Mobile Users Bear Rs 3.38 Trillion Tax Burden, Yet 5G Dreams Remain Distant

The latest data from the Ministry of Finance shows that Pakistan’s mobile phone users have paid a staggering Rs 3.38 trillion in taxes over the past five years. Despite this hefty contribution, the country has made limited progress in upgrading its telecom infrastructure, including the delay in 5G rollout.

According to the official data, there are around 200 million cellular subscribers in Pakistan, showcasing significant mobile penetration. However, investment in next-generation technologies like 5G remains minimal, which is also evident 5G readiness report from GSMA. Besides, analysts also point out that heavy taxation on mobile devices and telecom services stifle innovation and negatively impacts the development of a robust telecom ecosystem

It’s not the end of the story! The telecom sector faces additional hurdles, including high spectrum fees and lack of incentives for telecom operators to invest in advanced networks. This has left Pakistan lagging behind other regional countries like India, where 5G adoption has accelerated due to proactive policies and strategic investments.

Moreover, the tax revenue collected from mobile users has not translated into better digital and telecom infrastructure, as users on social media and community forums heavily criticize the quality of cellular services. Experts claim that the absence of a clear 5G strategy and low funding for network expansion are key reasons for the delay. Meanwhile, consumers continue to bear the brunt of high service charges and limited connectivity improvements.

While the country aims to position itself as a digital economy under the ‘Digital Pakistan Initiative,’ the disconnect between heavy consumer taxation and low infrastructure investment threatens to undermine these ambitions. Thus, bridging this gap requires targeted reforms, reduced taxation, and prioritization of the telecom sector.

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5G in Pakistan: All You Need to Know!