7 August 2025, Islamabad Pakistan stands at a pivotal moment in its digital journey. At the second edition of the GSMA Digital Nation Summit Islamabad, the Ministry of Information Technology and Telecommunication (MoITT), Pakistan Telecommunication Authority (PTA), and mobile network operators were recognised for advancing the nation’s digital landscape.
The GSMA also launched its latest report, Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity, mapping out urgent policy priorities to close one of Asia Pacific’s largest mobile internet usage gaps and position Pakistan as a regional leader.
A $1.4 Trillion Opportunity But at Risk
Presenting the report’s findings, Julian Gorman, GSMA’s Head of Asia Pacific, warned that Pakistan risks missing out on a projected US $1.4 trillion GDP boost for the region by 2030.
Despite 81% mobile broadband coverage and 68% smartphone ownership, only 29% of Pakistan’s population used mobile internet in 2024 leaving a 52% usage gap, the highest among major Asia Pacific markets.
“Pakistan has the talent, ambition, and vision to be a digital powerhouse, but policy barriers are holding it back,” Gorman said. “High spectrum prices, heavy sector-specific taxes, and regulatory uncertainty are limiting investment when affordable, high-quality connectivity is needed most. Reform is no longer optional, it is essential.”
Key Findings from the Report
Spectrum scarcity remains a pressing challenge for Pakistan. The country has one of the lowest allocations of IMT spectrum in the Asia Pacific region, which limits the capacity and quality of its mobile networks. This issue is compounded by the delay of the planned 5G multiband auction, slowing down the nation’s readiness for next-generation connectivity and potentially impacting its ability to compete regionally in advanced digital services.
Unsustainable spectrum pricing is another critical concern. Across the Asia Pacific, spectrum cost-to-revenue ratios have risen sharply from 3% in 2014 to 9% in 2023. In Pakistan, excessively high spectrum prices threaten both the coverage and the speed of mobile networks. Without more affordable and sustainable pricing strategies, operators may struggle to expand services or invest in network improvements.
High taxation on the mobile sector is further constraining growth. With combined taxes on mobile usage reaching 33% among the highest in the region the cost of connectivity for consumers remains steep. This not only suppresses demand but also makes it harder for low-income and underserved populations to afford consistent access to digital services.
A significant mobile internet usage gap also persists. While 81% of the population has access to mobile broadband and 68% own a smartphone, 52% of those covered do not use the internet. Barriers such as affordability, digital literacy, and lack of trust in online platforms contribute to this gap, preventing millions from participating in the digital economy.
There has, however, been notable gender progress. Women’s mobile internet adoption in Pakistan jumped from 33% to 45% in 2024 the largest increase among all countries surveyed. This demonstrates that targeted initiatives and inclusive policy measures can deliver measurable results in bridging the gender digital divide.
Finally, digital fraud risk is an emerging barrier to broader adoption. Rising online scams and fraudulent activities are undermining public trust in digital platforms. Pakistan’s participation in the GSMA APAC Cross-Sector Anti-Scam Taskforce (ACAST) is a positive step toward addressing this challenge, but experts emphasise that these efforts must be scaled significantly to effectively restore confidence.
Government’s Response: Ambition and Action
Shaza Fatima Khawaja, Federal Minister for IT & Telecom, reaffirmed Pakistan’s commitment to a resilient and inclusive digital ecosystem:
- Achieved WebTrust-audited National PKI status (among 37 nations)
- Improved ITU ICT Development Index ranking by 14%
- Expanded to 200M+ telecom subscribers
- Added 10M new broadband users and saw 24% growth in internet consumption
- Launched AI-enabled data centres and cloud infrastructure
- Operationalised 40 Software Technology Parks
- Deployed new submarine cables
- Rolled out 17 telecom projects adding 1,825 km of optic fibre to connect over 500 underserved areas
“Our mission is simple: no one is left behind in Pakistan’s digital transformation,” she said.
GSMA’s Four Policy Priorities
- Comprehensive Spectrum Reform
- Price spectrum to balance government revenue with affordability and expansion.
