The GSM Association (GSMA) has called on Pakistan to strengthen its investment environment for the digital sector, urging targeted tax and policy reforms in the upcoming Finance Bill 2026–27 to accelerate telecom growth and digital inclusion.
In a formal letter addressed to Federal Minister for Finance and Revenue Muhammad Aurangzeb, the global mobile industry body acknowledged recent improvements in Pakistan’s telecom and digital policy framework, particularly reforms in spectrum pricing and payment structures.
It noted that measures such as phased payments and moratorium options represent a “positive shift” toward encouraging sustainable investment in the sector.
GSMA also highlighted recent progress in Pakistan’s connectivity landscape, including reduced usage gaps and rising mobile internet adoption, stating that collaboration between the government and industry is beginning to deliver measurable results.
However, the organization cautioned that sustained momentum will require a more predictable and balanced fiscal environment. It stressed that recent gains from spectrum reforms could be further strengthened through complementary tax and regulatory adjustments.
According to the letter, international evidence shows that improved spectrum pricing mechanisms and supportive tax regimes help drive higher capital investment, faster rollout of next-generation networks, and broader economic growth.
GSMA noted that Pakistan still faces a significant digital usage gap, which could be reduced through improved affordability and investment-friendly policies.
The association outlined three priority areas for consideration in the Finance Bill 2026–27: reducing upfront and distortionary sector taxes that affect investment decisions, improving the affordability of mobile devices and services to expand adoption, and simplifying and harmonising tax structures to enhance predictability for long-term planning.
The GSMA concluded that a calibrated fiscal strategy, combined with ongoing spectrum reforms, could create a “virtuous cycle” of investment, innovation, and economic growth in Pakistan’s digital economy.
