GSMA Urges Pakistan to Reduce Telecom Taxes to Boost Digital Growth
GSMA has urged Pakistan to reduce telecom taxes and introduce targeted policy reforms to strengthen digital investment and accelerate connectivity across the country.
In a letter addressed to Federal Minister for Finance and Revenue Muhammad Aurangzeb, the global mobile industry body highlighted the need for a more predictable and investment-friendly environment in the upcoming Finance Bill 2026–27.
Positive Reforms Noted in Telecom Sector
The GSMA acknowledged recent improvements in Pakistan’s telecom policy framework, particularly reforms in spectrum pricing and flexible payment structures.
It described measures such as phased payments and moratorium options as a positive step toward encouraging long-term investment in the sector.
Concerns Over High Taxes and Costs
Despite these improvements, the organization warned that high taxes and rising service costs continue to limit digital adoption and sector growth.
It emphasized that Pakistan still faces a significant digital usage gap, largely driven by affordability challenges and uneven access to mobile internet services.
Key Recommendations for Finance Bill 2026–27
The GSMA outlined several priority areas for policymakers, including:
- Reducing upfront and distortionary taxes on the telecom sector
- Improving affordability of mobile devices and internet services
- Simplifying and harmonizing tax structures for better long-term planning
Call for Long-Term Digital Investment
The organization stated that a balanced fiscal strategy combined with ongoing spectrum reforms could help create a “virtuous cycle” of investment, innovation, and economic growth in Pakistan’s digital economy.
