PTA Asked Govt to Slash Taxes for Smooth 5G Launch

Pakistan is preparing for the launch of 5G services next year, which is expected to bring major improvements to mobile phone features and internet connectivity. The government, along with the Pakistan Telecommunication Authority (PTA) and the Ministry of Information Technology and Telecom, is working to make this rollout smooth and effective. As the rollout is approaching, PTA urged the government to slash taxes for a smooth 5G launch.

The Prime Minister has set a February 2026 deadline for the auction of the 5G spectrum. This step is seen as a major milestone in advancing mobile-based services across the country. The PTA believes that the introduction of 5G will encourage the use of advanced mobile services and boost digital adoption.

PTA Asked Govt to Slash Taxes for Smooth 5G Launch

Currently, Pakistan has around 196 million mobile subscribers, including 148 million mobile broadband users. However, less than five percent of all mobile phones in the country are 5G-enabled. The PTA has urged manufacturers and the government to increase the availability of 5G-compatible devices before the official launch. This is important because if devices remain expensive, users may hesitate to upgrade.

The transition to 5G will allow new features such as e-SIMs, NFC-based e-banking, wireless charging, and other smart services. These improvements will be possible because manufacturers are adopting advanced chipsets and processors required for 5G technology. According to Zeeshan Miannoor from Inovi Telecom, the extra cost of 5G chipsets may range from $30 to $200, depending on the model. While cameras and speakers will remain similar, the upgraded motherboard will enable advanced features like nano-banking and improved connectivity.

The Pakistan Mobile Phone Manufacturers Association (PMPMA) reports that nearly 40 percent of mobile users still rely on feature phones. Around 10 percent of the population does not own any phone at all. Local production includes 1.2 million smartphones and 1.5 million feature phones per month, totaling roughly 30 million devices annually. As production shifts from 4G to 5G, the cost of new smartphones is expected to rise, which could limit consumer adoption if prices remain high.

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The PTA has highlighted that heavy taxation on mobile phones and telecom equipment is a major barrier to expanding connectivity. Taxes on imported components, which can reach about 19.5 percent, make 5G phones more expensive. The authority recommends lowering or removing these taxes to make devices more affordable. Reduced costs would not only increase smartphone adoption but also expand internet usage, creating more revenue for the government through digital services.

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Retired Brigadier Amer Shahzad, PTA’s director general, emphasized that manufacturers must prepare in advance. Consumers need affordable 5G-compatible phones when the service launches. If prices are too high, users may continue using older 4G or feature phones, limiting the benefits of 5G.

The move to 5G is expected to transform mobile communication in Pakistan. New services, faster internet speeds, and advanced applications will enhance connectivity for millions. However, a successful rollout will depend on affordable devices, supportive government policies, and active preparation by manufacturers. By addressing taxation and cost challenges now, Pakistan can ensure a smoother transition to 5G and expand its digital ecosystem.