GSMA has cautioned that Pakistan’s high tax burden on the telecom sector could slow 5G deployment and future network investment, even as the country’s digital economy continues to show significant progress. The warning came as GSMA launched its Digital Pakistan 2030 report, with GSMA Head of Asia Pacific Julian Gorman noting that reforms in spectrum management have improved the investment environment for telecom operators in recent years.
Despite these improvements, Gorman cautioned that excessive taxation could discourage further investment in next generation networks, including 5G, at a time when operators are being asked to fund substantial infrastructure upgrades. The report noted that Pakistan’s telecom industry contributed approximately Rs 278 billion in taxes and regulatory fees during 2025, underscoring the scale of the sector’s existing tax burden.
Alongside its concerns over taxation, GSMA highlighted meaningful improvements in digital inclusion across the country. Mobile internet usage among women rose from 45 percent to 53 percent, while Pakistan’s mobile internet gender gap narrowed from 25 percent to 8 percent, reflecting a substantial closing of the connectivity divide between men and women in recent years. GSMA described Pakistan’s digital economy as being on a stronger footing overall, while stressing that cybersecurity and data governance will remain critical to sustaining future digital growth.
Separately, the Senate Standing Committee on Cabinet Secretariat took up the issue of Right of Way access for telecom companies during a recent meeting, an area that has repeatedly emerged as a bottleneck for network expansion. During the session, Senator Shahadat Awan noted that Federal IT Minister Shaza Fatima Khawaja and the IT Secretary were absent despite having been asked to attend the previous meeting. Committee Chairman Rana Mahmood-ul-Hassan said there had been some confusion around the matter and directed that both the minister and the secretary be summoned to the committee’s next meeting to brief lawmakers on Right of Way issues affecting the telecom sector’s infrastructure rollout.
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