Senate Pushes for Lower Mobile Taxes and Better Internet Connectivity in Pakistan

Mobile phone taxes in Pakistan

Efforts to enhance Pakistan’s digital infrastructure took center stage during a recent meeting of the Senate Standing Committee on IT and Telecommunications, with key discussions revolving around mobile taxes, internet connectivity, and IT export performance. The committee emphasized the need for affordable technology access and robust connectivity, signaling critical advancements for the nation’s digital future.

One of the most pressing issues discussed was the reduction of mobile phone taxes. The committee urged the Pakistan Telecommunication Authority (PTA) to advocate for lower taxes, making mobile devices affordable for the general public. However, the PTA clarified that taxation decisions fall under the Federal Board of Revenue (FBR), not its jurisdiction. Affordable mobile phones are crucial for bridging the digital divide, especially in underserved regions. This call to action reflects the committee’s commitment to empowering citizens through accessible technology.

The Secretary IT and Telecom presented significant updates on the country’s digital infrastructure. The fiberization policy and the anticipated rollout of 5G technology are expected to revolutionize internet services nationwide. These initiatives aim to enhance speed, reliability, and access to high-speed internet, essential for Pakistan’s economic and social growth.

Highlighting the nation’s IT export performance, an official from the Ministry of IT revealed a 37% growth in exports in 2024. Exports reached $3.3 billion in the first 11 months, up from $2.4 billion during the same period in 2023. While the recovery from COVID-19 disruptions has been robust, the compound annual growth rate (CAGR) over the past five years stood at 23%, signaling room for accelerated progress in the IT sector. These figures underline the sector’s potential to contribute significantly to Pakistan’s GDP.

The Secretary IT and Telecom announced the addition of four new submarine cables to improve connectivity, with three set to become operational within a year. This move is expected to enhance international bandwidth and reduce latency for users across Pakistan. Despite these advancements, senators raised concerns about persistent connectivity issues in regions like Balochistan and Khyber Pakhtunkhwa. Daily disruptions and difficulties in securing permits for mobile towers remain significant hurdles. Similarly, complaints about slow internet speeds in Sindh, particularly in Larkana, highlighted the uneven distribution of connectivity improvements despite considerable investments.

Chairman PTA Major General (R) Hafeez Ur Rehman acknowledged the fiber connectivity challenges in Balochistan, which have contributed to poor internet performance in the region. Internet shutdowns in certain districts were also discussed, with senators emphasizing the adverse effects on education, businesses, and overall communication.

To address connectivity disparities, the Universal Service Fund (USF) has launched projects in Ex-FATA with a ₨. 3 billion investment aimed at improving internet services in merged districts. These initiatives are expected to bridge the digital divide and provide equitable access to connectivity for underserved communities.

The discussions during the Senate Standing Committee meeting highlight a critical need for collaboration among government entities, telecom operators, and stakeholders to address digital infrastructure challenges. Efforts to lower mobile taxes, expand fiber networks, and invest in 5G technology signify Pakistan’s ambition to become a digitally inclusive nation. These advancements are essential for economic growth, global competitiveness, and social development in the digital age.