During the National Assembly Standing Committee on IT and Telecom session on July 14, 2026, the discussion shifted toward the severe deterioration of mobile services. Federal Minister Shaza Fatima highlighted a critical financial reality regarding consumer habits. She stated that an average consumer in Pakistan spends just Rs. 285 per month specifically on internet usage.
While this number might seem shockingly low, official data confirms this harsh economic reality. However, understanding this number is the key to understanding why Pakistan’s telecom infrastructure is currently collapsing.
Telecom companies track their revenue using a metric called Average Revenue Per User (ARPU). According to official PTA data for the January-March 2026 quarter, the total mobile ARPU stands at Rs. 346. Importantly, this total encompasses both voice and data revenues.
Therefore, the Minister’s claim that Rs. 285 is spent strictly on internet usage aligns perfectly with the current financial metrics. An internet spend of roughly one dollar a month places Pakistan among the lowest telecom revenue-generating markets in the world.
The Taxation Squeeze on Internet Bills
The Minister used this Rs. 285 figure to explain why telecom companies are failing to invest capital into network upgrades. However, this low revenue is heavily exacerbated by the government’s own aggressive taxation policies.
While the telecom operator only secures a fraction of the revenue for data, the consumer is actually paying significantly more out of pocket. The government imposes a massive 15% Withholding Tax (WHT) on all telecom and internet prepaid recharges, alongside high provincial sales taxes. Consequently, the state constantly drains revenue from both the consumer and the sector, leaving telecom companies with very little capital to reinvest into 4G or 5G infrastructure.
First-World Demands on a Third-World Grid
The financial strain of a Rs. 285 internet spend is worsened by the country’s energy crisis. During the committee meeting, the Minister rightfully defended the public. She argued that consumers pay their bills, so their internet service should not stop during load-shedding.
However, enforcing this demand is a logistical nightmare. In the exact same session, the PTA Chairman admitted that Pakistan suffered an average of 10 hours of load-shedding in May. Furthermore, some areas endured up to 18 hours of continuous blackouts.
Telecom operators cannot maintain uninterrupted coverage during 18-hour blackouts when their average internet revenue per user is merely Rs. 285. They are forced to burn expensive fuel in backup generators just to keep the basic 3G and 4G networks alive. Ultimately, until the government addresses predatory taxation and fixes the power grid, Pakistan’s mobile services will continue to degrade.
