National Telecommunication and Information Security Board is currently facing challenges with the financial progress of two major telecom projects aimed at improving connectivity in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB). Despite the critical nature of these initiatives, aimed at boosting tele-density and expanding cellular services in the region, there have been significant delays in both fund disbursement and project execution. This slow financial progress poses a serious concern about the timely completion of these projects and their potential to meet the growing demands for telecom infrastructure in these remote areas.
The NGMS Core Upgradation (2024-2026) project, with a total budget of Rs. 715 million, is designed to enhance the NGMS PR/DR Core Network in AJK and GB, which will have a direct impact on the quality of telecommunication services in these regions. The project’s primary objective is to improve telecom services and increase tele-density, thereby addressing the communication gaps that often hinder development in these areas. However, despite the project being two years into its timeline, only 1% of the allocated funds have been utilized, raising concerns about the pace of implementation. The physical progress, though slightly better, stands at 10%, which indicates that the project is making some headway but is still far from the anticipated completion.
A significant portion of the total budget, Rs. 615 million, has been proposed for the fiscal year 2025-26, which indicates that a substantial portion of the project’s financial resources is yet to be allocated or spent. The slow financial progress could potentially delay the overall infrastructure development and hinder the timely completion of the project. This is especially concerning as the project’s success is crucial for enhancing telecom services in the region, which would have far-reaching implications for the local economy, digital connectivity, and overall development.
Similarly, the Expansion of Cellular Services in AJK and GB (Phase IV) (2024-2027) project, which aims to install 28 new cellular sites along with civil infrastructure, has also been slow in terms of financial utilization. With a total cost of Rs. 1,997 million, the project has only utilized Rs. 4.125 million so far, representing a mere 2% of the total funds. While physical progress in this project stands at 10%, the slow financial execution raises concerns about the ability to meet the project’s deadlines. The expansion of cellular services is crucial for enhancing mobile connectivity in remote areas, which is expected to promote tourism and improve economic activities in the region. The delayed financial progress could lead to delays in the installation of new sites, affecting the quality and coverage of telecom services in AJK and GB.
The overall financial slowdowns and delays in both projects are deeply concerning, especially given their importance in boosting digital connectivity, supporting local economies, and improving telecom infrastructure in these remote regions. The reliance on large budget allocations for FY 2025-26 for both projects suggests that much of the work is still pending, and there is an urgent need to accelerate the pace of execution. Delayed financial disbursement and slow progress could lead to cost overruns and disrupt the overall timeline for completion, potentially undermining the government’s efforts to improve telecommunication services in AJK and GB.
Both projects are essential for promoting digital inclusivity, bridging the communication divide in underserved areas, and aligning with the government’s broader vision of improving telecom services. As these projects are key to promoting economic development, including tourism, and enhancing the quality of life for residents in AJK and GB, it is crucial for the authorities to address the financial execution challenges promptly. Fast-tracking fund disbursement, ensuring timely resource allocation, and streamlining project execution are essential to ensuring that the telecom infrastructure expansion is completed on schedule and within budget.
With the increasing reliance on digital services, it is imperative for the relevant authorities to ensure that these projects proceed without further delays. The successful completion of both the NGMS Core Upgradation and the Expansion of Cellular Services projects will play a pivotal role in improving the overall telecom infrastructure, enhancing connectivity, and supporting economic growth in these important regions of Pakistan.
