, the meeting approved the release of a development fund of Rs5 billion for the second and third quarters, while Rs8.25 billion had already been released for the first quarter.
