Pakistan Telecom Industry Calls for Tax and Infrastructure Reforms After Budget 2026–27

The mobile phone manufacturing and telecom industry in Pakistan has expressed a mixed reaction to the federal budget 2026-27. While industry representatives welcomed several positive measures aimed at supporting the digital economy and encouraging investment, they also noted that many key proposals from the sector were not included in the final budget.

The Telecom Operators Association (TOA), which represents both local and international mobile phone and telecom companies, stated that the government has taken some encouraging steps. However, it emphasized that additional reforms are still needed to fully support digital growth in the country.

Pakistan Telecom Industry Calls for Tax and Infrastructure Reforms After Budget 2026–27

According to the association, the reduction in customs duty on raw materials used in local mobile phone manufacturing is a positive development. This step will make smartphones more affordable and improve access to digital services across Pakistan. The industry also appreciated the easing of the super tax, calling it a supportive move for improving the investment climate.

Despite these positive measures, the telecom and mobile phone sector expressed disappointment over the omission of several important recommendations. These include reductions in advance and withholding taxes on mobile users, lower duties on optical fiber equipment, and broader reforms to create a more business-friendly environment.

The TOA highlighted that Pakistan currently has around 206 million mobile subscribers, while only about 7.7 million individuals are active taxpayers. As a result, millions of mobile users continue to bear tax deductions on services without being able to claim refunds. The association believes this creates an unfair burden on the majority of consumers.

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Kamran Ahmed, Secretary General of TOA, stated that the telecom sector is a key foundation of Pakistan’s digital economy. He emphasized that policies which make mobile services more affordable, simplify investment procedures, and accelerate infrastructure development can significantly benefit not only the telecom industry but also the broader economy. According to him, such reforms can improve financial inclusion and support growth in education, healthcare, and e-commerce sectors.

On a positive note, the association welcomed the government’s recent decision to make the Right of Way (RoW) for telecom infrastructure free of charge. The industry believes this move will play an important role in speeding up the expansion of broadband and fiber optic networks across the country. Improved infrastructure will enhance internet connectivity and support long-term digital development goals.

Overall, the telecom and mobile phone industry described the budget as a balanced mix of progress and missed opportunities. Stakeholders appreciated certain incentives for local manufacturing, but they continue to call for deeper tax reforms and stronger support for digital infrastructure.

In conclusion, the sector remains hopeful that future policy adjustments will address its concerns and help unlock the full potential of Pakistan’s growing digital economy.