ISLAMABAD:
The GSMA has noted that despite Pakistan’s digital ambitions and talent, the country risks falling behind in the region if urgent telecom policy reforms are not introduced. Without reform, investors may leave and citizens will suffer, it warned.
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 taxes, limited spectrum, and policy inconsistencies.
It is pertinent to note that IT Minister Shaza Fatima Khawaja skipped the high-profile GSMA conference, sparking frustration among telecom industry leaders.
“It is unfortunate that the minister is not present,” said a senior GSMA official while speaking to journalists on Thursday.
Speaking to the media after the summit, Gorman said reducing telecom taxation was possible, even under International Monetary Fund (IMF) programmes, citing Argentina as an example.
“If urgent reforms are not implemented, investors will move to other countries,” he warned. “Freelancers in Pakistan may also lose their livelihoods if they don’t have adequate internet and electricity.” He also said the demand for spectrum has grown and urged the government to close the gap in spectrum usage and availability.
Gorman expressed concern over Pakistan’s slow pace of digitalisation.
“We are reaching a critical point as Artificial Intelligence (AI) and other technologies are evolving rapidly across the world,” he said.
He further noted that satellite-based internet should be fast-tracked in Pakistan, as it could benefit the economy, IT sector, and social development.
While calling for wider internet usage, GSMA also stressed the importance of building ‘digital trust’.
“From personal identity and financial data to vital information, digital trust is essential. The system must ensure consumer safety,” Gorman said. During the event, GSMA also launched its report titled “Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity.”
The report stated that Pakistan lags in 5G rollout while other Asia-Pacific countries are advancing rapidly to support smart cities, digital industries, and inclusive growth.
It stressed that 5G is more than speed – it enables real-time services, industrial automation, and digital inclusion. The report also revealed that smartphones face up to 40% in customs duties and taxes, while mobile broadband is burdened by multiple tax layers.
GSMA urged Pakistan to align its fiscal policies with its digital development goals. At the same summit, Bilal Azhar Kayani, Minister of State for Finance, spoke about the government’s progress under the Digital Pakistan initiative.
He said economic digitalisation involves reforming the Federal Board of Revenue (FBR) with AI, promoting a cashless economy, and expanding digital public infrastructure.
“We aim to digitise all government payments within 18 months – not just issuing e-cheques but implementing an end-to-end cashless system,” he said.
He stressed that the only solution to public challenges lies in digital-driven systems.
Telenor Pakistan CEO Khurrum Ashfaq said many telecom sector complaints stem from unrelated issues like load shedding, which still impact the industry.
Meanwhile, Pakistan Telecommunication Authority (PTA) Chairman Maj Gen (retd) Hafeezur Rehman admitted that the journey towards Digital Pakistan has been rough and complicated. He underscored the high charges levied by various government departments for laying fibre optic cables.
He added that the government has now decided to abolish all such ‘Right of Way’ charges.
Chairman of the Pakistan Software Houses Association (P@SHA), Sajjad Syed, painted a bleak picture of the IT sector. He said a national approach is required to support the industry’s growth.
Syed also warned that the growth rate of Pakistan’s IT exports is declining which he explained was an alarming trend.
“This means the IT industry is relocating out of the country,” he said.
