Telecom

Pakistan Prepares for 5G Auction with 606 MHz of New Spectrum

The Frequency Allocation Board (FAB) has identified 606 MHz of spectrum across six bands for Pakistan’s upcoming 5G auction, a move officials say will boost next-generation connectivity and drive digital transformation.

The newly allocated spectrum spans the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands. This expansion offers more than double the country’s current capacity, creating a strong foundation for nationwide 5G deployment.

To oversee the process, the government has formed a Spectrum Advisory Committee led by Finance Minister Muhammad Aurangzeb. The committee will guide policy decisions, finalize auction design, and set rollout targets.

The Pakistan Telecommunication Authority (PTA) has engaged US-based consultancy NERA to craft a detailed strategy for spectrum valuation, auction structuring, and attracting foreign investment. Recommendations will be submitted to the advisory committee for final approval.

Officials said the auction is expected within months, following the issuance of a federal policy directive. Meanwhile, the government is prioritizing infrastructure readiness, promoting tower sharing, accelerating base station fiberization, and waiving right-of-way charges to reduce costs.

The Ministry of IT and Telecommunication (MoITT) is also developing two IT parks under the Public Sector Development Programme (PSDP) to support innovation and digital entrepreneurship.

The ministry reinforced incentives for the ICT industry, including 100% foreign ownership, full profit repatriation, a 0.25% final tax for IT exports, and three-year tax credits for PSEB-registered startups. IT exporters can now retain 50% of foreign earnings in Special Foreign Currency Accounts for international payments.

Dedicated working groups with representatives from the FBR, SBP, MoITT, and private sector associations are actively addressing industry concerns, aiming to enhance business ease in the IT and telecom sector.