The GSMA Asia-Pacific has urged Pakistan to introduce key fiscal and regulatory reforms in the telecom sector to strengthen digital investment and expand connectivity, ahead of the Finance Bill 2026–27.

In a letter addressed to Federal Minister for Finance and Revenue Muhammad Aurangzeb, the global mobile industry body welcomed recent policy improvements in Pakistan’s telecom sector, particularly changes in spectrum pricing and payment flexibility. It noted that reforms such as phased payments and moratorium options reflect progress toward a more investment-friendly framework.

The GSMA also acknowledged improvements in mobile connectivity, including rising internet adoption and a narrowing usage gap, stating that coordinated efforts between the government and industry are beginning to produce positive results.

However, it stressed that sustaining this progress will require a more stable and predictable fiscal environment. The organisation argued that recent spectrum policy gains must be supported by broader tax reforms to ensure long-term investment and faster network expansion.

Citing international experience, the GSMA said that lower upfront costs, efficient spectrum pricing, and supportive tax structures typically lead to higher capital spending, quicker deployment of advanced networks, and stronger economic growth. It added that Pakistan still faces a significant digital usage gap that could be addressed through improved affordability and wider access to mobile services.

The GSMA outlined three main priorities for consideration in the upcoming budget: reducing upfront and distortionary taxes that discourage investment, improving affordability of mobile services and devices to expand adoption, and simplifying and harmonising the tax system to enhance transparency and long-term planning.

It concluded that a balanced and predictable fiscal framework, combined with ongoing spectrum reforms, could help accelerate digital investment and support broader economic development in Pakistan.