Business Desk 
Jun 13, 2025
Much to the dismay of those bearing the sluggish broadband and internet speeds across Pakistan, the government has significantly reduced its revenue expectations from 4G/5G licence fees in the federal budget for 2025-26, instead prioritising collections from mobile phone-related charges.
Official documents detailing mobile phone taxes in the next year's budget revealed that Rs22.612 billion has been allocated under non-tax revenue from 4G/5G licence fees for the next fiscal year.
This registers a steep decline from the Rs32.612 billion initially estimated for 2024-25, which was later revised to Rs27 billion.
The reduction in expected spectrum revenue indicates either delays in the 5G rollout or lower-than-expected interest from telecom operators.
Despite the IT ministry and the Pakistan Telecommunication Authority (PTA) signalling preparations for 5G trials, the revised revenue target suggests limited progress in the auction process.
On the other hand, the government has increased its estimate for income from mobile handset levies to Rs12 billion for 2025–26, up from Rs10 billion in the current fiscal year.
This shift reflects a reliance on consumer-level charges amid slower telecom sector growth.
Moreover, the PTA surplus, a major source of non-tax revenue, is expected to yield Rs1.1 trillion next year, down from Rs1.2 trillion budgeted for 2024-25.
This indicates a reliance on existing telecom infrastructure and consumer taxation, meaning consumers may face higher telecom-related taxes due to delays in 5G implementation.
