By Qudsia Bano

Pakistan generated approximately $509.6 million through its 5G spectrum auction in FY2025-26, marking a major milestone in the country's digital transformation journey and laying the foundation for next-generation telecommunications services, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey describes the auction as one of the most significant developments in Pakistan's telecommunications sector during the fiscal year, reflecting the government's commitment to strengthening digital infrastructure, expanding connectivity and supporting technology-driven economic growth.

According to the survey, the Pakistan Telecommunication Authority (PTA) successfully conducted the 5G spectrum auction on March 10, 2026, generating approximately $509.6 million through the auction of 480 MHz spectrum across multiple frequency bands.

The auction comes at a time when Pakistan is seeking to accelerate digitalization across key sectors of the economy, including industry, agriculture, healthcare, education, financial services and public administration.

The Ministry of Finance noted that 5G technology is expected to significantly enhance internet speeds, improve network efficiency, reduce latency and create new opportunities for innovation and investment in emerging digital technologies.

The survey highlights that the information technology and telecommunications sector continued to play an increasingly important role in economic activity during FY2025-26. Strong growth in digital services, expanding internet access and rising technology adoption contributed to the sector's performance.

Pakistan's ICT export remittances increased by 19.7% to $3.38 billion during the fiscal year, while technology freelancer exports surged by 51% to $856.3 million. The government views improved telecommunications infrastructure as a key enabler of continued growth in digital exports and technology-based services.

According to the survey, broadband connectivity expanded significantly during the year. Broadband subscribers increased to 161 million by March 2026, while broadband penetration reached 64.2% of the population.

Total telecom subscriptions climbed to 207.2 million, reflecting growing demand for digital services and mobile connectivity across the country.

The survey notes that telecom operators continued investing in network expansion and service quality improvements. Total telecom sector investment reached $567 million during FY2025-26, supporting infrastructure development and modernization efforts.

The sector also remained an important contributor to public finances. Telecom revenues reached Rs837 billion during the fiscal year, while the industry contributed Rs285 billion to the national exchequer.

According to the Ministry of Finance, the successful 5G auction is expected to strengthen Pakistan's digital ecosystem by supporting the deployment of advanced services and technologies.

The survey notes that the country has also made progress in several other areas of digital infrastructure development. PTA retained its "G5 Regulator Advanced Level" status awarded by the International Telecommunication Union, reflecting improvements in regulatory governance and telecommunications management.

The report further highlights developments in the National Fiberization Plan, satellite communication licensing initiatives, Wi-Fi 7 adoption and cybersecurity frameworks aimed at enhancing the country's digital readiness.

The government's digital agenda also includes strengthening innovation and technology adoption. During FY2025-26, Pakistan approved its Artificial Intelligence Policy 2025, which seeks to accelerate AI adoption, promote innovation and support skills development in emerging technologies.

At the same time, programmes implemented by the Pakistan Software Export Board and Ignite focused on advanced digital skills, startup incubation, semiconductor design and technology, and entrepreneurship.

The survey notes that improved digital connectivity will be critical for supporting these initiatives and enabling businesses and individuals to participate more effectively in the digital economy.

According to the Ministry of Finance, 5G technology has the potential to transform multiple sectors by enabling smart manufacturing, precision agriculture, telemedicine, intelligent transport systems and advanced financial technologies.

The survey concludes that the successful spectrum auction represents an important step toward building a digitally connected economy capable of supporting innovation, attracting investment and enhancing competitiveness. It adds that the continued expansion of digital infrastructure and next-generation technologies will be essential for sustaining growth in Pakistan's information technology and telecommunications sectors in the years ahead.

Credit: INP-WealthPk