As Pakistan moves closer to launching 5G services, telecom authorities are stressing the need for major tax reductions to ensure the technology can be adopted smoothly and at scale. The Pakistan Telecommunication Authority (PTA) has urged the government to lower duties on telecom equipment and raw materials, warning that the current tax structure could slow down progress.
The government has already set an ambitious target to auction the 5G spectrum by February 2026, a timeline aimed at accelerating the country’s shift toward advanced digital connectivity. With nearly 196 million mobile users and 148 million broadband subscribers, Pakistan has a strong base that could benefit significantly from 5G-enabled services.
The arrival of 5G is expected to bring major transformations in everyday digital usage. Features such as e-SIMs, NFC-based payments, barcode banking, nano-finance, and even wireless charging are likely to become more common once smartphones with advanced chips and processors enter the market. However, a major challenge remains: less than 5% of mobile phones in Pakistan currently support 5G.
Telecom experts emphasize that affordability will play a crucial role in determining how quickly consumers embrace the new technology. If 5G-enabled smartphones remain expensive, adoption will be slow. Local manufacturers are therefore being encouraged to start integrating modern chipsets so the market can be ready when 5G officially arrives.
Industry groups highlight another major hurdle: a large portion of the population still uses basic phones. Estimates suggest that around 40% of mobile users rely on feature phones, while nearly 10% do not own a mobile phone at all. Even so, local production remains strong, with around 1.2 million smartphones and 1.5 million feature phones being manufactured each month.
To prepare the market, the PTA is calling for significant tax reforms. These include reducing duties on imported components—some of which are taxed at nearly 20%—and lowering levies on telecom infrastructure. According to officials, making smartphones more affordable will increase internet penetration, which in turn will boost economic activity and generate greater revenue for the government in the long run.