Staff Report
ISLAMABAD: Global telecom leaders and local industry stakeholders have raised alarms over Pakistan’s slow progress toward digital transformation, warning that persistent policy stagnation, excessive taxation, and infrastructure gaps threaten to push the country further behind its regional peers.
At the GSMA Summit in Islamabad, Julian Gorman, Head of Asia Pacific at the GSMA, lamented the absence of IT Minister Shaza Fatima Khawaja, calling it “unfortunate” at a time when decisive policy engagement is critical. He cautioned that without urgent reforms, “investors will walk away, and the people of Pakistan will pay the price.”
The GSMA identified three pressing challenges undermining Pakistan’s digital ambitions: high taxation on smartphones and broadband services, spectrum shortages, and inconsistent policymaking. The body’s newly launched report, Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity, revealed that customs duties and taxes on smartphones can reach 40%, while multiple layers of taxation on mobile broadband discourage adoption and deter investment.
Gorman urged Pakistan to follow the example of other IMF-program countries, such as Argentina, that have successfully reduced telecom taxes to encourage growth. He also called for accelerated spectrum allocation, expansion of satellite-based internet, and stronger safeguards for data privacy and digital trust.
Industry voices echoed these concerns. P@SHA Chairman Sajjad Syed warned that Pakistan’s declining IT export growth signals a migration of the country’s tech industry abroad. Telenor Pakistan CEO Khurrum Ashfaq highlighted power outages as a major operational hurdle, while PTA Chairman Maj. Gen. (retd) Hafeez Ur Rehman admitted the road to Digital Pakistan is “zig-zag and difficult,” but pointed to recent measures such as abolishing Right of Way charges for fiber optic installation.
Representing the government, Minister of State for Finance Bilal Azhar Kayani announced plans to fully digitize payments within 18 months, phasing out manual cheques entirely. “The only way to solve problems for the common man is through digital-driven solutions,” he said.
The summit’s discussions underscored an urgent need for cohesive, long-term reforms to prevent Pakistan from losing its competitive edge in the global digital economy.
