Pakistan is facing the most critical spectrum shortage in the region, with only 274 MHz of spectrum currently available, according to official records from the Pakistan Telecommunication Authority (PTA). The limited availability has placed the country behind several regional peers, including Saudi Arabia, Thailand, and Bangladesh, which all have significantly greater spectrum resources to support their mobile broadband services. Saudi Arabia leads with 1200 MHz, while both Thailand and Bangladesh each have 600 MHz.
The shortage of spectrum is contributing to service quality concerns and rising network congestion, particularly as mobile broadband penetration continues to grow. To address these challenges, the government is moving toward the auction of 5G spectrum, a process designed to unlock new capacity and enable telecom operators to expand their networks. The Frequency Allocation Board has already made spectrum available for the auction, which is being coordinated under the guidance of an Auction Advisory Committee.
PTA began the groundwork for the auction in 2023 and advanced the process in November 2024 by hiring an international consultant. The consultant was tasked with conducting a market analysis, determining spectrum valuation, and advising on the optimal auction design. This structured approach reflects the importance of ensuring that the upcoming 5G auction aligns with both market realities and policy goals.
According to PTA documentation, the introduction of 5G spectrum is expected to play a vital role in Pakistan’s economic development. Projections suggest that the deployment of 5G services could contribute an additional 1.5 to 2.4 percent to Pakistan’s gross domestic product. The move could also generate employment growth, with estimates ranging between 3.1 and 13 percent more jobs as industries benefit from the adoption of advanced digital technologies enabled by 5G connectivity.
Beyond its direct impact on GDP and employment, spectrum availability has further implications for investment and trade. PTA estimates indicate that access to 5G spectrum could increase foreign direct investment by around 2 percent and boost exports by up to 1.9 percent. These projections underscore the potential role of spectrum expansion in attracting international business interest and enhancing the competitiveness of Pakistan’s economy.
The global rollout of 5G has already progressed rapidly, with 101 countries having launched commercial services. Pakistan, by contrast, remains among the nations yet to deploy 5G, placing it at the bottom of regional rankings in terms of spectrum allocation. Among 16 regional countries, Pakistan is currently in last place.
However, PTA anticipates that a successful auction will significantly improve Pakistan’s position. Once the spectrum is allocated, the country is expected to move to sixth place in the region, narrowing the gap with its peers. This improvement is expected to not only alleviate current network congestion but also provide the foundation for widespread 5G adoption in the years ahead.
The upcoming spectrum auction represents both a challenge and an opportunity. While Pakistan faces a pressing need to close the gap with neighboring markets, the potential economic and technological benefits of introducing 5G spectrum could mark a turning point for the country’s digital development. With the auction process advancing, stakeholders in the telecom sector are closely watching how the decisions made in the coming months will shape Pakistan’s connectivity landscape and its broader economic trajectory.
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