Pakistan’s Digital Future at a Crossroads: Insights from GSMA’s Julian Gorman

In an exclusive Q&A with Phone World, Julian Gorman, Head of Asia Pacific at GSMA, shares his vision for how Pakistan can fast-track its digital transformation. From unlocking new revenue streams through the GSMA Open Gateway to tackling the country’s 52% mobile usage gap, GSMA’s Julian Gorman outlines the spectrum reforms, policy shifts, and trust-building measures needed to position Pakistan as a regional hub for 5G, AI, and developer-led innovation.

PW: How is GSMA Open Gateway helping countries like Pakistan unlock new revenue streams and developer-led innovation?

JG: The GSMA Open Gateway initiative is driving enterprise-led innovation in countries like Pakistan by exposing core network capabilities through APIs. Telecom operators are providing aggregators and system integrators (SIs) with tools to build new digital services. While the APIs form a foundation, successful implementation often requires tailored solutions, like Scam Signal, to address specific challenges such as fraud prevention.

With 48 common network APIs available, including 13 focused on helping tackle fraud, GSMA Open Gateway is helping to improve security and trust in digital services. Pakistan is one of 14 Asia Pacific markets participating, giving local developers access to the same tools that are becoming the standard across the region.

By adopting GSMA Open Gateway, Pakistani operators can tap into new revenue sources, moving beyond traditional telecom services. Businesses can leverage the APIs to accelerate new services with built-in features like device verification and identity authentication, strengthening the digital ecosystem and driving adoption.

This enhanced API access supports local solutions in fintech, e-commerce, logistics, and health tech, boosting Pakistan’s digital economy and empowering its developers to innovate on a global scale.

By adopting GSMA Open Gateway, Pakistani operators can tap into new revenue sources, moving beyond traditional telecom services.

PW: What structural reforms within Pakistan’s telecom and ICT sectors are needed to lay the groundwork for a robust digital future?

JG: Pakistan must urgently assign more IMT spectrum to support 5G readiness, as it currently has one of the lowest levels of assigned spectrum in the region. The planned 5G multiband auction must move forward without further delay, as current postponements linked to merger and licensing issues are holding back national progress.

Spectrum pricing should also be set for growth, not short-term revenue, to encourage investment and ensure broader coverage and faster speeds. More mid-band spectrum should be released, which is essential for 5G and future digital services. Spectrum payments should be made in local currency, to reduce financial risk for operators and encourage participation.

Pakistan must urgently assign more IMT spectrum to support 5G readiness, as it currently has one of the lowest levels of assigned spectrum in the region.

Pakistan needs to publish a national spectrum roadmap, providing long-term clarity to guide operator investment and 5G rollout. The country should enable spectrum sharing and trading, to promote more efficient use of spectrum resources and improve service delivery.

Moreover, addressing the mobile internet usage gap is critical, with 52% of the population living under coverage but not using mobile internet – reflecting barriers like affordability, digital literacy, and lack of trust that must be tackled in parallel with infrastructure reforms.

PW: How are mobile technologies and services transforming Asian economies and is Pakistan at risk of missing out?

JG: In 2024, mobile technologies and services added $950 billion to the Asia Pacific economy – equivalent to 5.6% of regional GDP – with expectations to grow to $1.4 trillion (6.6% of GDP) by 2030, driven by 5G, IoT, and AI expansion. The mobile sector also underpins millions of jobs, spurs public revenues, and powers economic inclusion and smart digital infrastructure.

Despite strong smartphone adoption (68%) and network coverage (81%), only 29% of the population used mobile internet in 2024, resulting in a striking usage gap of 52% – among the highest in the Asia Pacific region. This highlights that Pakistan is in danger of being left behind if this gap remains unaddressed.

PW: How can the government incentivize investment in underserved areas to bridge the urban-rural digital divide?

JG: To bridge the urban-rural digital divide, governments can take key actions to incentivize investment in underserved areas, where returns are often limited. High sector-specific taxes and steep spectrum costs make such investments financially unsustainable for Mobile Network Operators (MNOs). While MNOs are keen to extend services to rural and lower-income regions, the financial burden of these costs often outweighs the returns, making expansion unfeasible. Rationalising taxes on mobile services and devices can reduce the financial burden on both consumers and operators, making rural markets more attractive for investment.

A national spectrum roadmap, along with enabling spectrum sharing, can mitigate business risk by providing clarity on long-term spectrum availability and usage, helping operators optimize network efficiency. This roadmap would support better planning for rural expansion and ensure more sustainable investment in underserved areas. Fiscal incentives, such as tax credits for infrastructure investment, would further encourage operators to extend networks into remote areas.

Rationalising taxes on mobile services and devices can reduce the financial burden on both consumers and operators, making rural markets more attractive for investment.

