The Prime Minister has officially constituted a high-level committee to determine the pricing framework for Pakistan’s upcoming 5G spectrum auction. This move aims to resolve internal delays and finalise the auction process by mid-February 2026.
Breaking the Cabinet Deadlock
Federal Minister Dr. Musadik Malik leads this new sub-committee. His team must review spectrum valuation and set the final auction conditions. Their primary task is to resolve a split within the federal cabinet.
Currently, cabinet members are divided. Some factions favour holding the auction under previous, stricter terms. Others advocate for relaxed conditions to ensure a successful sale. The sub-committee will bridge this gap, set prices for each spectrum band, and finalise policy directives.
Industry Demands Financial Stability
Telecom operators are watching these developments closely. They have explicitly demanded that the dollar exchange rate be frozen on the day of the auction.
According to industry sources, freezing the rate allows operators to pay interest in Pakistani Rupees (PKR). This critical step reduces financial risk caused by currency volatility. Operators are hesitant to take on massive dollar-denominated debt without this safeguard.
5G Spectrum Auction: Road to February
The clock is ticking. The federal government has set a hard target to conduct the 5G spectrum auction by mid-February.
Once Dr. Malik’s committee finalises payment terms, the government will approve the policy directives. Immediately after, the Pakistan Telecommunication Authority (PTA) will release the Information Memorandum.
The PTA still has heavy lifting to do. They must finalise the auction format, spectrum bands, reserve prices, and lot sizes. The detailed memorandum will also outline:
- Rollout Obligations & Timelines
- Service Quality Standards
- Payment Schedules & Bidding Rules
Significantly, a PTA consultant has recommended keeping spectrum prices low. This strategy aims to encourage infrastructure investment rather than just generating short-term revenue. Under this low-price scenario, all telecom operators have expressed strong interest in participating.
