Pakistan’s Telecom Revenues Decline Despite Record Data Use and Rising Subscribers

Pakistan’s telecom sector is facing one of its most challenging phases in recent years. Despite more people coming online and data usage reaching record levels, Pakistan’s telecom revenues have witnessed a decline. According to new figures shared by the Pakistan Telecommunication Authority (PTA), telecom revenues have dropped sharply from Rs 955 billion in 2023-24 to Rs 803 billion in 2024-25.

This fall has raised serious concerns among industry experts, who warn that the sector may be heading toward a crisis if immediate reforms are not introduced.

PTA data shows that Pakistanis consumed an unprecedented 27,897 PB of data this year, while broadband subscriptions surged to 150 million. Overall telecom users climbed to 200.02 million, and broadband penetration reached 60.8%. The number of cell sites also increased to 58,423, indicating continuous network expansion.

Pakistan’s Telecom Revenues Decline Despite Record Data Use and Rising Subscribers

But despite this growth, telecom companies are earning less than before. Experts describe this as a troubling paradox: usage is rising, networks are expanding, but money is declining.

Why Are Revenues Falling?

Analysts say the revenue drop highlights deep structural weaknesses in the sector. Operators are handling more traffic than ever but earning less per user. This is mainly due to:

• Falling voice and data ARPU (Average Revenue Per User)

• High inflation and rising operational costs

• Price wars among operators

• Heavy taxation on SIMs, usage, and recharge

• High dollar-linked expenses, such as spectrum fees and imported equipment

Industry insiders also note that Pakistan already had one of the lowest ARPUs in the region. Now, with consumer purchasing power weakening, subscribers are spending even less.

Telecom companies say that while data consumption has increased, they cannot raise prices in line with rising costs. As one official stated during a policy dialogue, “The sector is running on thin margins, and the current environment is unsustainable without pricing reforms.”

See also: PTA Slaps Rs 68.9M in Fines on Telcos for Poor Network Performance as 9,000 Mobile Sites Struggle Nationwide

Interestingly, the government’s earnings from the telecom sector have increased. Telecom contribution to the national exchequer rose from Rs 195.1 billion last year to Rs 271 billion this year. This increase, however, is seen by experts as worrying because it reflects the growing tax burden on an industry whose financial health is rapidly deteriorating.

The decline in revenue comes at a time when Pakistan urgently needs digital infrastructure upgrades, spectrum refarming, and network modernisation to keep up with regional benchmarks. Stakeholders urged the government to introduce a sector-wide fiscal relief package, rationalise taxes, and adopt a long-term digital policy framework to arrest declining revenues and protect Pakistan’s telecom backbone from further erosion.