Pakistan’s 5G rollout faces delay amid litigation, high operational costs

IT minister says spectrum auction may move to January 2026 as sector struggles with taxes, losses

Federal Minister for IT and Telecom Shaza Fatima Khawaja has warned that Pakistan’s long-awaited 5G rollout is at risk of further delay due to litigation, high operational costs, and industry-wide financial strain.

Briefing the National Assembly Standing Committee on IT and Telecommunications on Wednesday, the minister said Pakistan’s telecom sector is operating with just 274 MHz spectrum — less than half of Bangladesh’s 600 MHz — leaving the industry “almost choked.”

She said crippling input costs, the region’s highest taxes, low Average Revenue Per User (ARPU), and dollar-pegged license prices have already stretched telecom operators. Ongoing litigation over 154 MHz spectrum in the 2600 band, she added, could further delay or derail the 5G spectrum auction.

Prime Minister Shehbaz Sharif had earlier approved the auction for December 2025, but the minister said it may now take place in January 2026. She cited two key hurdles — the merger of Telenor with PTCL, which has been resolved, and pending court cases over the prime spectrum band.

Committee members expressed concern over poor telecom and internet services. Lawmaker Zulfiqar Bhatti protested the lack of coverage in his constituency, while Ahmad Ateeq urged improvements in smaller cities beyond Karachi, Lahore, and Islamabad.

The minister said the limited spectrum was the main cause of weak services, adding that more towers would not resolve the issue without additional frequency allocation.

The committee directed the Pakistan Telecommunication Authority (PTA) to review its performance and focus on improving nationwide service quality.

Members also questioned delays in the Islamabad IT Park project and nationwide connectivity issues. The minister said the Korean-funded project faced challenges and that the prime minister had ordered an inquiry into the delay.

Regarding disruptions in submarine internet cables near Yemen, officials said repair work was ongoing but internet traffic had been rerouted through alternative routes to maintain stable connectivity.

 

Monitoring Desk
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