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Pakistan is gearing up for a major technological shift, as the long-awaited rollout of 5G services is expected to begin next year. The introduction of 5G is forecast to significantly enhance how mobile phones operate, bringing new and advanced features to everyday users. However, the Pakistan Telecommunication Authority (PTA) has cautioned that these advancements are unlikely to succeed unless the government first reduces heavy taxes on telecom sector raw materials.
The federal government has already taken the first major step. The prime minister has directed the Ministry of Information Technology and Telecom, along with the PTA, to complete the auction of the 5G spectrum by February 2026. This move is expected to stimulate innovation across mobile-based services and accelerate Pakistan’s digital transformation.
According to PTA figures, Pakistan currently has 196 million mobile subscribers, including 148 million mobile broadband users. Yet despite this massive user base, fewer than five percent of all mobile phones in the country are 5G-ready. Without affordable, compatible devices, the transition to 5G could be slow and uneven.
New Features Expected With 5G Phones
The introduction of 5G is not just about faster internet. It is expected to unlock a variety of cutting-edge features in mobile devices, including:
- e-SIMs
- Wireless charging
- NFC-based nano-banking through barcode scanning
- Faster and more secure mobile payments
- Enhanced device-to-device communication
Most of these improvements depend on manufacturers adopting advanced processors and chipsets designed to support 5G functionality. This shift will inevitably increase production costs, making it critical for the government to ease financial pressure on local manufacturers.
PTA Director General (retired Brig.) Amer Shahzad stressed that manufacturers must prepare well in advance to ensure consumers have access to suitable devices once 5G services officially launch. “If the cost of 5G-compatible sets is very high, users will not opt for them,” he warned.
Smartphone Access Still Limited
The Pakistan Mobile Phone Manufacturers Association (PMPMA) reveals a concerning reality: around 40% of the population still uses feature phones, and nearly 10% do not own a phone at all.
Local production remains strong, with around 1.2 million smartphones and 1.5 million feature phones manufactured every month, totalling roughly 30 million devices annually. But despite this progress, access to advanced phones remains limited due to high taxation, inflation, and increasing production costs.
Zeeshan Miannoor, a senior member of PMPMA and a representative of Inovi Telecom, explained that upgrading from 4G to 5G production will significantly raise costs. He estimated that advanced chipsets and processors required for 5G phones could add between $30 and $200 to the manufacturing cost, depending on the model.
“Features like cameras or speakers may remain unchanged,” he said. “But the upgraded motherboard that carries the 5G-compatible chipset will enable functions like wireless charging and e-SIMs.”
He cautioned that if costs rise too sharply, consumers may hesitate to upgrade, slowing the overall adoption of 5G.
Taxation: The Biggest Barrier to 5G Adoption
The PTA has repeatedly emphasized that Pakistan’s high mobile phone prices, driven largely by heavy taxation, are one of the biggest obstacles to digital expansion. The authority has recommended that the government reduce or remove certain taxes to help lower consumer prices and improve mobile penetration.
Some of the taxes highlighted by the PTA include:
- 19.5% duty on imported components used in mobile manufacturing
- Taxes on backend telecom equipment
- Import duties on essential parts required by network operators
According to the regulator, lowering these taxes would not only make smartphones more affordable but would also encourage higher usage of mobile broadband. This, in turn, would increase revenue for the government through greater participation in digital services.
The PTA argues that a broader digital ecosystem—boosted by cheaper devices and stronger connectivity—would help Pakistan transition more smoothly into the 5G era. Without these steps, 5G rollout might face roadblocks, and consumers may not be able to benefit from the improved technologies the new network promises.
