5G Rollout in Pakistan: Policy Gaps and Economic Hurdles Take Center Stage

Pakistan is all set to launch 5G spectrum technology by April 2025. However, it has been facing significant hurdles. Foreign consultants engaged by the Pakistan Telecommunication Authority (PTA) have underscored critical policy, business, and administrative challenges that can impede the 5G rollout in Pakistan.

Consultants Recommend Local Currency Auctions to Boost 5G Rollout in Pakistan

The National Economic Research Associates (NERA), a US-sponsored consultancy firm, has pinpointed policy gaps, economic constraints, and administrative restrictions as key hurdles during consultations with stakeholders. NERA was hired to provide policy recommendations and a roadmap for the 5G auction. The firm shared initial findings with government officials last week. NERA reported advisory committee, led by Finance Minister Muhammad Aurangzeb about the critical issues including, underutilization of the existing 4G spectrum, internet restrictions, and the decision to auction the 5G spectrum in foreign currency rather than local currency.

The consultants highlighted that many countries have transitioned to local currency-based auctions, which encourage competition and promote investments in technology. However, Pakistan’s dependence on foreign exchange auctions may limit bidders and inhibit investment, which is no doubt a substantial concern for the upcoming auction. Even though, cellular operators raised concerns about insufficient use of the 4G spectrum launched three years ago, further emphasizing inefficiencies that need to be addressed before introducing 5G.

NERA has been directed to create a model that addresses these objectives. Their final proposals are anticipated to guide sector reforms, allowing a successful 5G rollout while supporting socio-economic growth. Anyhow, the government will have to play an important role in addressing these barriers to determine the success of the 5G spectrum auction. April 2025 is fast approaching, and stakeholders must collaborate to overcome challenges and unlock the 5G potential for nationwide connectivity and development.