Govt Urged to Utilize Telecom Funds for Rural Fiber Expansion

The Asian Development Bank (ADB) has called on the Pakistani government to make better use of telecom sector funds by prioritizing fiber optic expansion into rural areas and connecting schools and hospitals to high-speed internet.

In its new report on Pakistan’s Digital Ecosystem, ADB highlighted how the Universal Service Fund (USF) could be reformed to focus on building core telecom infrastructure rather than only subsidizing service providers. The Bank recommended using USF resources to lay fiber networks up to all Union Councils, ensuring that connectivity reaches even Pakistan’s most remote communities.

ADB also urged provincial governments to play their part by subscribing to fiber broadband for public schools and hospitals. This, it noted, would create “anchor customers” that justify private investment in local networks, ultimately making broadband more accessible for businesses and households in smaller cities and towns.

The report underscored that targeted investments like these are essential to closing Pakistan’s digital divide, especially for women and marginalized groups who face additional barriers to accessing the internet. By improving connectivity, the ADB said, Pakistan could drive progress in education, healthcare, and economic opportunity in underdeveloped regions.

ADB further recommended policy reforms to ensure such projects are built on “open access” terms, meaning the infrastructure would be available to all service providers without discrimination. This would help foster competition and innovation in digital services.

The Bank concluded that channeling telecom funds into foundational infrastructure is critical for Pakistan’s long-term growth, enabling more citizens to benefit from the digital economy.