2 min read
In a landmark decision aimed at boosting Pakistan’s fiber broadband sector, the Federal Board of Revenue (FBR) has significantly reduced the customs valuation for imported Optical Network Terminals (ONTs), commonly known as fiber broadband Wi-Fi routers. The move is expected to benefit consumers and telecom operators while supporting the expansion of high-speed internet services in the country, which currently reaches less than 5% of households.
The issue dates back to 2020, when the FBR increased ONT valuations by nearly 300%, despite imports being made at prevailing global prices through legitimate banking channels. Telecom operators legally challenged the decision, prompting a series of revisions over the years:
- May 2024: FBR reduced valuations to USD 199 for RF-ONTs and USD 60 for non-RF ONTs.
- December 2024: Further reductions to USD 165 and USD 44, still far above market prices.
Finally, on January 26, 2026, FBR issued a fresh ruling setting the customs valuation at USD 38 for RF-ONTs and USD 21 for non-RF ONTs, effectively aligning import costs with global market realities and easing long-standing concerns of the telecom sector.
Wahaj Siraj, Vice Chairman of the Telecom Operators Association of Pakistan, praised the decision and acknowledged the role of Prime Minister Shehbaz Sharif, IT Minister Shaza Khawaja, Economic Affairs Minister Ahad Cheema, FBR Chairman Rashid Langrial, and IT Secretary Zarrar Khan in ensuring the ruling was revised based on actual import data.
He highlighted that telecom operators had absorbed previous cost increases without passing them to consumers. With the new valuation, ONTs can now be offered to customers under existing pricing packages, providing relief to both operators and end-users.
Analysts believe this FBR move will accelerate fiber broadband adoption in Pakistan, lowering the barrier for service providers to expand coverage in underserved areas. Reduced hardware costs can translate into more affordable packages, driving digital connectivity in urban and rural regions alike.
