GSMA Identifies Urgent Steps to Unlock Pakistan’s $1.4 Trillion Digital Potential

The GSMA convened the second edition of its Digital Nation Summit in Islamabad, honoring the Ministry of Information Technology and Telecommunication (MoITT), the Pakistan Telecommunication Authority (PTA), and Pakistan’s mobile network operators for their persistent efforts in advancing the country’s digital transformation.

During the event, the GSMA released its latest report, Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity. The publication outlines strategic policy measures to bridge one of the largest mobile internet usage gaps in the Asia-Pacific region and position Pakistan as a leader in the regional digital economy.

Mobile Internet Gap and Economic Potential

Speaking to senior policymakers at the summit, Julian Gorman, Head of Asia Pacific at GSMA, presented key insights from the report. He explained that mobile technologies and services are driving economic growth across Asia, with the potential to add US$1.4 trillion to the region’s GDP by 2030.

However, he cautioned that Pakistan risks missing this opportunity. While 81% of Pakistan’s population is covered by mobile broadband and 68% own smartphones, only 29% actually used mobile internet in 2024, leaving a 52% usage gap — the widest among major regional markets.

“Pakistan has the talent, ambition, and vision to become a digital powerhouse, but current policy barriers are slowing progress,” Gorman said. “High spectrum costs, heavy sector-specific taxes, and regulatory uncertainty are discouraging investment at a time when affordable, high-quality connectivity is most needed. Reform is not optional — it is critical for economic growth, social inclusion, and competitiveness.”

Key Findings from the GSMA Report

• Spectrum Allocation Deficit: Pakistan has one of the lowest IMT spectrum allocations in the region, and its planned 5G multiband auction has been repeatedly postponed.
• Sustainable Pricing Needed: Spectrum cost-to-revenue ratios in Asia Pacific have grown from 3% in 2014 to 9% in 2023. Excessive pricing in Pakistan threatens both coverage and speed.
• High Mobile Sector Taxes: With combined taxes on mobile usage reaching 33% — among the highest in the region — affordability is a major barrier for consumers.
• Closing the Usage Gap: Over half of Pakistanis living under mobile broadband coverage are not using it due to affordability, low digital literacy, and trust concerns.
• Gender Inclusion Progress: Women’s mobile internet adoption rose from 33% to 45% in 2024 — the highest increase among surveyed countries — showing targeted programs are effective.
• Combatting Digital Fraud: Rising fraud is eroding trust. Pakistan’s participation in the GSMA APAC Cross-Sector Anti-Scam Taskforce (ACAST) is a positive move, but needs broader scaling.

Government’s Vision for Digital Pakistan

Shaza Fatima Khawaja, Federal Minister for IT & Telecom, reaffirmed the government’s commitment to shaping a resilient, inclusive digital ecosystem in line with Prime Minister Shehbaz Sharif’s vision.

“Pakistan is not just adapting to the digital era; we are shaping it with intent and precision,” she said. “Our mission is to ensure technology drives growth, innovation, and equal access for all citizens.”

She noted several recent achievements:

• Pakistan is now among 37 nations with a WebTrust-audited National PKI.
• A 14% improvement in the ITU ICT Development Index.
• Over 200 million telecom subscribers, 10 million new broadband users, and a 24% surge in internet usage.
• Launch of AI-enabled data centers and cloud infrastructure.
• 40 Software Technology Parks operational nationwide.
• New submarine cables and 17 telecom projects extending 1,825 km of optic fiber to over 500 underserved areas.

“These projects reflect our determination to deliver connectivity, foster innovation, and promote inclusion. We are ensuring no citizen is left behind in Pakistan’s digital transformation,” she added.

Policy Priorities for Digital Acceleration

The GSMA’s report recommends urgent policy action in four key areas:

1. Comprehensive Spectrum Reform:
   • Price spectrum sustainably to balance revenue with network expansion.
   • Release additional mid-band frequencies.
   • Provide a transparent multi-year roadmap.
   • Allow spectrum sharing and trading for better efficiency.
2. Aligning Fiscal Policy with Digital Goals:
   • Reduce heavy mobile sector taxes.
   • Rationalize duties on devices and services.
   • Introduce targeted incentives like tax credits for infrastructure and R&D to attract investment.
3. Strengthening Digital Trust and Inclusion:
   • Scale up anti-fraud initiatives such as the GSMA APAC ACAST program.
   • Expand digital literacy programs, especially for women and rural communities, to reduce the 52% usage gap.
4. Regulatory Streamlining:
   • Create predictable, innovation-friendly regulations.
   • Review network continuity policies and enable “Always-On Network” solutions.
   • Encourage technology-neutral frameworks to accelerate 5G, IoT, and emerging services.

The Call to Action

“Asia Pacific is moving rapidly on 5G, IoT, and AI,” Gorman concluded. “With the right reforms, Pakistan can emerge as a regional innovation leader in developer services, IT outsourcing, and beyond. Our roadmap is clear — now is the time to act.”