Telecom Companies Contribute Rs18.28 Billion to USF and R&D Funds in FY2025-26

Telecom companies in Pakistan contributed Rs18.28 billion to the Universal Service Fund (USF) and Research & Development (R&D) Funds during the fiscal year 2025-26, according to the Ministry of Information Technology and Telecommunications.

Telecom Companies Contribute Rs18.28 Billion to USF and R&D Funds in FY2025-26

The two funds had a combined balance of Rs51.91 billion as of June 30, 2026, highlighting the significant amount collected from the telecom sector to support connectivity and technology development in the country.

Rs13.69 Billion Collected for USF

According to a written reply submitted by Minister for Information Technology and Telecommunications Shaza Fatima Khawaja to the National Assembly, telecom operators contributed Rs13.696 billion to the USF during FY2025-26.

The contribution was collected under the 1.5 percent USF levy imposed on telecom operators.

The USF plays an important role in improving telecom infrastructure in areas where commercial operators may have limited interest in investing. The fund is mainly used to support connectivity and network expansion in underserved and unserved parts of the country.

R&D Fund Receives Rs4.58 Billion

Telecom companies also contributed Rs4.584 billion to the R&D Fund during the same financial year.

The ministry’s figures show that the R&D levy rate stands at 0.5 percent. The fund supports research and development activities in Pakistan’s information technology and telecommunications sectors.

These investments are aimed at supporting technological development and strengthening the country’s digital and telecom ecosystem.

Combined Fund Balance Reaches Rs51.91 Billion

The government said the USF had a closing balance of Rs36.633 billion as of June 30, 2026.

Meanwhile, the R&D Fund held Rs15.276 billion on the same date. Together, the two funds had Rs51.909 billion in available balances.

The figures show that telecom-sector levies continue to generate substantial financial resources for digital infrastructure and technology-related initiatives.

Focus on Underserved Areas

The information was provided in response to questions in the National Assembly regarding telecom collections, fund balances and incomplete or delayed network expansion projects.

The questions also covered projects in underserved areas of Balochistan, Khyber Pakhtunkhwa and rural Sindh.

The ministry provided details related to operator-wise contributions to the USF and R&D Fund, along with information about USF-funded network expansion projects that remain incomplete or have faced delays.

Improving telecom coverage in these areas remains important as more government, education, business and financial services move online.

Funds Could Support Digital Connectivity

The latest figures underline the role of telecom-sector levies in funding projects that may otherwise struggle to attract commercial investment.

The USF is designed to expand telecommunications infrastructure in areas with limited connectivity, while the R&D Fund is intended to encourage research and development in the IT and telecom sectors.

With more than Rs51 billion held across the two funds, their effective use could play an important role in improving connectivity and supporting Pakistan’s broader digital transformation.