Pakistan Risks Falling Behind in 5G Race Amid Spectrum Crisis & Rising Costs

Pakistan risks losing further ground in the regional digital race as its telecom sector struggles with one of the lowest spectrum allocations in South Asia, rising operational costs, and regulatory hurdles. The Pakistan Telecommunication Authority (PTA), in a recent briefing, cautioned that these constraints could delay the country’s 5G rollout and erode the economic gains expected from faster broadband adoption.

5G Policy and Auction Status

The Government of Pakistan’s 5G trial policy was first issued in October 2017, covering 2600 MHz, 3500 MHz, and mmWave bands. The PTA released a test and trials framework in 2019, enabling operators to conduct successful pilots across the country.

The spectrum auction process began in 2023, with an Advisory Committee (AC) overseeing its progress. To design the auction and assess spectrum value, PTA engaged the US-based consultant NERA in November 2024.

Untapped Economic Potential

PTA estimates that a 10% increase in mobile broadband penetration could significantly transform Pakistan’s economy by:

• Boosting GDP growth by 1.5%–2.4%

• Raising exports by 1.9%

• Increasing FDI inflows by 2%

• Creating 3.1%–13.2% new jobs

Officials stressed that unlocking these benefits depends on timely reforms and efficient rollout of 5G.

Spectrum Deficit vs Regional Peers

Pakistan remains one of the most “spectrum-starved” countries in the region. To date, only 274 MHz of spectrum has been auctioned, compared to:

• Saudi Arabia: 1200 MHz

• Thailand: 600 MHz

• Bangladesh: 600 MHz

The PTA acknowledged that additional IMT spectrum will be auctioned to address congestion, improve quality of service, and enable a nationwide 5G launch. Globally, 101 countries have already launched 5G, underlining Pakistan’s delay.

Regulatory Initiatives

To support the sector, PTA highlighted several regulatory measures under implementation:

• Telecom Infrastructure Sharing Framework

• Critical Telecom Data & Infrastructure Security Regulations (CTDISR)

• IP Whitelisting Regulations 2024

• Cyber Security Strategy (2023–2028)

• Licensing for VPNs and IoT

Other initiatives include:

• National roaming framework to reduce industry costs

• SIM security rules to curb fraud

• Voice over WiFi (VoWiFi) to improve indoor coverage

• 3G sunset to enhance 4G experience

• Wi-Fi 6E & 7 spectrum availability (5925–6425 MHz)

• Fixed Wireless Access (FWA) in AJK to tackle connectivity gaps

• Online licensing systems (EODB) for ease of doing business

• Content management efforts, including blocking 45,904 unlawful URLs in 2025

International Connectivity via Submarine Cables

Pakistan is linked to global internet hubs through submarine cables at Karachi, connecting to Oman, Fujairah, Marseilles, and Singapore.

Table — Pakistan’s Submarine Cable Capacity

Total Installed Capacity: 17.239 Tbps
Total Activated Capacity: 12.102 Tbps

Additionally, the Africa1 (PTCL) and SMW6 (TWA) cable systems are under development, aimed at boosting resilience.

Challenges Facing Pakistan’s Telecom Sector

Sector-Wide Challenges

• Reliance on only 4 IMT bands, far fewer than regional peers

• Delayed adoption of advanced technologies

• High CAPEX requirements

• Limited Fiber-to-the-Site (FTTS) expansion

• Right of Way (RoW) hurdles

• Low smartphone penetration

• Power shortages and insufficient backhaul capacity

Industry-Specific Challenges

• Rising operating costs due to PKR depreciation and fuel price hikes

• License fee increases: USD 291m (PKR 58bn) in 2004 → USD 486m (PKR 284bn) in 2023

• Lowest data/voice tariffs in the region, undermining profitability

• Declining Average Revenue Per User (ARPU) at just USD 1.1 per month

• Over 37% tax burden on telecom services

• Financing constraints: equipment and license payments in USD while revenues remain in PKR

The PTA stressed that Pakistan’s telecom sector can be a driver of economic growth, exports, and job creation, but only if critical gaps are addressed. Without swift action on spectrum allocation, infrastructure sharing, taxation reforms, and investment facilitation, Pakistan risks being left behind in the digital economy as regional competitors advance.

Also read:

PTA Report: 17,800 New Mobile Sites Established in Last Decade; Is It Sufficient for 5G?