By Qudsia Bano

Pakistan's broadband subscriber base reached 161 million by March 2026, reflecting the rapid expansion of digital connectivity and the growing role of telecommunications infrastructure in supporting economic activity, digital services and technological transformation, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey highlights continued growth in internet usage across the country, driven by rising smartphone adoption, expansion of mobile broadband networks and increasing demand for digital services by households, businesses and public institutions.

According to the survey, broadband penetration reached 64.2% by March 2026, compared with 60.6% in FY2024-25. The increase underscores the growing integration of digital technologies into everyday economic and social activities.

The telecommunications sector remained one of the most dynamic segments of the economy during FY2025-26. Total telecom subscriptions rose to 207.2 million by March 2026, reflecting steady rise in mobile connectivity and digital access across urban and rural areas.

The survey notes that expanding broadband coverage is supporting the government's broader digital transformation agenda by facilitating access to e-commerce, digital banking, online education, telemedicine and technology-enabled public services.

Improved connectivity has also played an important role in supporting Pakistan's growing information technology sector. ICT export remittances increased by 19.7% to $3.38 billion during July-March FY2025-26, compared with $2.83 billion during the corresponding period of the previous fiscal year. Technology freelancer exports surged by 51% to $856.3 million, highlighting the growing link between digital infrastructure and export growth.

According to the survey, increasing internet access has enabled a larger number of individuals and businesses to participate in the digital economy. Freelancers, software developers, online entrepreneurs and technology startups have particularly benefited from improvements in connectivity and digital services.

The report notes that the telecommunications sector continued attracting investment during the fiscal year. Telecom investment amounted to $567 million during July-March FY2025-26, supporting network expansion, infrastructure upgrades and service improvements aimed at meeting rising demand for data services.

According to the Ministry of Finance, these investments have helped improve network quality, increase broadband availability and strengthen digital infrastructure nationwide.

The sector also remained an important contributor to government revenues. Telecom revenues reached Rs837 billion during July-March FY2025-26, while the industry contributed Rs285 billion to the national exchequer through taxes, fees and other payments.

The survey highlights that Pakistan achieved a major milestone in digital infrastructure development with the successful 5G spectrum auction conducted on March 10, 2026. The auction generated approximately $509.6 million through the sale of 480 MHz spectrum across multiple frequency bands.

The introduction of 5G technology is expected to further enhance connectivity, increase network capacity and support advanced digital applications across various sectors of the economy.

According to the survey, progress was also made in several supporting areas of digital infrastructure. The government continued implementing the National Fiberization Plan aimed at expanding fiber-optic connectivity and improving broadband quality.

The report notes that efforts are underway to strengthen satellite communication services, promote adoption of emerging technologies such as Wi-Fi 7 and improve cybersecurity frameworks to support the growing digital ecosystem.

The Pakistan Telecommunication Authority retained its "G5 Regulator Advanced Level" status awarded by the International Telecommunication Union, reflecting improvements in regulatory governance and telecommunications management.

The survey also highlights the increasing role of digital connectivity in education, healthcare, financial inclusion and public service delivery. Expanding broadband access has enabled wider use of online learning platforms, digital payment systems and remote healthcare services.

According to the Ministry of Finance, digital infrastructure development remains essential for enhancing productivity, promoting innovation and improving competitiveness in an increasingly technology-driven global economy.

The report notes that Pakistan's digital transformation relies on connectivity, innovation and technology adoption to drive economic growth and social development.

With broadband subscriptions reaching 161 million and penetration rising to 64.2% by March 2026, FY2025-26 marked another year of strong growth for Pakistan's telecommunications sector, reinforcing the central role of digital connectivity in the country's economic and technological development.

Credit: INP-WealthPk