Pakistan's telecom sector seeks duty free imports for 5G equipment

Pakistan may lose $1.8-4.3 billion due to delayed spectrum release, says GSMA
An undated image. — iStock
An undated image. — iStock

In order to ensure a successful 5G spectrum auction, Pakistan's telecom operators and the Global System for Mobile Communications Association (GSMA) presented a number of demands to the Spectrum Advisory Committee, which was chaired by Finance and Revenue Federal Minister Muhammad Aurangzeb.

In order to guarantee the prompt rollout of 5G services, which have the potential to greatly strengthen the nation's economy, the operators underlined the necessity of a favourable environment.

Lower reserve prices than in previous auctions, rupee-denominated pricing to reduce the risk of currency fluctuations, and 15-year interest-free payment plans to relieve financial strains are just a few of the concessions that the telecom industry has asked for.

Notably, to encourage adoption, they have also advocated for duty-free imports of smartphones and 5G equipment.

Over the next five years, Pakistan may lose between $1.8billion and $4.3billion in economic benefits due to delays in the spectrum release, according to GSMA officials.

The operators emphasised how important it is to settle unresolved issues, especially those involving the 2600 MHz band, in order to guarantee fair competition.

The government is expected to carefully consider the telecom sector's proposals, even though the Spectrum Advisory Committee did not provide immediate relief.

To ensure sustainable network investment, the GSMA officials urged the government to take a balanced approach, emphasising the need for fair pricing that is in line with Pakistan's economic realities.

Pakistan's economy and digital landscape may be significantly impacted by the successful rollout of 5G services, which is why the telecom industry is calling for favourable conditions.