ISLAMABAD: Despite collecting billions from telecom operators, the Universal Service Fund (USF) has failed to launch a single new project in the last two years to improve internet connectivity in remote and underserved areas. The lack of transparency and the exclusion of telecom industry representatives from USF’s Board of Directors have worsened the situation, raising concerns about mismanagement and stalled digital progress.
Sources revealed that telecom operators have contributed approximately Rs 20 billion to USF over the past two years alone. The total telecom revenue for the period is estimated at Rs 1,771 billion, with operators contributing 1.5% of their revenue to USF, 0.5% to Ignite, and 0.5% to the Pakistan Telecommunication Authority (PTA). However, telecom companies have had no visibility into how these funds have been utilized.
The government’s refusal to appoint telecom industry representatives to the Boards of USF and Ignite has led to misaligned priorities, delayed projects, and a lack of transparency. Industry officials argue that telecom operators, who play a critical role in network expansion, innovation, and service delivery, must have representation in decision-making to ensure efficient use of funds.
No new projects, billions remain unutilized
Despite continuous contributions, not a single new USF-funded project has been launched in the last two years. A significant portion of the Rs 50 billion contributed by telecom operators remains unutilized, while previously approved projects have either been scrapped or delayed. Many initiatives aimed at improving rural and remote connectivity have stalled due to funding shortages, raising concerns about financial mismanagement.
Deliberate exclusion of telecom experts
Industry insiders highlight that USF and Ignite performed well when telecom industry nominees were part of their boards. However, for the past two years, the government has refused to appoint Chief Marketing Officer (CMO)-nominated representatives, citing a “conflict of interest”—a stance widely criticized by the industry.
Without telecom expertise, crucial decisions are being made by bureaucrats unfamiliar with commercial realities, resulting in ineffective policies and stalled progress. This governance failure is seen as a direct threat to Pakistan’s digital future.
Connectivity crisis in AJK & GB
The situation is particularly dire in Azad Jammu & Kashmir (AJK) and Gilgit-Baltistan (GB), where telecom operators continue to contribute to USF, yet these regions suffer from poor network coverage and lack of service expansion. Due to challenging geography, low population density, and high infrastructure costs, private-sector investment in these areas is unviable without USF support.
USF subsidies are critical to ensuring digital connectivity in these remote regions. However, due to the lack of new project approvals, AJK and GB remain largely disconnected, affecting education, businesses, and overall economic development.
Ignite’s stagnation threatens Pakistan’s digital economy
Ignite, responsible for IT skill development and digital innovation, plays a crucial role in preparing Pakistani youth for global freelancing markets and boosting forex inflows. However, the lack of telecom industry representation has resulted in strategic missteps, missed investment opportunities, and stalled IT development initiatives.
Industry officials warn that without expert input, Ignite is failing to capitalize on emerging technologies like 5G, AI-driven networks, IoT, and cybersecurity, putting Pakistan’s digital competitiveness at risk. Additionally, the organization has neglected skill-building programs, further weakening the country’s potential in the global digital economy.
Industry demands urgent action
Telecom industry representatives have called for the immediate appointment of CMO nominees to the boards of USF and Ignite to restore oversight and ensure the proper utilization of funds. They argue that without industry input, Pakistan risks falling behind in digital infrastructure and IT development, leaving millions without access to reliable connectivity.
“Pakistan’s telecom sector is ready and willing to invest in the country’s digital future—but it cannot do so if the funds it contributes remain unutilized or blocked by bureaucratic inefficiencies,” industry officials emphasized.
USF’s response raises more questions
When contacted, a USF spokesperson defended the organization, stating that 70% of ongoing projects had been completed, which is why no new initiatives were launched in the last two years. However, industry experts countered that this explanation fails to justify why billions in contributions have been left unspent.
Regarding the appointment of telecom representatives to the board, the spokesperson claimed that CEOs of Zong and Ufone were on USF’s Board of Directors. However, a Zong representative denied this claim, telling The Express Tribune that their CEO had not been appointed to the board.
The future of Pakistan’s digital growth at stake
The exclusion of telecom industry leaders from key decision-making bodies is not just a governance failure—it is actively harming Pakistan’s digital future. Without urgent reforms, the nation’s progress in connectivity, IT skills, and digital economy growth could stagnate, impacting millions and leading to missed economic opportunities.
With billions of rupees sitting unused, Pakistan’s telecom sector awaits immediate government action to restore transparency, accountability, and industry-driven decision-making in USF and Ignite.
