5G Will Fail in Pakistan if Telecom Taxes Stay High: GSMA

The GSMA has warned that Pakistan’s high tax burden on the telecom sector could slow 5G deployment and future network investment, despite significant progress in the country’s digital economy.

Launching its Digital Pakistan 2030 report, GSMA Head of Asia Pacific Julian Gorman said reforms in spectrum management have improved the investment environment for telecom operators. However, he cautioned that excessive taxation could discourage further investment in next-generation networks, including 5G.

The report noted that Pakistan’s telecom industry contributed approximately Rs. 278 billion in taxes and regulatory fees during 2025.

GSMA also highlighted improvements in digital inclusion, stating that mobile internet usage among women increased from 45 percent to 53 percent, while Pakistan’s mobile internet gender gap narrowed from 25 percent to 8 percent.

GSMA described Pakistan’s digital economy as being on a stronger footing and stressed that cybersecurity and data governance will be critical to sustaining future digital growth.

Separately, the Senate Standing Committee on Cabinet Secretariat discussed the issue of Right of Way (RoW) for telecom companies. During the meeting, Senator Shahadat Awan pointed out that Federal IT Minister Shaza Fatima and the IT secretary were absent despite being asked to attend the previous meeting.

Committee Chairman Rana Mahmood-ul-Hassan said there had been some confusion and directed that both the IT minister and the IT secretary be summoned to the committee’s next meeting to brief lawmakers on the matter.