Lessons from Vietnam offer valuable insights. After a failed auction in 2023, the government acted by reducing spectrum costs by up to 90%, leading to the successful completion of auctions in 2024. Furthermore, a subsidy covering 15% of base station equipment costs incentivized operators to build 20,000 base stations by the end of 2025, driving significant infrastructure rollout in less profitable areas.

PW: What safeguards are essential to ensure that rapid digital adoption in Pakistan?

JG: To ensure rapid digital adoption in Pakistan, safeguarding consumer trust is critical. Online scams are a significant barrier, contributing to the usage gap and discouraging people from going online. Participation in the GSMA APAC Cross-sector Anti-Scam Taskforce (ACAST) marks an important step toward regional collaboration in tackling fraud.

Online scams are a significant barrier, contributing to the usage gap and discouraging people from going online.

Scaling the adoption of GSMA Open Gateway’s anti-fraud APIs is key to unlocking the power of network and helping the ecosystem combat scams and foster digital trust. In parallel, strong regulatory support for consumer protection and digital security is essential to maintaining and strengthening user confidence in digital platforms.

PW: What role can research institutions and play in fostering a pipeline of digital talent and innovation?

JG: Pakistan has a large base of over 600,000 IT professionals, yet their potential remains underused due to weak digital infrastructure and policy gaps. Research institutions can drive innovation by partnering with industry, identifying local challenges, and developing context-relevant digital solutions.

A stronger R&D ecosystem, supported by fiscal incentives and policy clarity, can catalyse innovation and encourage more homegrown digital services. Investments in infrastructure and affordable connectivity are necessary for researchers and innovators to operate at full potential.

PW: How can Pakistan’s startup ecosystem be better integrated into national digital transformation plans?

JG: Pakistan’s startup ecosystem can play a critical role in the country’s digital transformation by contributing to localised solutions, especially in sectors like fintech, health, and education. For startups to thrive, they need to be integrated into broader national digital strategies that provide access to core infrastructure, policy support, and a competitive digital marketplace.

Government and industry collaboration is essential to creating an environment where startups can innovate quickly, securely, and sustainably. By fostering a supportive ecosystem, startups can unlock new revenue models, drive faster innovation, and contribute significantly to the digital economy.

Government and industry collaboration is essential to creating an environment where startups can innovate quickly, securely, and sustainably.

PW: Given Pakistan’s significant mobile usage gap, what immediate policy actions can accelerate mobile internet adoption, especially among women, youth, and rural populations?

JG: Pakistan faces barriers like affordability, digital literacy, and trust. Suggested immediate measures include:

• Spectrum reform: Lower spectrum costs, release more mid-band bands, facilitate spectrum sharing/trading, and publish national roadmap – making networks both affordable and future-ready.
• Fiscal reform: Reduce the heavy tax burden (e.g., 33% combined tax on mobile services, up to 40% on devices), rationalize duties, remove punitive taxes like advance tax on recharges – making access more affordable.
• Device affordability: Introduce smartphone financing policies to facilitate access for underserved groups.
• Digital literacy and inclusion programmes: Invest specifically in digital education, especially targeting women, youth, and rural areas, building on recent gains in reducing the mobile gender gap (women’s mobile internet usage rose from 33% to 45%).
• Trust restoration: Scale anti-scam protections via ACAST (the anti‑scam taskforce).

PW: What are the long-term risks of not aligning Pakistan’s digital economy with global benchmarks and standards?

JG: Pakistan is already falling behind regional peers in 5G readiness and spectrum allocation, while other countries are using digital tools to power smart cities and industries. Delays in reform will reduce competitiveness, discourage investment, and limit participation in the growing Asia Pacific digital economy.

Underutilisation of Pakistan’s IT talent and low mobile internet usage rates could persist if global standards for affordability, accessibility, and security are not met. Without alignment, Pakistan may miss opportunities for cross-border collaboration, digital exports, and tech-driven economic growth. Inaction risks widening the digital divide, further isolating vulnerable populations and slowing national development.

Underutilisation of Pakistan’s IT talent and low mobile internet usage rates could persist if global standards for affordability, accessibility, and security are not met.

PW: With Asia Pacific accelerating in 5G and AI, what would it take for Pakistan to position itself as a regional hub for emerging technologies and developer-led services?

JG: To harness its strengths – e.g., a 600,000-strong IT workforce and vibrant freelance ecosystem – and to stay competitive amid Asia Pacific’s accelerating 5G and AI transformation, Pakistan needs to:

• Reform spectrum policy to make connectivity affordable and future ready.
• Accelerate 5G deployment through smart auctions and infrastructure investment.
• Reduce the tax burden on operators and consumers.
• Embrace the API economy and GSMA Open Gateway to drive innovation.
• Streamline telecom regulation and policy implementation.
• Invest in digital literacy and inclusion, especially for women.
• Scale up anti-scam protections through ACAST and beyond.

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