Tuesday, Dec 30, 2025 | 09 Rajab 1447
Tuesday, Dec 30, 2025 | 09 Rajab 1447
ISLAMABAD: Telecom operators have urged the government to replicate the reform-driven approach adopted during the privatization of Pakistan International Airlines (PIA) in the spectrum auction, a move widely seen as critical to strengthening digital connectivity and driving economic growth.
The successful privatization of PIA demonstrated that when policy is grounded in market realities and long-term national priorities, progress becomes achievable, and government credibility rises.
Spectrum is the invisible infrastructure that drives digital connectivity, the foundation of modern life. Apps driving fintech adoption, platforms powering freelancers, and digital tools for schools and hospitals all depend on mobile broadband capacity.
The problem is clear: demand for connectivity has surged, but spectrum availability remains scarce. With just 274 MHz allocated nationwide, Pakistan is trying to run a digital economy on a two-lane highway where eight lanes are needed. The result is slow speeds, poor service quality, and limited innovation, constraining households, businesses, and government alike.
Aamir Ibrahim, CEO of Jazz, emphasised that Pakistan’s upcoming spectrum auction must reflect the economic realities of the telecom sector. Since operators earn in Pakistani rupees, spectrum pricing and payment structures should also be denominated in the same currency to ease financial pressure and accelerate network rollout. A pragmatic, long-term approach, aligned with national objectives, similar to the PIA auction, is essential to deliver affordable internet at scale and unlock Pakistan’s digital future.
Freelancers contributed $400 million in remittances during July 2024 – March 2025 yet remain constrained by unstable internet. Nearly two-fifths of adults are financially excluded, as digital banking and microfinance cannot scale without reliable connectivity. Telecom operators struggle with $1 ARPU, which is one of the lowest globally, limiting their ability to reinvest in infrastructure.
The government’s recognition of this bottleneck and its decision to release over 600 MHz of new spectrum is therefore a foundational reform step. It aligns with national digital goals and supports emerging technologies like AI and IoT. The issue is no longer whether Pakistan needs more spectrum; it is how the auction is structured to accelerate digital progress.
Telecom is capital-intensive. Every rupee spent on acquiring spectrum is a rupee not spent on expanding coverage, improving network efficiency, or extending service to rural areas. Historically, auctions have relied on high upfront payments and US-dollar pricing, leaving operators financially stretched and delaying rollout.
The cost of delay is not theoretical. GSMA analysis shows that a two-year delay in new spectrum could cost $1.8 billion in GDP, while a five-year delay could exceed $4.3 billion. Misaligned policy now means lost jobs, weaker exports, and slower innovation.
The solution is to apply the principles that ensured PIA’s success. Spectrum pricing and policy must reflect domestic realities and national interest. Operators earn in local currency, so limiting exposure to foreign exchange risk is critical. Reserve prices should be set conservatively and denominated in Pakistani Rupees, while instalment-based payment structures should enable operators to invest in rollout. Numerous regional examples demonstrate that local-currency auctions attract investment while reducing financial risk.
Most importantly, auction design should prioritize national outcomes: coverage expansion, affordability, and handset availability. A commitment-based structure for example, directing at least 50% of the auction proceeds into the Universal Service Fund (USF) can directly support 5G ecosystem development, handset penetration, and accelerated rollout. This is the same philosophy that made PIA’s reform credible and actionable.
Clarity on future spectrum availability is essential to restore investor confidence, encourage competition, and accelerate infrastructure deployment. Rollout obligations must prioritize improving customer experience, widening rural access, and achieving service quality standards that empower Pakistan’s digital economy. These are not concessions but economic enablers that turn spectrum from a one-time revenue stream into a productive long-term national asset.
Pakistan has already proven that pragmatic reforms attract investment and build confidence. Spectrum must be viewed through the same nation-building lens. It is the foundation for a globally competitive IT export industry, millions of digital jobs, industrial automation, e-learning, telehealth, e-governance, and inclusive participation in the economy. Every additional MHz carries measurable benefits for productivity, innovation, and inclusion.
Copyright Business Recorder, 2025
