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The Universal Service Fund (USF) has allocated Rs. 9.5 billion over the past three and a half fiscal years (2021-2025) to enhance telecommunication services in Khyber Pakhtunkhwa (KP), according to official documents presented to the Senate. This investment aims to improve connectivity in remote and underserved areas by expanding mobile network coverage and fiber optic infrastructure.
As part of the initiative, telecom services, including 2G, 3G, and 4G, have been extended to 1,600 remote locations, along with network coverage across 37.43 kilometers of key road segments. The implementation of 1,159 kilometers of optical fiber cable (OFC) created links between 67 tehsil headquarters together with union councils and towns.
Through their KP initiatives, the USF began 18 major initiatives to reduce the gap between digital haves and have-nots. The expansion of 2G and 3G services has led to substantial financial investments throughout Chitral (Rs. 16.48 million) and Kohistan (Rs. 16.12 million), Khyber (Rs. 60.73 million), Mohmand (Rs. 22.65 million), D.I. Khan (Rs. 62.27 million) and Waziristan (Rs. 83.87 million). Major funds worth Rs. 1.09 billion were designated for 4G expansions while Swabi received Rs. 555 million and Swat obtained Rs. 250.23 million and Bannu received Rs. 251.03 million and Buner obtained Rs. 1.99 billion.
The government invested funds into projects that focus on specific economic development areas including tourism and highway connectivity development. The Tourist Destination-K1 and K2 projects have become beneficiaries of Rs. 196.87 million as well as Rs. 170.22 million in mobilization advances. A budget of Rs. 491.60 million was dedicated to enhancing telecom services on National Highways & Motorways (NH&MW) Lot-9 (N-35) to serve important road networks.
FATA Package-1 and KPK (FATA) Package-2 remain critical projects for expanding fiber optic infrastructure because they obtained Rs. 84.49 million for 132.99 km of OFC deployment and Rs. 1.5 billion for 742.54 km of fiber deployment that linked 37 towns. The funds distribution for UC-KP-LOT-18 included Rs. 913.40 million to deploy 283.11 kilometers of OFC which will establish data transmission to 27 union councils.
The telecom projects under USF were granted through a competitive bidding system that resulted in Jazz, Ufone, Telenor, Zong, PTCL, Dancom, Nayatel and additional ISPs signing contracts. The chosen companies operate under the turnkey service model by designing and installing network infrastructure while completing its commissioning tasks.
The USF requires all projects to follow Public Procurement Regulatory Authority (PPRA) rules as a condition for transparency and compliance. Service providers will only receive payments to their accounts after network verification together with third-party technical audits establish that services fulfill the established standards.
With these extensive efforts, the government remains committed to expanding digital connectivity, ensuring that even the most remote regions of Khyber Pakhtunkhwa have access to reliable telecom services. The investment in both mobile and fiber-optic networks is expected to drive socio-economic growth, boost tourism, and facilitate digital inclusion across the province.
