Islamabad, Mar 28, 2025: Despite telecom companies contributing billions of rupees to the Universal Service Fund (USF), not a single initiative has been launched in the last two years to enhance internet accessibility in Pakistan’s underserved regions.
The situation has further deteriorated due to the absence of telecom industry representatives on the USF board for over two years, raising concerns about transparency and efficiency.
For years, telecom operators have been allocating significant funds to USF and Ignite, yet there is little evidence of how these resources have been utilized.
The government’s reluctance to include industry professionals on these boards has resulted in stalled projects, misaligned priorities, and a lack of accountability.
Insiders revealed that telecom companies generated approximately Rs1,771 billion in revenue over the past two years and allocated 1.5%—around Rs26 billion—to USF without any revenue adjustments.
Additionally, telecom operators contribute 0.5% to Ignite and another 0.5% to the Pakistan Telecommunication Authority (PTA).
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Industry officials estimate that the USF has received Rs20 billion in the last two years, yet it has not initiated any substantial projects.
The exclusion of telecom sector experts from key decision-making forums is severely impacting network expansion and digital advancements.
The absence of board representation from Cellular Mobile Operators (CMOs) has put Pakistan’s digital future at risk.
According to sources, nearly Rs50 billion contributed by CMOs remains unutilized within the fund.
The authorities abandoned previously approved projects, further delaying essential connectivity improvements in remote and rural areas.
Financial mismanagement has shelved many initiatives, exacerbating digital exclusion.
Historically, USF and Ignite performed effectively when telecom sector representatives played an active role in their governance.
However, the government now claims that appointing CMOs to these boards presents a conflict of interest, leaving bureaucrats with minimal industry knowledge in charge of crucial decisions.
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This shift has led to stalled projects and inefficient policies.
In regions like Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (G-B), telecom operators contribute to USF, yet network expansion remains stagnant.
Difficult terrain, sparse populations, and high infrastructure costs make private investment impractical without USF subsidies.
Unfortunately, project delays have further isolated these regions, denying residents essential connectivity.
Ignite, tasked with developing digital and IT skills, is also experiencing setbacks.
Its failure to engage industry professionals has slowed progress in vital areas such as 5G, AI-powered networks, and cybersecurity.
Additionally, the absence of strategic investment in digital training programs has hindered Pakistan’s global competitiveness in the technology sector.
Industry experts emphasize that the USF aims to bridge the digital divide, but its inactivity deprives millions of reliable connectivity.
The lack of CMO representation is more than a governance issue—it is jeopardizing Pakistan’s digital future.
Without industry input, project priorities risk becoming disconnected from the realities of the telecom sector.
Telecom operators are urging immediate inclusion of industry representatives in USF and Ignite boards to ensure effective oversight.
Without decisive action, Pakistan risks falling behind in digital infrastructure and IT development, limiting economic growth and connectivity opportunities for millions.
A USF spokesperson claims that they have completed 70% of ongoing projects to justify the lack of new initiatives, but industry insiders challenge this assertion.
They argue that without industry-led decision-making, the future of Pakistan’s digital landscape remains uncertain.
