Policymakers and industry leaders in Pakistan have gathered in Islamabad to address major challenges facing the emerging 5G economy and digital future in the country.
A public-private dialogue on building the 5G economy was held on Thursday at the Sustainable Development Policy Institute, drawing senators, regulators, and telecom executives.
Senator Dr Afnan Ullah Khan warned that Pakistan could not afford to miss the knowledge economy, having already failed to capitalise on earlier industrial revolutions across the world.
Afnan Ullah Khan told participants that a Data Protection Bill had been tabled in the Senate, aimed at attracting foreign investment into data centres across the country.
The senator said international investors preferred countries with strong data protection laws, and that such legislation could unlock billions of dollars in foreign direct investment.
Dr Sajid Amin Javed of SDPI said a moderate 5G rollout could raise the economic productivity in the country by two to three per cent annually in coming years.
He added that this productivity gain would translate into nearly $20 billion in additional economic output for Pakistan every single year going forward.
A well-integrated rollout across industry, health and education sectors could generate productivity gains of up to five per cent, worth around $20 billion annually.
Dr Muhammad Mukkaram Khan of PTA said the authority was working to reduce dependence on submarine cables that remained vulnerable to disruptions caused by ongoing regional conflicts.
He confirmed that telecom operators had been directed to develop satellite links and synchronise network time protocols with China to ensure uninterrupted internet services nationwide.
Jahanzaib Raheem of the IT Ministry said the government had abolished right-of-way charges at national and provincial levels to encourage large-scale telecom infrastructure development.
He noted that such charges had previously accounted for nearly thirty per cent of total telecom investment costs, acting as a significant barrier to network expansion.
The telecom sector in the country has grown into a Rs1.7 trillion market, contributing over Rs400 billion annually to the national exchequer through taxes.
Fatima Akhtar from Jazz said excessive taxation remained a major challenge, with nearly 40 to 35 per cent of operator revenues being paid as taxes currently.
She said only five per cent of small and medium (SME) enterprises in Pakistan had been digitised so far, highlighting the significant gap in the digital economy.
Muhammad Aslam Hayat of LIRNEasia urged the government to adopt demand-side 5G policies, reduce taxes on devices, and enable private industrial 5G networks across the country.
He said the digital economy and artificial intelligence potential could generate between ten and twenty billion dollars if supported through coherent and well-coordinated government policies.
Adnan Waheed from PTCL said high taxation on fibre equipment and right-of-way payments remained the two biggest impediments to expanding the digital connectivity infrastructure at scale.
Dr Shafqat Munir of SDPI said spectrum could remain underutilised unless institutional mindsets changed and existing infrastructure weaknesses across the country were systematically and urgently addressed.
