Pakistan is on track to launch 5G services within the next six months, with the spectrum auction expected to take place in February 2026. Federal IT Minister Shaza Fatima emphasized the transformative potential of 5G, stating, “Internet is the foundation of the entire digital system. 5G will increase both speed and accessibility for users across Pakistan.”
Finance Minister Muhammad Aurangzeb noted that the Digital Pakistan initiative is being accelerated, with 5G deployment as a key milestone for the country’s digital transformation. The Economic Coordination Committee (ECC) has approved the recommendations from the Spectrum Advisory Committee, which will be presented to the cabinet for final approval.
The auction will cover the 600 MHz spectrum, and telecom operators have proposed several policy recommendations to support smooth implementation:
- Pricing spectrum in Pakistani rupees instead of dollars.
- Linking spectrum payments to a stable exchange rate.
- Allowing payments in ten-year, interest-free installments.
- Offering tax incentives for 5G infrastructure, including equipment and mobile devices.
- Reducing withholding tax from 15% to 8%.
- Harmonizing GST at 16% to encourage adoption.
- Setting a minimum spectrum price to ensure average revenue per user reaches $2 within three years.
Stakeholder consultations, including discussions with telecom companies, are ongoing to ensure a seamless rollout. Experts believe that 5G will not only improve internet speed and connectivity but also catalyze innovation in sectors such as artificial intelligence, the Internet of Things (IoT), and smart cities. The spectrum auction marks a critical step toward bridging the digital gap in Pakistan and enhancing nationwide digital infrastructure.
This initiative is seen as pivotal in strengthening Pakistan’s position in the global digital landscape and providing citizens with faster, more reliable internet services.
