In an in-depth discussion with Julian Gorman, Head of Asia Pacific at GSMA, the complexities of Pakistan’s path to becoming a fully-fledged Digital Nation were explored. Gorman, a seasoned expert with over two decades of global experience in telecom, regulatory policy, and digital transformation, is driving collaborative efforts between the mobile industry, policymakers, and ecosystems to support the advancement of digital economies. His insights shed light on the challenges and opportunities in Pakistan’s telecom sector, internet usage, and the anticipated 5G spectrum auction.
Gorman highlighted that Pakistan’s telecom industry, while showing promising growth, still faces significant hurdles. The transition from 2G to 3G and ongoing infrastructure modernization efforts have been commendable, but the absence of a stable, long-term vision has hindered sustainable development. He stressed the need for a consistent strategic plan to support the growth of the telecom industry and Pakistan’s broader digital ambitions.
Key challenges include policy inconsistencies and heavy taxation, which, combined with one of the world’s lowest Average Revenue Per User (ARPU) rates—below $1 compared to the global average of $7—make it difficult for telecom operators to thrive. Spectrum payments in USD, alongside revenue in PKR, further strain investments in digital infrastructure.
For Pakistan to bridge these gaps, Gorman advocated for deeper engagement between the government and industry stakeholders. By adopting regional trends and best practices, Pakistan can create a policy framework conducive to sustainable digital growth.
On the topic of 5G readiness, Gorman emphasized that 5G represents a transformative leap, not just an incremental upgrade in technology. He cautioned against viewing readiness solely through the lens of spectrum availability, which remains uncertain. Instead, a comprehensive, collaborative effort between government, industry, and ecosystems is required to build the foundation for 5G. He underscored the importance of creating a vibrant ecosystem capable of fostering innovation and solving real-world use cases through 5G, along with the necessary infrastructure investments to support this technology. For Pakistan, spectrum allocation is just one piece of the puzzle, and sustained infrastructure investment is key to realizing the long-term benefits of 5G for the economy.
Gorman also discussed GSMA’s recent report, “Realising Pakistan’s Aspiration to Become a Digital Nation,” which emphasizes the need for a “Whole-of-government” approach. The report outlines five key pillars—infrastructure, innovation, data governance, security, and people—as the foundation for Pakistan’s digital future. While Pakistan has made significant strides, with 81% of the adult population covered by 3G or 4G networks and 63% smartphone ownership, only 23% of the population currently subscribes to mobile internet services. To address this gap, the report offers actionable recommendations, such as reducing taxes on mobile services, introducing smartphone financing policies, and adopting a rational approach to spectrum pricing ahead of the 5G auction. These steps are crucial for sustaining long-term digital growth and fostering a connected, inclusive, and prosperous future for Pakistan.
On the issue of heavy taxation, Gorman pointed out that recent increases have added significant pressure on local telecom operators, already struggling with low revenues. This financial strain could slow the development of digital infrastructure, which is essential for Pakistan’s digital growth. High taxes discourage investment, limit market potential, and reduce accessibility, ultimately stunting the country’s digital and economic progress. Gorman urged the government to create a more supportive fiscal environment to encourage sustained investment in the telecom sector.
Pakistan’s youth, a valuable asset, has the potential to drive the country’s digital future, but a lack of digitization and accessibility presents major challenges. Gorman noted that while Pakistan has positioned itself as a leading freelance market in the region, inadequate infrastructure and significant gaps in mobile usage have prevented the youth from fully realizing their potential. He emphasized the importance of prioritizing not only internet accessibility but also affordability and reliability. By ensuring affordable internet access and widespread smartphone availability, the government can empower Pakistan’s youth to engage more actively in the global digital economy, unlocking new opportunities in various fields.
Julian Gorman’s insights underscore the crucial role of collaboration between the government, industry, and ecosystems in shaping Pakistan’s digital future. With thoughtful policy reforms and strategic investments, Pakistan has the potential to overcome its challenges and emerge as a thriving digital nation.
