Telecommunications is one of the growing industries of Pakistani economy since this sector is opened to private organizations; this sector grew by approximately 80% in 2007, while the average growth rate of the sector has been 100% for the last four years. As of April 2010, there were 97.6 million mobile phone users in Pakistan and currently this number has increased to over 17 million. Revenue from this sector grew by approximately 20% in 2009 and generated Rs327.8 billion in the Pakistani economy. In the year 2008-2009 the total revenue collected by the Government of Pakistan from this sector was more than Rs. 100 billion. Telecommunications are heavily taxed and are the most documented sector of the economy compared to others. In terms of taxes, Pakistan's mobile sector continued to be a major contributor to the national exchequer. At the end of the year, the government collected Rs 71.95 billion as tax collection from the mobile sector. Telecommunications have become one of the basic necessities and an essential part of our lives; people feel comfortable in their lives with these structures. The main reason for this is connectivity and information sharing. However, telecom has also been one of the most affected sectors, due to its share of problems and issues such as double taxation domain where both the federation and provinces are keen to tax the sector. Another obstacle is the heavy taxation such as federal excise duties with an increasing trend. This industry started in 1947 from the humble beginnings of Post and Telegraph Department and in 1965, the creation of Pakistan Telephone and Telegraph Department occurred. In 2001, PTCL launched its mobile and data services subsidiaries under the name of UFONE and PAKNET respectively, PakNet was later disbanded, while Ufone remained in...... half of the paper...... will act as trigger for brand managers to make decisions in order to improve sales and devise strategies using the most competitive, long-lasting and successful promotional tools. 1.6 LIMITATIONS OF THE STUDY: This research studies the effect of sales promotional tools such as promotional discounts, free trial, coupons and in-store display, which influence the purchasing behavior of the cellular industry. The data was collected from Karachi-Sindh with a sample of 300 individuals aged between 20 and 40 years, so this may not give a clear picture of rural and other suburban areas of our country and due to limitations of age, will not meet the impact of another available portion of the population that is below or above the age range, the above limitations are due to time and lack of resources available to reach other demographic locations.