Pakistan’s 5G rollout has faced another major roadblock, and the country’s digital economy is feeling the heat. Recent news from the National Assembly confirms that this much-anticipated auction is now likely to be further delayed into late 2025 or perhaps the first quarter of 2026. This isn’t a mere technical setback but a huge financial strain, which affects growth, investment, and-most critically-the future of Pakistani Tech Startups directly. I view it as a systemic failure from the perspective of a financial analyst; this calls for immediate intervention at high levels. This unnecessary delay has grown into an economic crisis that the government can no longer afford to ignore if it wishes to safeguard its fastest-growing sectors.
Unnecessary Delays Threaten Pakistani Tech Growth
The reason behind the delay is pretty clear now: litigation and administrative gridlock. Of the 194 MHz in the critical 2600 MHz band-the prime frequency for 5G-a whopping 140 MHz remains tied up in litigation. The government rightly has said that moving ahead with an auction when the prime spectrum is not fully available will be pointless.
This translates directly into business pain for each Pakistani Tech Startup. It is rightly pointed out by HCSTSI that this problem is contingent upon a whopping 29 years, a period of inefficiency indeed. The world is sprinting toward the deployment of 5G, while our local businesses are entrenched in the slow lane, significantly affecting other basic services such as e-learning, e-health, and most importantly, Pakistani Tech Startups’ contribution to the Global race.
The Spectrum Scarcity vs. Regional Standards
This is worsened further due to the lack of available and quality spectrum. Currently, our mobile operators have a meager 274 MHz of spectrum on which to rely, whereas most countries in the Asia-Pacific use 700 MHz or more. The huge deficit explains why internet quality is often poor in Pakistan and services suffer.
This scarcity thus directly hurts the competitive advantage of Pakistani Tech Startups. We presently rank among the top four most rapidly growing e-commerce markets in the world, but without the reliable 5G infrastructure, holding onto this competitive edge is just impossible. In addition, young freelancers, online businesses, and generally all ambitious Pakistani Tech Startups have to bear the economic brunt of this continuous delay. And that is where the coverage of pakistan tech news needs to shift from reporting the ‘what’ to the analysis of the ‘why’, and the ‘why’ is policy failure.
Loss of GDP and Investment
From an economic point of view, the delay in 5G is literally costing Pakistan billions. Preliminary estimates suggest 5G could increase Pakistan’s GDP by as much as 2 percent. This also means that every month of the delay represents a lost opportunity for a big, cyclical boost in economic growth, increased exports, and the concomitant formation of thousands of new jobs.
This also completely dampens FDI. Global telecom companies look for stability and clear timelines; when the timeline keeps on shifting due to internal disputes, global investors understandably shift focus and capital to markets like India (launched 5G in 2022) and Bangladesh (launched 5G in 2023). This ongoing uncertainty is crippling the growth trajectory of Pakistani Tech Startups reliant on foreign seed funding and venture capital.
5G Delay Costs Pakistan 2% GDP Growth Annually
The government should cease from giving excuses and begin to adopt the best global practices forthwith. The people of other countries solved this problem years ago by making it easier for investors:
- China offered the 5G spectrum free of charge, with a deferred payment model spread over 10 years.
- Saudi Arabia allowed operators to pay for the spectrum through installment-based payments.
In contrast, Pakistan’s process has become unnecessarily complex and prohibitively costly to scare away the requisite investment required to launch 5G.
- The required policy directive to officially kickstart the auction has not yet been issued.
- The legal challenges on the 2600 MHz band remain the single biggest bottleneck.
- The absence of finalized policy signals internal coordination gaps between the Ministry of IT, Finance Ministry, and PTA.
It delays progress on the Digital Pakistan initiative, which depends so much on high-speed connectivity for e-governance and digital banking.
The Government’s Efforts and the Road to 2026
To be fair, the government has taken some preparatory steps, indicating a bigger vision for the sector:
- An Advisory Committee was created on November 6, 2023, to oversee the auction process.
- The FAB has identified an astounding 606 MHz of new spectrum across multiple bands, representing a 200% increase over current availability.
- The Telecom Authority has hired NERA, a consultancy based in the U.S., to formulate a full auction and rollout strategy.
But these are only preparatory steps. If the timeline holds, the commercial rollout of 5G may realistically not begin until late in the year 2026, putting immense pressure on our already struggling 4G networks. Pakistani Tech Startups simply cannot afford to wait this long.
The government must act now to mitigate the economic damage. As a financial analyst, my direct solution is two-fold: Immediate Legal Clearance: The government should declare the controversial 2600 MHz spectrum a national economic emergency and fast-track the case to its final so as to ensure that the full 194 MHz becomes available immediately.
The country needs to be more investor-friendly, like China or Saudi Arabia, with policies such as deferred or installment-based payments in order to lure foreign telecom giants and guarantee a smooth, commercially viable launch in the shortest time frame. Protecting Pakistani tech startups means taking concrete steps to realize the full 2% GDP growth potential, not an endless delay.
