5G Rollout Challenges in Pakistan: Policy and Economic Hurdles

In recent years, the world has witnessed a significant shift towards advanced mobile technologies, with 5G being at the forefront of this revolution. In Pakistan, the rollout of 5G technology is targeted for April 2025, but several challenges have emerged that could hinder this ambitious plan. The Pakistan Telecommunication Authority (PTA) has engaged foreign consultants from the National Economic Research Associates (NERA) to assess the situation and provide recommendations. Their findings reveal critical policy, business, and administrative hurdles that need to be addressed.

During a week of consultations with various stakeholders, the consultants identified several key issues that could impede the successful launch of 5G services. Among these are administrative restrictions on internet services, insufficient utilization of the existing spectrum, and the auctioning of the next-generation spectrum in foreign currency rather than local currency. These factors have raised concerns among existing market players, who fear that such conditions could limit competition and ultimately affect the bid prices and subsequent investments necessary for a successful technology rollout.

The finance minister, Muhammad Aurangzeb, emphasized the importance of a digital economy, stating that it is a critical component of the country’s economic transformation. He expressed the government’s determination to enhance connectivity and improve digital infrastructure, which is essential for the mass adoption of emerging digital technologies. This commitment is vital for fostering socio-economic development and achieving sustainable development goals.

As the government prepares for the 5G spectrum auction, various stakeholders in the telecommunications sector are engaged in discussions about the balance between promoting growth in broadband facilities and maximizing foreign exchange earnings. The consultants from NERA have indicated that they will propose a model that addresses both objectives. However, they have also suggested that the government must minimize traffic and content restrictions to create a more favorable environment for growth.

Some cellular operators have voiced their concerns about the current anti-expansion climate in the IT sector, which has hindered the country’s ability to fully leverage the 4G spectrum launched three years ago. This situation raises questions about the future of telecommunications in Pakistan and the potential for the country to catch up with global advancements in mobile technology.

While the goal of rolling out 5G technology in Pakistan is commendable, it is clear that significant policy and administrative reforms are necessary to overcome the existing challenges. The insights provided by the consultants will be crucial in shaping a roadmap for a successful spectrum auction. As the country moves forward, it is essential for all stakeholders to collaborate and create an environment that fosters innovation and growth in the telecommunications sector. Only then can Pakistan hope to fully realize the benefits of 5G technology and its potential to transform the economy.