Pakistan risks falling short of its target to boost IT exports to $25 billion within the next five years if the 5G spectrum auction is delayed any further, warned Julian Gorman, Head of Asia Pacific at the Global System for Mobile Communications (GSMA).
Speaking after a meeting with the government’s spectrum auction advisory committee on Monday, Gorman said that reliable, high-quality connectivity is essential to achieve Pakistan’s digital goals, which include building a cashless economy and connecting more people online.
GSMA’s analysis shows that if the spectrum auction is delayed by two years, Pakistan could lose $1.8 billion, and a five-year delay could cost up to $5 billion in lost GDP. The body urged the government to resolve ongoing legal and regulatory issues, particularly those linked to the PTCL-Telenor merger, that are holding back the process.
Telecom operators have also called for lower reserve prices, payment flexibility with installment options, and fees denominated in local currency instead of US dollars to reduce risks from exchange rate volatility. They also want a clear spectrum roadmap to guide investment decisions.
Gorman stressed that Pakistan’s spectrum costs are already about twice the regional average, accounting for 20% of telecom revenues. High prices, combined with rupee instability, have limited operators’ ability to invest in next-generation networks.
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He said the government should avoid outdated benchmarks for pricing and focus instead on enabling affordable access to spectrum. He said that spectrum must be allocated on reasonable terms so the industry can invest in 4G improvements and a timely 5G rollout.
