Pakistan’s telecom industry has raised strong concerns over the government’s decision to link upcoming 5G spectrum auction prices to the US dollar, warning that the policy will place severe financial pressure on operators and delay nationwide 5G rollout. Industry leaders argue that dollar-denominated pricing and heavy upfront payments are misaligned with domestic economic realities and risk slowing the country’s digital progress.
Aamir Ibrahim, Chief Executive Officer of Jazz, said telecom operators earn revenues almost entirely in Pakistani rupees while investing locally in a highly price-sensitive market. Pricing spectrum in foreign currency, he noted, exposes the sector to exchange-rate volatility, inflates costs, and ultimately raises consumer prices while constraining investment capacity.
The Economic Coordination Committee (ECC) recently approved the rollout of 5G spectrum with pricing linked to the US dollar, triggering calls from operators for an urgent policy review. Telecom players have pointed to the recent privatisation of Pakistan International Airlines (PIA) as a relevant precedent, where bids were invited in rupees and policymakers prioritised long-term sustainability over immediate fiscal gains.
Industry representatives said the PIA transaction succeeded not because it generated large upfront proceeds, but because it focused on reform, transparency, and competitiveness. While the government earned around Rs10 billion in direct revenue, it secured commitments of nearly Rs125 billion to revive airline operations, restoring investor confidence in the process.
Telecom operators argue that a similar mindset is needed for spectrum policy, given that digital connectivity underpins financial inclusion, freelancing, e-commerce, digital health, and e-governance. Pakistan currently operates with only 274 MHz of allocated spectrum nationwide, resulting in slow internet speeds, service quality challenges, and limited innovation.
The economic impact of these constraints is already evident. Freelancers contributed approximately $400 million in remittances between July 2024 and March 2025, yet unreliable connectivity continues to limit growth. Nearly two-fifths of Pakistan’s adult population remains financially excluded, while digital banking and microfinance struggle to scale without consistent network performance.
Operators also face one of the lowest average revenues per user globally, further limiting reinvestment capacity when spectrum pricing and payment structures are misaligned. While the government’s plan to release more than 600 MHz of new spectrum is seen as a critical reform, industry leaders stress that auction design will determine its success.
They warn that high reserve prices, dollar-linked costs, and rigid payment terms could delay deployment and weaken long-term economic returns. In contrast, pricing spectrum in local currency, allowing instalment-based payments, and providing clarity on future spectrum availability could accelerate rollout and attract sustained investment.
According to GSMA analysis cited by the industry, a two-year delay in assigning new spectrum could cost Pakistan $1.8 billion in GDP, with losses exceeding $4.3 billion if delays extend to five years. These losses would translate into fewer jobs, weaker exports, and slower innovation.
Telecom players argue that Pakistan has already demonstrated through the PIA process that pragmatic reform can restore confidence and unlock long-term value. Applying the same discipline to spectrum policy, they say, would transform connectivity from a one-time revenue exercise into a durable national asset supporting inclusive growth and digital competitiveness.
