Pakistan’s telecom and digital sector faces the risk of losing much-needed foreign investment if urgent policy reforms are not implemented, the GSMA has warned.
Speaking at the GSMA Digital Nation Summit 2025, Julian Gorman, Head of Asia Pacific at GSMA, identified three key obstacles to Pakistan’s digital growth: high telecom taxes, limited spectrum availability, and inconsistent policies.
“It’s disappointing that the IT minister is not here today,” a senior GSMA official remarked, pointing out that Federal IT Minister Shaza Fatima Khawaja skipped the high-profile conference — a move that frustrated industry leaders.
Gorman stressed that reducing telecom taxation was possible even under IMF programmes, citing Argentina as an example. He warned that without swift action, investors would shift to other markets, leaving Pakistan’s citizens and freelancers at a disadvantage due to inadequate internet and power supply.
He urged the government to address the growing demand for spectrum and close the gap between usage and availability. Gorman also recommended fast-tracking satellite-based internet to boost Pakistan’s economy, IT sector, and social inclusion.
The GSMA launched its report, Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity, highlighting that Pakistan is lagging behind in 5G rollout while other Asia-Pacific countries are advancing towards smart cities, industrial automation, and inclusive growth.
The report further revealed that smartphones face up to 40% in taxes and customs duties, while mobile broadband is burdened by multiple tax layers — policies the GSMA says are slowing digital adoption.
Addressing the summit, Minister of State for Finance Bilal Azhar Kayani outlined government plans to digitise all payments within 18 months, reform the Federal Board of Revenue with AI, and promote a cashless economy.
PTA Chairman Maj Gen (retd) Hafeezur Rehman admitted the journey towards Digital Pakistan has been “rough and complicated” but confirmed the government has decided to abolish all ‘Right of Way’ charges for laying fibre optic cables.
Sajjad Syed, Chairman of P@SHA, warned that Pakistan’s IT export growth is declining, with many companies relocating abroad — an alarming trend for the industry.
