Islamabad:
GSMA has noticed that despite Pakistan’s digital ambitions and talent, the country is falling behind in the region if no pressing telecommunications policy reforms are introduced. Without reform, investors can leave and citizens will suffer, it warned.
At GSMA Digital Nation Summit 2025, Julian Gorman, head of Asia and the Pacific in GSMA, identified three key obstacles to Pakistan’s digital growth: high taxes, limited spectrum and political discrepancies.
It is relevant to note that Minister Shaza Fatima Khawaja skipped the high-profile GSMA conference and triggered frustration among leaders of the telecom industry.
“It’s unfortunate that the minister is not present,” said a senior GSMA official while talking to journalists on Thursday.
Talking to the media after the summit said Gorman that it was possible to reduce telecommunications taxation, even under the International Monetary Fund (IMF) programs, referring to Argentina as an example.
“If urgent reforms are not implemented, investors will move to other countries,” he warned. “Freelancers in Pakistan can also lose their livelihood if they do not have enough internet and electricity.” He also said that the demand for spectrum has grown and called on the government to close the gap in spectrum use and accessibility.
Gorman expressed concern over Pakistan’s slow pace in digitalization.
“We reach a critical point as artificial intelligence (AI) and other technologies develop rapidly around the world,” he said.
He also noted that satellite-based internet should be traced quickly in Pakistan as it could benefit the economy, the IT sector and social development.
While calling for wider internet use, GSMA also emphasized the importance of building ‘Digital Trust’.
“From personal identity and financial data to important information, digital trust is crucial. The system must ensure consumer security,” Gorman said. During the event, GSMA also launched its report entitled “Unlocking Pakistan’s digital potential: Reform, trust and opportunity.”
The report stated that Pakistan is hanging in 5G rolling out, while other countries in Asia and the Pacific quickly move on to supporting smart cities, digital industries and inclusive growth.
It emphasized that 5G is more than speed-it enables real-time services, industrial automation and digital inclusion. The report also revealed that smartphones are facing 40% in customs and taxes, while mobile broadband is loaded by several tax layers.
GSMA called on Pakistan to adapt his fiscal policies with its digital development goals. At the same summit, Bilal Azhar Kayani, Prime Minister of Funding, talked about the government’s progress under the digital Pakistan initiative.
He said that financial digitization involves the reform of the Federal Board of Revenue (FBR) with AI, promoting a cashless economy and the expansion of digital public infrastructure.
“We aim to digitize all public payments within 18 months-not only issue e-cheques, but implement an end-to-end cashless system,” he said.
He emphasized that the only solution to public challenges lies in digital -run systems.
Telenor Pakistan CEO Khurrum Ashfaq said many telecom sector complaints derive from non -related problems such as strain that still affects the industry.
Meanwhile, Pakistan Telecommunication Authority (PTA) President Maj Gen (Retd) Hafeezur Rehman admitted that the journey towards Digital Pakistan has been tough and complicated. He emphasized the high charges charged by various government departments to lay fiber optic cables.
He added that the government has now decided to abolish all such ‘right to road’ charges.
Chairman of Pakistan Software Houses Association (P@Sha), Sajjad Syed, painted a gloomy picture of the IT sector. He said a national approach is required to support industry growth.
SYED also warned that the growth rate for Pakistan’s IT exports is falling, as he explained was an alarming trend.
“This means that the IT industry is moving out of the country,” he said.
