Is Pakistan ready to launch 5G?

While average revenue per user is said to be rising in rupee terms, it's reportedly undergoing a downward trend in terms of dollar
An undated image. — Depositphotos
An undated image. — Depositphotos

Given authorities' seemingly firm resolve to address connectivity challenges and lawmakers' inclination to approve bills normalising digitalisation in the country, it appears that the government is geared up to launch 5G in Pakistan.  

However, given the economic constraints the country is faced with, many wonder if Pakistan is ready to sustain the transition to 5G. 

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Similar was the indication in the annual report for 2024 issued by the Pakistan Telecommunication Authority (PTA), stating that the developing nation is unlikely to withstand the 5G revolution despite the ever-increasing accessibility of wireless telecommunication services like mobile and broadband. 

In line with a worldwide transition, Pakistan's shift to 5G corresponds to the ever-decreasing investment in the telecom sector, witnessing a huge drop from a peak of around $1.6 billion in 2021-22 to $765 million in 2023-24. 

While the average revenue per user is said to be rising from the viewpoint of the rupee, it's reportedly undergoing a downward trend in terms of the dollar compared to other comparable countries. 

According to Wireless and Internet Service Providers Association of Pakistan (Wispap) Chairman Shahzad Arshad, this “reflects that the market is very price sensitive...data usage is increasing [but] operators face challenges in monetising it effectively. This impacts their ability to invest in large-scale projects like 5G, which requires significant capital.” 

The annual PTA report acknowledges the costly burden on telecom operators that is linked to the adoption of the next-generation broadband technology. It also highlighted that the up-front investments are estimated to take some time to pay off and might trouble the telecom operators. 

As noted by Jazz CEO Aamir Ibrahim, another factor which is likely to impede 5G penetration in the country is the lack of 5G-capable devices and unaffordable prices.