Pakistan’s telecom sector is navigating a pivotal period as operators push for the rollout of 5G technology while facing significant economic and regulatory challenges. Cellular Mobile Operators (CMOs) have submitted detailed recommendations to the government with the aim of making spectrum acquisition more affordable and promoting wider digital inclusion across the country. Industry experts have highlighted that the sector is under pressure from multiple factors, including currency depreciation, rising energy costs, high borrowing rates, and the scarcity of 5G-ready devices, which collectively threaten Pakistan’s ability to keep pace with regional peers in next-generation connectivity.
Telecom operators pointed out that the Pakistani rupee has lost around 100 percent of its value between 2019 and 2024, causing the cost of spectrum and network infrastructure to rise sharply, as nearly 80 percent of telecom capital expenditure is dependent on imports priced in US dollars. Rising energy costs, including a 180 percent surge in fuel prices and doubling of electricity rates, consume roughly one-quarter of operational expenses, further constraining network expansion. Even after the policy rate was reduced to 15 percent, affordable financing remains limited, making it difficult for operators to invest in the necessary infrastructure for 5G deployment. The lack of 5G-enabled devices, with less than one percent of mobile handsets in Pakistan supporting the technology, presents an additional challenge, as the average device remains almost twice the income of a typical household.
To address these issues, operators have proposed a range of policy reforms, including pegging spectrum fees to a stable exchange rate, introducing flexible installment plans for spectrum payments, reducing taxes on telecom services and 5G equipment, and providing industrial power tariffs to lower operational costs. Streamlined right of way policies and expedited regulatory frameworks for spectrum sharing, handset financing, and MVNO operations are also part of the recommendations. By implementing these measures, the industry aims to boost investment, expand mobile broadband coverage, and encourage the development of 5G applications for both consumers and businesses, helping bridge the digital divide where over half the population currently lacks reliable connectivity.
Separately, discussions on human resources within related government institutions have also surfaced. During a Senate Standing Committee on Science and Technology session, Engineer Wasim Nazir, chairman of Pakistan Engineering Council, reported that 355 of the council’s 570 sanctioned positions are currently filled, noting that under the government’s right-sizing policy, 158 vacant posts have been abolished. Federal Minister for Science and Technology Khalid Magsi stated that his ministry faced the highest number of job cuts and disclosed that former Secretary Sajid Baloch had accessed files using an e-office account, citing personal grievances over promotion. The minister added that certain responsibilities, including vehicle testing, were transferred to Ministry of Industries and Production. These developments underscore the broader operational and administrative challenges that intersect with Pakistan’s efforts to advance its telecom and digital infrastructure.
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