Pakistan’s Telecom Revenues Rise by Rs138 Billion Amid Digital Growth

ISLAMABAD: Pakistan’s telecom sector has witnessed remarkable growth in both revenue and digital infrastructure over the past year, according to a report by the Ministry of IT and Telecom. The sector’s revenues surged by Rs138 billion, rising from Rs817 billion to Rs955 billion. This substantial increase highlights the expanding role of telecommunications in Pakistan’s economy.

Under the leadership of Shaza Fatima Khawaja, Minister of State for IT and Telecom, the ministry also reported a significant rise in broadband subscribers, which grew from 127.6 million to 142.3 million. The report revealed an improvement in smartphone penetration, with active smartphones on the network rising from 59% to 64%, reflecting the growing adoption of mobile internet services across the country.

Local mobile manufacturing saw a noteworthy boost, as domestic production climbed from 21.28 million to 31.38 million devices. The telecom sector’s contribution to the national exchequer remained steady at Rs341 billion. Additionally, fiber connectivity for cell sites expanded by 12%, with 8,200 new sites connected to the network, enhancing high-speed internet accessibility.

Pakistan’s Internet Connectivity Upgrades

Pakistan’s internet infrastructure experienced substantial upgrades, marked by the launch of high-capacity submarine cables. These included the 2Africa cable with a capacity of 180Tbps, the Africa-1 cable with 96Tbps, and the PEACE cable also providing 96Tbps. These advancements have significantly enhanced the country’s global connectivity and bandwidth capabilities. Furthermore, internet services were extended to 813 Mauzas, benefiting nearly 974,363 people, alongside the installation of 2,000 kilometers of optical fiber cable (OFC) to support these expansions.

The IT Ministry’s report also highlighted a significant increase in IT exports, which grew by 27% year-on-year during the first seven months of FY 2025. Export earnings rose from USD 1,721 million in February 2024 to USD 2,177 million in February 2025, underscoring the sector’s growing contribution to Pakistan’s foreign exchange reserves.

Pakistan’s telecom sector also gained global recognition for its advancements. The country achieved a Tier 1 ranking in the 2024 Global Cybersecurity Index by the International Telecommunication Union (ITU). Additionally, Pakistan improved its position in the UN E-Government Development Index by 14 spots, rising from 150th place in 2022. The nation was also recognized as a “Tech destiNATION” at Gitex Global 2024, reflecting its growing prominence in the global tech landscape.

Further, the ITU ICT Development Index reported a 14% rise, driven by a 29% increase in mobile phone ownership and a 20% improvement in household internet access. Pakistani companies secured several prestigious awards, including more than 10 APICTA awards, the Asia-Pacific Meta Llama AI Awards, and the top spot in the LEAP 25 startup competition. These achievements highlight the sector’s progress in innovation and competitiveness.

Digital Transformation Initiatives in Pakistan

Efforts to transform Islamabad into a smart city gained momentum with the soft launch of the MyIslamabad App, which offers access to over 140 digital services. The government also launched the second Smart Village in Sambrial and transitioned 42 divisions and 176 departments to the e-Office system, achieving a 98% adoption rate.

The Ministry of IT and Telecom introduced various digital portals to enhance government services, including the Prime Minister’s Youth Program (PMYP), Hajj App, National Food Security, Apostille, OGRA, HRMIS, and e-Office. These initiatives aim to improve service delivery and accessibility for citizens.

Significant policy reforms were introduced to support the telecom sector’s growth. Key policies included the Digital Nation Pakistan Act 2025, National Space Policy, Cloud First Policy, and the establishment of the Telecommunication Appellate Tribunal Act 2024. Additionally, special Foreign Currency (FCY) accounts and an e-visa system were launched to facilitate business operations. New regulations for telecom equipment standards and the harmonization of Right of Way (ROW) rates were also implemented to streamline infrastructure development.

Pakistan became the first nation to join the Digital Foreign Direct Investment (DFDI) Initiative under the World Economic Forum and Digital Cooperation Organization. This move is expected to attract more international investment into the telecom and IT sectors.

Looking forward, the IT Ministry is focused on several key initiatives, including the National Fiberization Policy, Personal Data Protection Bill, National Semiconductor Policy, National AI Policy, and the National Freelancer’s Facilitation Policy. These policies are aimed at enhancing Pakistan’s position as a leader in the digital economy, fostering innovation, and attracting foreign investment.