PTA Revenue Declines as Delayed 5G Auction Impacts Growth

The Pakistan Telecommunication Authority (PTA) has experienced a significant decline in revenue over the past three years, mainly because the long-awaited 5G spectrum auction has not yet taken place. According to the latest report issued by the Auditor General of Pakistan, the regulator’s financial performance has weakened considerably, raising concerns about the future of Pakistan’s telecommunications sector.

The report shows that PTA’s income dropped by more than 62 percent during the period under review. Revenue decreased from Rs94.1 billion in the fiscal year 2022-23 to Rs35.3 billion in 2024-25. This sharp decline highlights the financial impact of delays in introducing 5G technology, which was expected to generate substantial income through spectrum licensing while also supporting digital growth across the country.

PTA Revenue Declines as Delayed 5G Auction Impacts Growth

At the same time, PTA’s operating expenses have continued to rise. The authority’s expenditure increased from Rs3.321 billion to Rs5 billion over the same period. Higher employee salaries, increased administrative costs, and growing legal expenses were the main reasons behind the increase. As a result, the regulator’s overall financial position has become weaker, with spending rising while income continues to fall.

The decline in PTA’s earnings has also reduced its contribution to the national treasury. Total revenue transferred to the government fell from Rs109.254 billion in 2022 to Rs34.556 billion in 2025, representing an overall decrease of nearly 68 percent. Similarly, the surplus funds transferred to the Federal Consolidated Fund dropped from Rs102.542 billion to Rs28.431 billion. These figures demonstrate how delays in important policy decisions can directly affect government finances.

The Auditor General also warned that the situation could become even more serious if corrective measures are not taken soon. According to the report, PTA’s annual revenue may decline further to around Rs4.637 billion if the 5G spectrum auction continues to face delays and other financial issues remain unresolved. Such a decline could limit the authority’s ability to support future telecom development and improve digital infrastructure.

Apart from financial concerns, the audit identified several operational challenges. Broadband services in many rural and remote areas continue to lag behind urban regions in both speed and quality. This digital gap limits access to online education, business opportunities, and government services for many citizens. The report also pointed to unresolved court cases that have delayed the recovery of Annual Regulatory Dues, resulting in additional revenue losses for the government.

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The audit further highlighted governance issues within the regulator, including weaknesses in financial management and accounting practices. Unapproved accounting policies and administrative shortcomings have raised concerns about transparency and efficiency. These issues underline the need for stronger oversight and improved institutional management.

To strengthen PTA’s financial health and support the country’s digital future, the Auditor General recommended several measures. These include conducting timely spectrum auctions, improving the recovery of outstanding dues, strengthening action against telecom fraud, enhancing service quality monitoring, regulating emerging information and communication technology infrastructure, and maintaining better control over employee-related expenses.

The report makes it clear that timely policy decisions and stronger governance are essential for improving Pakistan’s telecommunications sector. Moving forward with the 5G auction and implementing the recommended reforms could help restore PTA’s financial stability while supporting technological progress and economic development across the country.