The Asian Development Bank (ADB) has projected that Pakistan’s telecommunications sector will grow at an annual rate of 3.3% through 2029. However, the report warns that the country remains significantly behind in 4G and 5G rollout, citing limited investment, policy challenges, and infrastructure shortfalls as major roadblocks. In a comprehensive analysis aimed at guiding policymakers and industry stakeholders, ADB estimates the current size of Pakistan’s telecom market at $4.52 billion, with projections indicating it will expand to $5.32 billion by 2029. Despite 80% of the population having access to mobile internet, actual usage remains limited, largely due to the affordability of internet-enabled devices, particularly among women and low-income groups.
According to ADB, the digital sector’s contribution to GDP currently stands at just 1.5%, underlining the urgent need for strategic investment in core infrastructure. The report emphasizes the need for immediate investment in fiber optic infrastructure and the expansion of fixed broadband services, which currently reach only 1.3% of the population. The bank also highlights the lack of access to fiber networks across much of the country, recommending the rapid deployment of fiber optic cables, especially in remote and underdeveloped regions.
Pakistan’s high telecom taxation regime was also identified as a significant deterrent for investors. ADB notes that the country imposes the highest telecom taxes in the region, creating an unfavorable environment for investment and hindering progress. Over the past five years, political instability and insufficient government focus on spectrum development have resulted in minimal advancement in digital infrastructure and network upgrades.
While commercial 5G services have already launched in 101 countries, Pakistan remains unprepared for this next-generation technology. Even 4G coverage in the country is the lowest in the region, highlighting a widening digital divide. The report further draws attention to stark gender and regional disparities in internet usage, with only 33% of women online compared to 53% of men. ADB calls for targeted programs to build digital literacy and online business skills among women and youth, especially in rural areas.
ADB also recommends that provincial governments actively boost demand for fiber broadband by integrating its deployment within public service infrastructure. Schools, hospitals, and public institutions in underserved areas should be prioritized to ensure more equitable access and help bridge the connectivity gap.
