Telecom service providers in Pakistan have voiced strong concerns over the government’s decision to link the upcoming 5G spectrum auction to the US dollar, warning that the policy could place additional financial pressure on the sector and delay the expansion of next generation mobile networks. The criticism follows the recent approval by Economic Coordination Committee of the cabinet to proceed with the rollout of 5G spectrum under a dollar denominated pricing structure. Industry leaders argue that such an approach is disconnected from domestic economic realities and risks slowing progress toward affordable and widespread digital connectivity.
Aamir Ibrahim, Chief Executive Officer of Jazz, said that pricing spectrum in foreign currency combined with heavy upfront payment requirements imposes avoidable strain on telecom operators who generate nearly all of their revenue in Pakistani rupees. He stressed that a pragmatic and long term approach aligned with national objectives is needed to support affordable internet access at scale and unlock Pakistan’s digital potential. According to him, short term fiscal considerations should not outweigh the broader economic benefits of sustainable connectivity. He also pointed to the recent bidding process for Pakistan International Airlines, where offers were invited in local currency, as an example of policy flexibility rooted in economic realism. Ibrahim said Pakistan’s digital future depends on whether upcoming decisions are designed to support long term value creation rather than immediate revenue maximisation.
The telecom industry has drawn a direct comparison with the PIA privatisation process, noting that its relative success was driven by a focus on sustainability, transparency, and competitiveness rather than large upfront proceeds. While the government realised around Rs10 billion in direct revenue from the transaction, it also secured commitments of nearly Rs125 billion aimed at reviving airline operations. Industry representatives said the process restored credibility by shifting attention from extraction to reform, demonstrating that national assets can be aligned with long term economic goals. They argue that a similar mindset is required for spectrum policy, as digital connectivity underpins almost every major growth sector, including financial inclusion, freelancing, e commerce, digital health, and e governance.
Operators highlighted that Pakistan continues to face significant capacity constraints, with only 274 MHz of spectrum allocated nationwide to support a rapidly expanding digital economy. This limited allocation has contributed to slower speeds, service quality challenges, and restricted innovation. The economic impact is already evident, according to industry data, as freelancers contributed around $400 million in remittances between July 2024 and March 2025, yet unreliable connectivity continues to limit productivity and scale. Nearly two fifths of adults remain financially excluded, while digital banking and microfinance services struggle to expand without consistent network performance. At the same time, telecom operators operate with one of the lowest average revenues per user globally, further limiting reinvestment capacity when spectrum costs are misaligned with sector conditions.
The industry acknowledged that the government’s decision to release more than 600 MHz of new spectrum represents an important reform step, but stressed that the design of the auction will determine its effectiveness. High reserve prices, dollar denominated costs, and rigid payment structures could delay deployment and weaken long term economic returns. By contrast, pricing spectrum in local currency, allowing instalment based payments, and providing clarity on future spectrum availability could accelerate rollout and attract sustained investment. Citing GSMA analysis, telecom players warned that a two year delay in assigning new spectrum could cost Pakistan $1.8 billion in gross domestic product, rising beyond $4.3 billion if delayed by five years. These losses would translate into weaker exports, fewer jobs, and slower innovation, reinforcing the need for spectrum policy that treats connectivity as a long term national asset rather than a one time revenue source.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
