Pakistan’s IT sector: 5G, digital reforms & growth plans unveiled

Islamabad: The Minister of Information Technology held an in-camera briefing on the progress of the 5G spectrum and digital development initiatives in Pakistan, outlining key advancements and future goals for the sector.

Key highlights of the briefing included:

1. IT Sector Growth: Pakistan’s IT exports have reached USD 3.8 billion, with freelancers contributing USD 0.7 billion, reflecting a significant 91% growth.

2. Digital Initiatives: The Pakistan Digital Authority has been established to create a national digital blueprint targeting agriculture, health, and education sectors.

3. Skills Development: A push to train 300,000 individuals is underway, with a target of 1 million, aimed at creating strong job opportunities and a positive economic multiplier effect.

4. Affordable Internet: The government’s priority remains to ensure affordable high-bandwidth internet access for all citizens.

5. Submarine Cables: Pakistan plans to expand international submarine cable capacity to enhance global connectivity.

6. Fiberization: Currently, only 14% of telecom towers are connected to fiber optics. The government plans to achieve ambitious targets in collaboration with local fiber partners over the next three years.

7. Right-of-Way (RoW) Reforms: The Capital Development Authority (CDA) has removed fees for Right-of-Way in Islamabad, with similar moves expected from the National Highway Authority (NHA) and Railways following a letter issued on August 27. Previously, the fees stood at Rs 36 per meter annually.

8. Wireless to Fiber Shift: With 98% of the network wireless, the focus is now shifting to fiber backhaul to improve network efficiency.

9. Youth Empowerment: The government is enhancing tech park infrastructure with 25 new co-working spaces, adding 2,800 seats for aspiring entrepreneurs and tech professionals.

10. 5G Spectrum Roadmap: The Ministry is focusing on the sale of 600 MHz of spectrum, with a rollout expected within three months after the auction.

11. Satellite Internet: The licensing process has been streamlined, with an international consultant onboard and an open space policy in place to attract global entrants.

12. Challenges in the Sector: The Pakistan Telecommunication Authority (PTA) noted that while the sector has grown, it faces congestion, high operating costs, and 37.4% taxes. The country’s telecom sector still relies heavily on 2G networks.

13. Sector Bottlenecks: Key challenges include Right-of-Way issues, lack of fiber infrastructure, high capital expenditure, power gaps, limited backhaul capacity, and a shortage of international data centers.

14. 5G Trial and Auction: A 5G trial policy was initiated in October 2017, and the auction process began in 2023. The market remains under-supplied in spectrum, but litigation regarding Sun TV and MMDS is expected to resolve soon.

15. Future Outlook: The government aims to hold a spectrum auction by December 2025, which is expected to boost GDP, exports, and job creation. Advancements in regulations, including national roaming, SIM security, VoWiFi, 3G sunset, Wi-Fi 6E/7, and cybersecurity, are also underway.

The briefing emphasized the government’s commitment to building a digitally connected Pakistan, with plans for comprehensive reforms to unlock the full potential of the tech sector and enable significant growth in telecommunications and IT.