Funds allocated to extend telecom and internet services to underserved areas of Gilgit-Baltistan (GB) have remained unused due to legal and institutional complications. The funds, intended for projects under the Universal Service Fund (USF), have been stalled since the creation of the USF Gilgit-Baltistan Council (USF GBC) in 2015. Despite the establishment of the separate body, no projects have been executed, primarily due to limited resources and institutional weaknesses.
Official documents reveal that the creation of USF GBC led to duplication and confusion in governance. In 2012, the Pakistan Telecommunication (Re-organization) Act, 1996 was adapted to GB, legally allowing national bodies like the Pakistan Telecommunication Authority (PTA) and USF Pakistan to operate in the region. However, the formation of USF GBC hindered the national USF’s operations, blocking much-needed projects.
In a recent meeting chaired by the GB Council and attended by the Ministry of Law and Justice, officials acknowledged the negative impact of USF GBC’s establishment. The issue has now reached the Ministry of Law and Justice, which has been asked to review a draft Amendment Act prepared by the GB Council. The proposed amendment calls for dissolving USF GBC and extending the jurisdiction of USF Pakistan directly to GB.
A senior official from the GB Council stated, “Dissolving USF GBC and creating a suitable legal instrument will allow USF Pakistan to directly implement projects in GB, aligning with the national telecom framework.”
To resolve the issue and use the idle funds, experts recommend the following steps:
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Dissolve USF GBC – Legally wind up the company that has failed to fulfill its mandate.
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Amendment Act – Pass a legal amendment to extend USF Pakistan’s jurisdiction to GB.
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Direct Project Implementation – Allow USF Pakistan to fund and manage telecom projects in GB.
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Institutional Coordination – Set up a coordination mechanism among the GB Council, Ministry of IT, and USF Pakistan.
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Transparency & Accountability – Implement monitoring systems to ensure funds are used for digital connectivity in remote areas.
The delay in resolving these legal challenges has led to missed opportunities for improving connectivity in GB, exacerbating the region’s digital divide. Without swift resolution, experts warn that the gap in telecom services will continue to widen.
