Since Pakistan first began discussing 5G deployment, expectations have consistently outpaced reality. As of early 2026, the nation is again preparing to auction 5G spectrum but only after years of delays that have stunted digital infrastructure development, reduced telecom quality, and risked significant economic loss. This article dissects the root causes of delay, the current state of play, the risks for Pakistan’s digital economy, and policy recommendations to ensure that the forthcoming auction delivers tangible benefits.
The Current State of the 5G Auction
The federal government has approved a policy to auction 5G spectrum, and official plans now target an auction in early 2026 likely toward the end of February after decades of delay. The Pakistan Telecommunication Authority (PTA) is awaiting the formal policy directive that will allow it to issue the Information Memorandum, which outlines auction terms and regulatory frameworks. Without that directive, the auction cannot proceed.
Officials report that around 600 MHz of spectrum across multiple bands is planned for auction, significantly more than the approximately 274 MHz currently allocated for mobile services. Once spectrum is allocated and the auction concludes, operators can activate 5G bands on their base station networks.
Despite this progress, the 5G rollout remains fragile. Legal disputes, regulatory indecision, and infrastructural challenges continue to slow the process.
Why the Auction Has Been Delayed
1. Regulatory Uncertainty and Legal Disputes
One of the primary causes of delay has been ongoing litigation tied to spectrum allocations and corporate mergers. Courts have frozen significant blocks of spectrum that were supposed to be included in the auction for example, large portions of the 2600 MHz and other bands are entangled in legal challenges. Telecom operators have challenged spectrum re-farming decisions and financial terms, resulting in procedural delays that block PTA’s ability to release spectrum.
In addition, decisions around the PTCL-Telenor merger stalled the auction process, as regulatory approval impacted the advisory committee’s ability to finalize policy and auction frameworks. Although some merger issues have been resolved, their impact on the process timeline has been enduring.
2. Policy and Administrative Bottlenecks
Even after federal cabinet approval, the approved policy summary has not yet been formally transmitted to the PTA, preventing the agency from taking decisive action. This illustrates a deep administrative lag that substantially undermines regulatory efficiency.
Other foundational policy frameworks, such as the Mobile Virtual Network Operator (MVNO) regulatory structure, have also been pending approval for months. Without these frameworks, market competition and spectrum uptake could be stifled.
3. Economic and Fiscal Concerns
Telecom operators have voiced concerns over high operational costs, heavy taxation, and foreign-currency-pegged spectrum license pricing factors that inflate investment risk and reduce their appetite for bidding. Regulatory fees tied to spectrum have risen significantly, and without incentives or local currency pricing, operators argue that economic conditions make large investments in 5G spectrum less feasible.
4. Infrastructure Preparedness and Market Conditions
Experts and telecom professionals have argued that much of Pakistan’s network infrastructure—including backhaul fiber, tower densification, and device availability is not yet prepared for efficient 5G deployment. Calls from industry insiders suggest that focusing on improving 4G network quality should precede next-gen rollout, due to limited device penetration and insufficient underlying telecommunications backbone.
The Costs of Continued Delay
Delaying the 5G spectrum auction is not just a regulatory inconvenience but an economic setback. Multiple independent estimates suggest that Pakistan could lose between $1.8 billion and $4.3 billion in economic output over the next five years if delays continue. These figures encompass impacts on service quality, productivity, and digital inclusion, particularly for sectors relying on high-speed connectivity such as IT services, education, health, and digital exports.
Telecom operators have already expressed that network congestions driven by growing smartphone and data usage are harming the user experience and risking the broader Digital Pakistan vision. Without additional spectrum, quality degradation will likely worsen.
What Must Be Done: Policy and Strategic Recommendations
To ensure Pakistan’s 5G auction achieves its intended economic impact, several practical steps are essential:
1. Fast-Track Legal Resolutions
Regulatory bodies and courts must prioritize disputes related to spectrum allocation. Establishing a specialized telecom tribunal with statutory deadlines could minimize litigation bottlenecks that delay auction-critical spectrum releases.
2. Issue the Policy Directive Without Further Delay
Government agencies must immediately transmit the approved policy directive to the PTA. This will allow the formal auction process to begin, including the crucial step of publishing the Information Memorandum that telecom operators require to prepare bids.
3. Rebalance Economic Incentives
The auction design should consider local currency pricing, flexible payment terms, and fiscal incentives that lower entry barriers for operators especially in a market with lower ARPU (average revenue per user) compared to regional peers.
4. Strengthen Foundational Infrastructure
Concerted public-private investments are needed to expand fiber backhaul coverage, tower densification, and device affordability. Without these infrastructural fundamentals, 5G will not yield wide economic benefits.
5. Complement with Regulatory Frameworks
Finalizing the MVNO framework and other competitive policies will enhance market participation, lower barriers for new entrants, and encourage innovative service models beyond traditional telcos.
Conclusion
Pakistan’s quest for 5G has been akin to a marathon with repeated false finishes. The 2026 spectrum auction represents a critical moment not just for telecom operators but for the digital future of the nation. Structured properly, the auction can unlock improved connectivity, enable high-growth sectors, and drive investment. However, realizing these benefits hinges on decisive regulatory action, economic recalibration, and infrastructure readiness.
For Startupdotpk’s audience of founders, investors, and policymakers, this moment is both a warning and an opportunity: the 5G auction must not be another delay; it must be a launchpad for Pakistan’s digital economy.
