Government Targets Rs27.7bn Revenue from 4G/5G Licenses in FY2026-27

The federal government has projected significant revenue generation from the telecommunications sector in the upcoming fiscal year, budgeting Rs27.685 billion from 4G/5G licenses under the non-tax revenue head for FY2026-27.

According to the Budget 2026-27 documents, the estimated revenue from 4G/5G licenses is higher than the Rs22.049 billion originally budgeted for the outgoing fiscal year. The figure for FY2025-26 was later revised upward to Rs24.973 billion, reflecting stronger-than-expected receipts from the telecom sector.

Government Targets Rs27.7bn Revenue from 4G/5G Licenses in FY2026-27

The government has also projected increased earnings from the Pakistan Telecommunication Authority (PTA) surplus under the head of Income from Property and Enterprises. Revenue from PTA surplus is expected to reach Rs1.3 billion during FY2026-27, compared with the budgeted Rs1.1 billion for the outgoing fiscal year. The revised estimate for FY2025-26 stands at Rs1.64 billion.

Meanwhile, revenue collection from the mobile handset levy is expected to rise further in the next fiscal year. The government has budgeted Rs14 billion under this head for FY2026-27, compared with Rs12 billion budgeted for FY2025-26, indicating growing imports and registrations of mobile devices in the country.

Budget documents further show that receipts from Regulatory Authorities (Surplus) have been projected at Rs4.736 billion for FY2026-27. The amount is lower than the Rs6.239 billion originally budgeted for the current fiscal year but remains higher than the revised estimate of Rs3.387 billion.

The telecom sector continues to be an important contributor to government revenues through licensing fees, regulatory charges, and various levies. The higher revenue targets for FY2026-27 underscore the government’s expectations of continued growth in digital connectivity, mobile penetration, and future spectrum-related activities, including the anticipated rollout of next-generation telecom services.

Industry observers believe that the projected increase in revenue from telecom licenses and handset levies reflects the government’s broader strategy to expand the digital economy while leveraging the sector as a key source of non-tax revenue.