In a move awaited by Pakistan telecom sector for several years, Federal Board of Revenue has issued a fresh customs valuation ruling for the import of fibre broadband Wi Fi routers, commonly known as Optical Network Terminals. The revised valuation is expected to ease cost pressures on broadband operators and support the wider rollout of fibre based internet services at a time when household fibre penetration in Pakistan remains below 5 percent, among the lowest levels in the region.
The issue dates back to 2020 when FBR unilaterally increased the customs valuation of ONTs by nearly 300 percent, despite the fact that major broadband operators were importing the equipment at prevailing international market prices through documented banking channels. Telecom operators raised objections, arguing that the sharp increase did not reflect actual import costs and would negatively affect fibre deployment. Following the move, operators sought legal remedies and obtained a stay order, while continuing to engage with relevant authorities to seek a revision based on real market data and global pricing benchmarks.
In May 2024, FBR issued a revised valuation that marginally reduced the assessed prices to USD 199 for RF ONTs and USD 60 for non RF ONTs, compared to the 2020 levels of USD 219 and USD 66 respectively. While the revision acknowledged some of the industry concerns, telecom operators maintained that the valuation still remained significantly higher than actual import prices. Continued engagement by operators, along with representations from Ministry of IT and Telecom, resulted in another revision in December 2024, when FBR lowered the valuation further to USD 165 for RF ONTs and USD 44 for non RF ONTs. Even then, the industry maintained that the assessed values were still between 100 and 200 percent higher than real transaction prices in the global market.
After sustained consultations and renewed review by the Customs Valuation Committee, FBR issued a fresh ruling on January 26, 2026, significantly reducing the customs valuation to USD 38 for RF ONTs and USD 21 for non RF ONTs. The new rates closely align with prevailing international prices and effectively address the long standing concerns raised by telecom operators. Industry stakeholders believe the move will help lower input costs for fibre broadband deployments and remove a key barrier that had slowed network expansion and customer onboarding.
Telecom operators welcomed the decision, describing it as a positive step for both the industry and consumers. Wahaj Siraj, Vice Chairman of Telecom Operators Association of Pakistan, thanked Prime Minister Shehbaz Sharif, Minister for IT and Telecom Shaza Khawaja, Minister for Economic Affairs Ahad Cheema, Chairman FBR Rashid Langrial, and IT Secretary Zarrar Khan for taking notice of the issue and directing a reassessment based on actual import data and global market prices. He noted that the earlier valuations had placed considerable financial pressure on operators, particularly at a time when the sector continues to invest heavily in network upgrades and fibre rollout.
Siraj further stated that despite the increased valuation over the past years, telecom operators had not passed on the additional cost burden to consumers and had absorbed the impact to keep fibre broadband packages affordable. With the revised valuation now in place, operators will be able to continue offering ONTs to customers under existing pricing structures, supporting wider adoption of fibre services. Industry observers see the decision as a practical measure that aligns fiscal policy with digital connectivity goals, while enabling operators to accelerate fibre deployment across urban and underserved areas without adding to consumer costs.
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