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—Finance Minister says NGMS/5G spectrum auction will accelerate digital growth and support IT exports, telecom expansion, and digital payments ecosystem in Pakistan
Aftab Maken
ISLAMABAD: Finance Minister Muhammad Aurangzeb said the NGMS/5G spectrum auction conducted by the Pakistan Telecommunication Authority marks a major step toward Pakistan’s digital transformation and expansion of the digital economy, as the government moves to improve connectivity, support IT exports, and strengthen telecom infrastructure.
Speaking at the spectrum auction ceremony in Islamabad on Tuesday, the finance minister said the auction concluded nearly eighteen months of work by the Spectrum Committee, which finalized the framework after detailed consultations aimed at balancing government revenue with long-term sector growth. He said the auction would help create an enabling environment for investment in digital infrastructure and allow Pakistan to move toward next-generation telecom services.
Officials said the auction is part of a broader push to modernize the telecom sector, which has seen rapid growth in recent years. Pakistan’s telecom subscriptions have reached nearly 200 million, while broadband users crossed 147 million by March 2025, according to data released by the Pakistan Telecommunication Authority. Broadband penetration has risen to about 59.8%, almost doubling since 2019, reflecting strong demand for mobile data and digital services.
Aurangzeb said the spectrum process had originally started during the previous policy cycle in 2021 and continued under successive governments, which ensured policy continuity. He said consistent policy direction is necessary for long-term investment in technology sectors, adding that digital connectivity is essential for economic growth, not only for telecom operators but also for exporters, freelancers, and online businesses.
The finance minister said improved connectivity would support the IT and IT-enabled services sector, one of Pakistan’s fastest-growing industries. Pakistan’s IT exports reached about $3.8 billion in FY2025, rising 18% year-on-year, according to official data reported by the Ministry of IT and industry sources. The growth has been driven by freelance services, software exports, and global outsourcing demand, making the sector a key source of foreign exchange.
He said the government is working to expand digital infrastructure, strengthen payment systems, and increase digitization of government transactions to support economic documentation. Officials believe wider spectrum availability will allow telecom companies to improve data speeds, lower costs, and expand coverage, which is necessary for technologies such as artificial intelligence, blockchain, and Web 3.0 applications.
Pakistan’s ICT sector has also benefited from policy incentives and training programs aimed at freelancers and startups. More than 4.5 million people have received digital skills training under government programs, while thousands of IT firms are now registered with regulators, contributing to a growing services trade surplus in the technology sector.
Industry experts say the rollout of 5G services could improve productivity across multiple sectors, including banking, education, health care, and agriculture, where reliable connectivity remains uneven outside major cities. The government has linked the spectrum auction to its Digital Pakistan vision, which aims to increase exports, promote financial inclusion, and reduce cash-based transactions.
Aurangzeb said stronger digital infrastructure is also critical during emergencies, noting that online education, remote work, and digital payments became essential during past crises. He said better connectivity will help the country respond more effectively to future disruptions while maintaining economic activity.
The finance minister thanked members of the Spectrum Committee, telecom regulators, and industry stakeholders for completing the auction process and said the next phase would focus on implementation and rollout of services. He expressed confidence that the NGMS/5G spectrum auction would help Pakistan attract investment, expand the telecom sector, and support long-term growth of the digital economy, which the government sees as a key pillar of future economic policy.
