Pakistan’s latest spectrum auction marks an important milestone for the country’s digital future. By nearly tripling available spectrum from 274 MHz to 754 MHz, policymakers have addressed one of the structural constraints that has long limited the growth of mobile broadband in Pakistan. The Government of Pakistan, the Pakistan Telecommunication Authority (PTA), and the Ministry of IT and Telecom deserve recognition for completing an auction that has been anticipated for several years. The true success of this moment will not be measured in megahertz (MHz) sold, but in how effectively Pakistan translates this spectrum into reliable connectivity, wider digital inclusion and meaningful economic growth. The expansion of spectrum also creates an opportunity to accelerate productivity and support the development of digital platforms that increasingly underpin modern economies. Doing so requires attention to several structural challenges that sit beyond the auction itself. Pace of network deployment Pakistan today has more than 58, 000 mobile cell sites, and the network has expanded steadily over the past several years as data consumption continues to grow. Under the rollout obligations linked to the spectrum auction, operators are expected to upgrade roughly 1, 000 sites per year to support 5G. Only around 3% of smartphones in Pakistan are 5G-enabled. At this pace, Pakistan would have roughly 15, 000 5G-enabled sites by the end of the decade, in a network that could exceed 70, 000 towers nationwide. In other words, only about one-fifth of the country’s mobile infrastructure would support next-generation networks by 2030. Pakistan should aim to accelerate rollout so that a majority of its mobile infrastructure supports next-generation networks well before the end of the decade. Also read: Will 5G actually improve internet access for ordinary Pakistanis? Achieving this will require steps that reduce the time and cost of deployment. Streamlined site approvals, consistent right-of-way policies and greater infrastructure sharing can significantly shorten rollout timelines, while improved coordination across provinces and municipalities will be critical to scaling networks at pace. 5G-enabled devices Today, only around 3% of smartphones in Pakistan are 5G-enabled. This creates a classic chicken-and-egg challenge: consumers hesitate to purchase 5G devices when coverage is limited, while operators must be careful about investing heavily in networks when only a small share of customers can use them. Lower handset prices will help over time, but affordability remains a real barrier for many households. In several emerging markets, smartphone adoption accelerated when operators and financial institutions introduced installment-based handset programmes, allowing consumers to spread the cost of devices over time. While 4G will continue to drive broad-based digital inclusion, 5G will build on this foundation by enabling higher capacity networks and new use cases that support economic growth. Pakistan’s financial ecosystem has yet to develop similar scale in consumer device financing, and telecom operators alone cannot easily assume the credit risk involved in financing millions of devices in a market where consumer credit histories remain limited. This requires collaboration between the government, telecom operators and financial institutions to develop practical frameworks for smartphone financing. Carefully designed mechanisms, linked to national identity verification and supported by appropriate safeguards, could make modern devices accessible to far more citizens while protecting lenders from excessive risk. At the same time, reducing taxation on smartphones and enabling duty-free import of 5G equipment can help lower the cost of both devices and network deployment, supporting wider adoption. Over time, encouraging the transition away from legacy 2G, 3G and 4G devices toward modern smartphones will be critical to ensuring that these networks deliver their full value to citizens. While 4G will continue to drive broad-based digital inclusion, 5G will build on this foundation by enabling higher capacity networks and new use cases that support economic growth. Fibre infrastructure Next-generation mobile networks rely heavily on fibre connections linking towers to the core network. Yet only about 18% of Pakistan’s mobile towers are currently fibreised, significantly below many regional markets. International development partners, including the World Bank, have highlighted low tower fibre connectivity as a key constraint on Pakistan’s digital infrastructure. Strengthening fibre backhaul is essential for delivering the speed, capacity and reliability expected from advanced networks. Pakistan already has a foundation through the Universal Service Fund. Leveraging existing USF-funded infrastructure to expand fibre backhaul, alongside simplifying right-of-way approvals for fibre deployment, can accelerate rollout while improving efficiency. Investments in fibre and network densification will not only support 5G but also improve the performance and coverage of existing 4G networks, reinforcing overall connectivity. The economics of investment All of these challenges must be viewed in the context of sector economics. Pakistan’s telecom industry operates with one of the lowest average revenues per user globally, hovering around $1 per month, while network expansion remains capital intensive. The opportunity is clear. Turning this moment into real progress will depend on how quickly networks are built, how widely devices are adopted and how effectively policy supports investment. Following the auction, operators are required to pay at least half of the $507 million spectrum cost next year, alongside continued investment in network expansion. With around 3, 000 sites expected to be upgraded annually across the industry, infrastructure investment alone could approach around $300 million. Taken together, around $550 million in 5G-related investment next year would represent roughly 18-21% of the cellular industry’s projected annual revenue, in addition to the 15–20% operators already invest annually on network expansion and modernisation, pushing overall capital intensity significantly higher. At a time when rising energy costs, currency pressures and inflationary trends are also increasing operating costs. Sustaining this level of investment will ultimately depend not only on infrastructure deployment, but also on stronger demand for digital services. Reducing taxes on data-only packages, for example, can help expand usage, supporting broader digital participation and strengthening the economics of network investment. Also read: Cashless by design, digital by destiny: Pakistan’s leap to inclusive progress At the same time, policy design can play a more active role in accelerating rollout. A deployment-linked approach can help align investment with national objectives. For instance, operators committing to higher levels of 5G site rollout could be provided additional flexibility in spectrum payment timelines, with longer moratoriums tied to greater deployment commitments. An operator committing to deployment of 2, 000 sites against the default annual obligation of 1, 000, for example, could be granted a two-year moratorium, while 3, 000 sites could warrant a three-year period, and so on. This would help align spectrum pricing and payment structures with long-term productivity gains, accelerating 5G deployment and ensuring that its benefits reach more citizens, more quickly. From spectrum to impact Pakistan now stands at an important inflection point. The spectrum has been allocated. The opportunity is clear. Turning this moment into real progress will depend on how quickly networks are built, how widely devices are adopted and how effectively policy supports investment. If these pieces come together, Pakistan can move from promise to progress so that the spectrum allocated today becomes the infrastructure that powers Pakistan’s digital future tomorrow.
Making Pakistan’s 5G moment work for citizens
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