GSMA Hosts Digital Nation Summit in Islamabad, Calls for Urgent Policy Reforms to Unlock Pakistan’s Digital Future
Islamabad – August 2025: The GSMA hosted the second edition of its Digital Nation Summit in Islamabad, celebrating the collaborative efforts of the Ministry of Information Technology and Telecommunication (MoITT), the Pakistan Telecommunication Authority (PTA), and mobile network operators in shaping Pakistan’s digital future.
During the event, GSMA unveiled a new report titled “Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity,” outlining key challenges and solutions to bridge the country’s significant mobile internet usage gap and position Pakistan as a digital leader in the Asia Pacific region.
A Digital Opportunity at Risk
Julian Gorman, Head of Asia Pacific at GSMA, shared key insights from the report. Despite 81% mobile broadband coverage and 68% smartphone ownership, only 29% of Pakistan’s population used mobile internet last year—creating a 52% usage gap, the highest in the region.
“Pakistan has the talent, ambition, and vision to be a digital powerhouse,” said Gorman. “But high spectrum costs, sector-specific taxes, and regulatory uncertainty are holding the country back.”
Report Highlights: Major Roadblocks and Opportunities
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Spectrum Allocation: Pakistan lags behind in IMT spectrum availability. The much-anticipated 5G spectrum auction has been delayed.
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High Spectrum Pricing: In 2023, spectrum cost-to-revenue ratios in the region reached 9%. Pakistan’s prices risk limiting coverage and speed.
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Heavy Mobile Sector Taxation: Combined taxes on mobile usage are 33%, among the highest in Asia, discouraging digital adoption.
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Massive Usage Gap: Despite coverage, over half of the population doesn’t use mobile internet, due to affordability, digital literacy, and lack of trust.
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Women’s Inclusion Gains: Female mobile internet usage increased from 33% to 45% in 2024, the largest jump in the region.
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Digital Fraud Threat: Rising cyber fraud is undermining trust. Participation in GSMA’s APAC Anti-Scam Taskforce is a step forward.
Government’s Vision and Achievements
Federal Minister for IT & Telecom, Shaza Fatima Khawaja, emphasized Pakistan’s commitment to digital transformation under Prime Minister Shehbaz Sharif’s leadership.
“Pakistan is not just adapting to the digital age—we are shaping it with purpose and precision,” she said.
Key milestones include:
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10 million new broadband users
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24% increase in internet usage
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Launch of AI-powered data centers
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40 new Software Technology Parks
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Over 1,800 km of optical fiber rolled out across 500 underserved areas
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14% improvement in the ITU ICT Development Index
Policy Recommendations: A Roadmap for Reform
The GSMA report lays out four priority areas to accelerate Pakistan’s digital journey:
1. Spectrum Reform
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Adopt balanced pricing to promote investment
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Release mid-band frequencies
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Develop a multi-year spectrum roadmap
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Enable spectrum sharing and trading
2. Tax and Fiscal Policy Alignment
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Reduce sector-specific mobile taxes
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Lower import duties on smartphones and services
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Offer R&D tax credits and infrastructure investment incentives
3. Boost Digital Trust and Inclusion
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Expand anti-fraud protections
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Roll out digital literacy programs, especially in rural and female populations
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Accelerate adoption of GSMA Open Gateway APIs
4. Streamlined Regulations
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Improve network resilience policies
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Approve “Always-On Network” frameworks
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Promote tech-neutral, innovation-friendly regulation
The Path Forward
“With the right policy environment, Pakistan can lead in areas like 5G, IoT, developer services, and IT outsourcing,” added Gorman. “Our report offers a clear roadmap—the time to act is now.”