- Release additional mid-band frequencies, publish a multi-year roadmap, and allow spectrum sharing/trading.
- Price spectrum to balance government revenue with affordability and expansion.
- Align Fiscal Policy with Digital Goals
- Reduce heavy mobile sector taxes and rationalise device/service duties.
- Introduce targeted incentives like tax credits for infrastructure and R&D to attract private capital.
- Reduce heavy mobile sector taxes and rationalise device/service duties.
- Build Digital Trust and Inclusion
- Scale anti-fraud initiatives such as the GSMA APAC Anti-Scam Taskforce.
- Accelerate adoption of GSMA Open Gateway APIs for security.
- Launch digital literacy programs, especially for women and rural communities, to close the 52% usage gap.
- Scale anti-fraud initiatives such as the GSMA APAC Anti-Scam Taskforce.
- Streamline Regulation for Innovation
- Create a predictable regulatory environment for 5G, IoT, and future services.
- Review network continuity policies, speed up “Always-On Network” approvals, and adopt tech-neutral, innovation-friendly rules.
- Create a predictable regulatory environment for 5G, IoT, and future services.
What This Means for Startups and Investors
If Pakistan moves decisively on the reforms outlined in the GSMA report, the payoff for its economy and its startup ecosystem could be transformative. Expanding affordable and reliable connectivity would dramatically increase the country’s addressable market, bringing millions of new users online. As affordability improves and digital trust is strengthened through anti-fraud measures and literacy programmes, the potential customer base for digital products and services will grow, unlocking new revenue streams for entrepreneurs across sectors.
A larger online population would also mean lower customer acquisition costs. Startups, particularly those in consumer-facing industries such as e-commerce, healthtech, and edtech, could reach and convert users more efficiently. Increased internet penetration in rural and underserved regions would also open up entirely new market segments, enabling inclusive growth rather than concentrating digital benefits in urban centres.
Policy reforms that create a stable and transparent regulatory environment could further boost investor confidence. Clearer rules on spectrum allocation, taxation, and emerging technologies would reduce uncertainty, making Pakistan a more attractive destination for both domestic and foreign capital. This in turn could stimulate more venture funding for local startups and accelerate the scaling of innovative solutions.
Most importantly, such an environment would open up opportunities in inclusion-focused innovation. With barriers to access reduced, sectors like fintech, edtech, regtech, cybersecurity, and AI services could flourish. Fintech startups could target the vast unbanked population with mobile-first solutions. Edtech providers could deliver affordable, local-language learning to remote communities. Regtech firms could help businesses navigate evolving compliance requirements, while cybersecurity companies could address the growing need for trust and safety online. AI services, from precision agriculture to intelligent healthcare diagnostics, could address Pakistan’s most pressing economic and social challenges at scale.
However, the window for action is narrowing. Delaying reforms risks leaving Pakistan further behind as other Asia Pacific economies accelerate ahead with 5G, IoT, and AI adoption. Without urgent intervention, Pakistan could find itself not only missing out on the $1.4 trillion digital opportunity but also losing its competitive edge in the global innovation economy. The choice is clear: act now to lead or risk falling irreversibly behind
The Bottom Line
Pakistan has the talent, infrastructure momentum, and government commitment to lead the region’s digital economy. The GSMA’s roadmap makes it clear: the country’s $1.4 trillion opportunity depends on urgent reform, smarter policy, and a focus on inclusion.
FAQ
The GSMA’s report urges Pakistan to address policy barriers such as high spectrum prices, heavy mobile sector taxes, and regulatory uncertainty. By implementing reforms, Pakistan can close its mobile internet usage gap, strengthen trust, and unlock a $1.4 trillion regional GDP opportunity by 2030.
Increased affordability, trust, and connectivity would expand the addressable market, reduce customer acquisition costs, attract investor confidence, and open new opportunities in fintech, edtech, regtech, cybersecurity, and AI-driven services.
Without urgent action, Pakistan risks falling further behind in 5G, IoT, and AI adoption, missing out on the $1.4 trillion opportunity, and losing competitiveness in the Asia Pacific’s rapidly advancing digital economy.
