Internet to Get Cheaper? Govt Waives ROW Charges Amid Calls to Cut 19.5% Internet Tax

The government has waived Right of Way (ROW) charges for internet infrastructure across the country, in a bid to reduce operational costs for telecom operators and accelerate the expansion of broadband networks. The decision was confirmed following a recent meeting between government officials and industry representatives, where the need for affordable internet was at the forefront.

The waiver of ROW charges is expected to ease the financial burden on telecom companies, which previously faced high costs when laying fiber optic cables. This step is being viewed as a significant move to improve digital connectivity and support Pakistan’s ambitions of enhancing its IT and telecom sectors. The Wireless and Internet Service Providers Association of Pakistan (WISPAP), which has long championed digital reform, has welcomed the decision. WISPAP Chairperson Shahzad Arshad called the waiver “a visionary step” that will spur broadband deployment, particularly in underserved rural areas, by easing financial burdens on ISPs and ultimately benefiting consumers.

Still, the association emphasised that this measure alone won’t lower consumer prices unless the 19.5% provincial sales tax on internet services is also addressed. WISPAP urged provincial governments in Punjab, Sindh, and Khyber Pakhtunkhwa to eliminate the tax, warning that without such relief, monthly internet bills will remain unaffordable for many.

“Removing ROW charges is progress—but affordable internet requires both infrastructure reform and tax relief,” Arshad explained. “Millions of Pakistanis—students, freelancers, small businesses—deserve better access. Digital affordability is no longer a luxury; it’s essential.”

WISPAP also praised the role of the Ministry of IT & Telecommunication and the Prime Minister’s directives in aligning Pakistan’s digital policy with international trends seen in India, Bangladesh, and parts of Europe.

Why This Matters for the Economy

• Operational Relief for ISPs: With ROW savings, providers can invest more in faster, more reliable connectivity.

• Tax Relief Means Real Savings: Cutting the 19.5% internet tax would result in tangible monthly savings and boost adoption.

• Macro Impact: Lower internet costs can energise e-learning, freelancing, e-commerce, and startup ecosystems—fuelling growth in Pakistan’s digital economy.

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