The GSMA, the global organization representing mobile network operators, has warned that Pakistan’s high taxes on the telecom industry could slow the rollout of 5G services and reduce future investment in mobile networks.
The warning was shared during the launch of the Digital Pakistan 2030 report. While GSMA praised Pakistan for making progress in its digital economy, it said the country still needs to reduce the financial burden on telecom companies if it wants to achieve faster digital growth.
High Taxes Could Slow 5G Expansion
Speaking at the event, Julian Gorman, Head of Asia Pacific at GSMA, said Pakistan has taken positive steps to improve the telecom sector, especially by making changes to spectrum management.
Spectrum is the radio frequency that mobile companies use to provide services such as calls, mobile internet, and future 5G networks.
According to GSMA, these reforms have created a better environment for telecom companies to invest. However, the organization warned that high taxes and regulatory charges could discourage companies from spending money on new technology and expanding their networks.
GSMA said that if telecom companies continue to face heavy financial pressure, the launch and expansion of 5G services in Pakistan could be delayed.
Telecom Industry Pays Huge Taxes
The report revealed that Pakistan’s telecom sector paid around Rs. 278 billion in taxes and regulatory fees during 2025.
These payments include different government taxes, license fees, and other charges that telecom companies must pay to continue operating in the country.
While the telecom industry continues to contribute a large amount to the national economy, GSMA believes lowering the tax burden would allow companies to invest more in improving network quality, expanding coverage, and introducing advanced technologies like 5G.
More Women Are Using Mobile Internet
The report also highlighted positive progress in digital inclusion across Pakistan.
According to GSMA, the number of women using mobile internet has increased significantly.
Mobile internet usage among women rose from 45 percent to 53 percent, showing that more women now have access to online services, education, communication, and digital business opportunities.
The report also showed that Pakistan has reduced its mobile internet gender gap from 25 percent to just 8 percent.
This means the difference between the number of men and women using mobile internet has become much smaller, which is considered a major achievement for digital inclusion.
Pakistan’s Digital Economy Is Improving
GSMA said Pakistan’s digital economy is becoming stronger and has made noticeable progress over the past few years.
However, the organization stressed that future growth will depend on stronger cybersecurity systems and better data governance.
As more government services, businesses, and financial transactions move online, protecting user data and ensuring secure digital systems will become increasingly important.
GSMA believes these areas should receive more attention to support Pakistan’s long-term digital transformation.
Senate Discusses Telecom Right of Way Issue
Separately, the Senate Standing Committee on Cabinet Secretariat discussed the issue of Right of Way (RoW) for telecom companies.
Right of Way refers to the legal permission telecom operators need to install mobile towers, fiber-optic cables, and other communication infrastructure on public or private land.
Many telecom companies have said delays in getting these approvals slow down network expansion and internet improvement projects.
IT Minister Asked to Attend Next Meeting
During the committee meeting, Senator Shahadat Awan pointed out that Federal IT Minister Shaza Fatima and the IT Secretary did not attend the meeting, even though they had been requested to appear earlier.
Committee Chairman Rana Mahmood-ul-Hassan said there had been some misunderstanding about the meeting schedule.
He directed that both the IT Minister and the IT Secretary must attend the next committee meeting to brief lawmakers on the Right of Way issue and explain what steps are being taken to improve telecom infrastructure in Pakistan.
Looking Ahead
GSMA believes Pakistan has strong potential to grow its digital economy, improve internet access, and successfully introduce 5G technology. However, the organization says this will require a more investment-friendly environment.
Reducing taxes on the telecom sector, improving spectrum policies, strengthening cybersecurity, and solving infrastructure issues such as Right of Way approvals could help Pakistan attract more investment, expand high-speed internet coverage, and accelerate the country’s digital transformation in the coming years
