The Telecom Operators’ Association (TOA) has welcomed several measures in the Federal Budget 2026–27 but has simultaneously urged the government to introduce further reforms, particularly in mobile taxation and digital infrastructure duties, to strengthen affordability and accelerate Pakistan’s digital expansion.
The association said the budget reflects continued government support for digital development and macroeconomic stability. However, it stressed that additional steps are needed to reduce the cost of connectivity and encourage sustained investment in the telecom sector.
TOA particularly appreciated the proposed reduction in customs duties on raw materials used in local handset manufacturing, subject to approval through the Finance Bill, noting that it could improve device affordability and widen access to mobile services. It also welcomed the rationalization of the super tax, saying it would improve investor confidence and support growth in the digital economy.
Despite these measures, the association called for further rationalization of advance and withholding taxes on telecom services and mobile usage. It argued that current levies increase costs for consumers and limit affordability, especially in a country with around 206 million mobile subscribers but only 7.7 million active taxpayers, leaving most users unable to claim back deducted taxes.
TOA also urged policymakers to reduce duties on optical fiber infrastructure, describing it as essential for expanding broadband coverage, improving network quality, and enabling future digital services across the country. It added that reforms improving tax certainty, reducing administrative discretion, and enhancing ease of doing business would further strengthen investment flows into the sector.
The association emphasized that telecom is a foundational layer of Pakistan’s digital economy, supporting sectors such as financial services, education, healthcare, commerce, agriculture, manufacturing, and public administration. It said sustained investment in connectivity infrastructure is critical for long-term economic competitiveness and digital transformation.
Commenting on the budget, TOA Secretary General Kamal Ahmed said that telecom policy plays a multiplier role across the economy, with affordability and investment-friendly measures driving productivity, innovation, and financial inclusion beyond the sector itself.
Separately, TOA welcomed the government’s decision to make Right of Way (RoW) for telecom infrastructure free of charge. The association said the move would reduce deployment costs, accelerate broadband expansion, and improve nationwide connectivity.
TOA reiterated its commitment to working with the government and stakeholders to advance Pakistan’s digital agenda and promote a more investment-friendly and inclusive digital ecosystem.
