Pakistan’s telecom industry has called on the government to introduce rational and sustainable conditions in the upcoming spectrum auction policy, which is expected to be approved by the federal cabinet in the coming days. According to a report by Dawn News, industry leaders believe the government must focus on long-term economic growth and digital transformation rather than short-term revenue generation.
Telecom operators have emphasised that spectrum is an invisible but essential national infrastructure that underpins digital connectivity — the backbone of modern economies. As reported by Dawn News, services such as financial technology platforms, freelancer marketplaces, digital education, telemedicine, and public-sector digitalisation all depend heavily on mobile broadband capacity.
Despite rising demand for connectivity, Pakistan continues to face a serious spectrum shortage. The country currently has only 274 MHz of spectrum allocated nationwide, which has resulted in slow internet speeds, inconsistent service quality, and limited innovation, Dawn News reported. This shortage affects households, businesses, and government institutions alike.
Spectrum Policy Must Reflect Economic Realities
Speaking to Dawn News, Aamir Ibrahim, Chief Executive Officer of Jazz, said Pakistan’s upcoming spectrum auction must reflect the economic realities of the telecom sector.
“Since telecom operators earn revenue in Pakistani rupees, spectrum pricing and payment structures should also be denominated in local currency to ease financial pressure and accelerate network rollout,” he said.
He added that a pragmatic, long-term approach aligned with national objectives — similar to the PIA auction model — is essential to provide affordable internet at scale and unlock Pakistan’s digital future.
According to Dawn News, greater spectrum availability would also support Pakistan’s freelance economy, which contributed $400 million in remittances between July 2024 and March 2025, but remains constrained by unreliable internet connectivity.
Nearly 40 per cent of Pakistan’s adult population remains financially excluded, as digital banking and microfinance services cannot expand without dependable broadband infrastructure. Telecom operators also face one of the world’s lowest average revenue per user (ARPU) at around $1, limiting their ability to reinvest in network expansion, Dawn News reported.
Spectrum Release Termed ‘Foundational Reform’
The government’s decision to release more than 600 MHz of new spectrum has been described by industry stakeholders as a “foundational reform” that aligns with Pakistan’s digital ambitions and supports emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT), according to Dawn News.
“The question is no longer whether Pakistan needs more spectrum; it is how the auction is structured to accelerate digital progress,” industry sources told Dawn News.
Citing GSMA analysis, Dawn News reported that a two-year delay in releasing new spectrum could cost Pakistan $1.8 billion in GDP, while a five-year delay could result in losses exceeding $4.3 billion. A poorly structured policy, experts warned, could lead to lost jobs, weaker exports, and slower innovation.
Mr Ibrahim stressed that clarity on future spectrum availability is critical to restoring investor confidence, encouraging competition, and speeding up infrastructure deployment. He added that rollout obligations should prioritise improved customer experience, wider rural access, and higher service quality standards.
“These are not concessions but economic enablers that turn spectrum from a one-time revenue stream into a productive long-term national asset,” he said, as quoted by Dawn News.
Zong and Huawei Test Advanced Backhaul Technology
Meanwhile, as Pakistan moves closer to launching 5G services, Zong, in collaboration with Huawei, has successfully tested ultra-high-capacity backhaul technology to support growing data traffic demands, Dawn News reported.
According to the report, the companies completed Pakistan’s first field test of a full-duplex E-band microwave link, a solution designed to overcome spectrum limitations faced by traditional microwave backhaul systems.
The new technology allows simultaneous transmission and reception of data on the same frequency, effectively doubling spectrum efficiency and enabling data speeds of up to 50 Gbps per link. This advancement is expected to support high-definition video streaming, augmented reality, cloud services, and other low-latency applications.
Zong’s Chief Technology Officer Mao Weiliang told Dawn News that ultra-high-capacity backhaul solutions are essential for Pakistan’s digital future, adding that they will enhance user experience, support emerging technologies, and contribute to economic growth and digital inclusion.
With the successful test, Zong has become the first telecom operator in Pakistan to deploy full-duplex E-band technology, reinforcing its role in the country’s digital transformation.
