ECC approves Spectrum Auction Plan

December 23, 2025 (MLN): Pakistan took a major step toward accelerating its digital and financial inclusion agenda as the Economic Coordination Committee (ECC) on Tuesday approved the recommendations of the Spectrum Auction Advisory Committee, chaired by Finance Minister Muhammad Aurangzeb.

This development has paved the way for the country’s largest-ever spectrum auction.

Addressing a joint news conference in Islamabad alongside Federal Minister for Information Technology and Telecom Shaza Fatima Khawaja, the finance minister said the approval marked the culmination of nearly a year-long process aimed at taking the long-pending spectrum auction “to the finishing line.”

Following the ECC’s clearance, the recommendations will now be placed before the federal cabinet for final approval.

Aurangzeb described spectrum auction as a critical enabler of Pakistan’s broader Digital Pakistan vision, stressing that digitalisation fundamentally translates into faster, cheaper and better services.

He said digital inclusion and financial inclusion were central to the country’s growth paradigm, warning that unsold spectrum directly results in economic loss.

He noted that the Spectrum Auction Advisory Committee, which included the IT minister and the Pakistan Telecommunication Authority (PTA) chairman, engaged National Economic Research Associates (NERA), a reputed international consultant, to conduct extensive stakeholder consultations.

These included telecom operators, consumer focus groups and regulators, alongside a detailed review of international and regional benchmarks.

Based on this exercise, recommendations were finalised on spectrum pricing, payment terms and auction design, which were approved by the ECC through a “Pakistan-first” lens.

Briefing the media, IT Minister Shaza Fatima Khawaja said the government aims to complete the auction by late January or early February next year.

She said the PTA would issue the information memorandum following cabinet approval, after which consultations and negotiations with telecom stakeholders would take place.

Highlighting Pakistan’s connectivity challenges, the IT minister said the country’s 240 million population is currently operating on just 274 MHz of spectrum, compared with countries like Bangladesh, where a smaller population uses around 600 MHz.

She likened the situation to forcing eight lanes of traffic through just two lanes, resulting in congestion and poor internet quality.

She revealed that the upcoming auction would offer nearly 600 MHz of additional spectrum, making it the largest auction in Pakistan’s history. While two bands, 1800 MHz and 2300 MHz, have been auctioned previously, all other bands will be auctioned for the first time.

This, she said, would significantly improve 3G and 4G services and enable the introduction of 5G in Pakistan for the first time.

Under the auction conditions, telecom operators will be required to complete network rollouts within four to six months, with visible improvements in service quality expected within the first four to five months.

The government aims to roll out 5G services within six months of the auction’s completion.

Khawaja also linked the auction to the government’s wider digital transformation drive under the Digital Nation Pakistan Act, noting that digitisation efforts across institutions such as the Federal Board of Revenue and the interior ministry rely fundamentally on high-quality internet connectivity.

She said the government’s “Connect 2030” plan targets average internet speeds of up to 100 Mbps over the next five years and aims to significantly improve Pakistan’s global internet speed rankings within three years.

She added that the abolition of right-of-way charges, backed by the finance ministry, would spur investment in fibreisation, which currently stands at less than 5%.

The auction of the 3,500 MHz band would also enable fixed wireless access, allowing fibre-like internet speeds to reach homes more quickly where physical infrastructure rollout takes time.

The IT minister further said that spectrum sharing policies had been finalised, while the cabinet is expected to approve the Mobile Virtual Network Operators (MVNO) policy soon, which would attract new telecom brands, increase investment and enhance service quality.

Both ministers acknowledged the role of the PTA, the Frequency Allocation Board, the Special Investment Facilitation Council (SIFC), and legal institutions in vacating spectrum over the past 18 months, increasing available spectrum nearly tenfold.

Aurangzeb expressed confidence that the auction, aligned with international best practices, would be successfully concluded, strengthening Pakistan’s digital economy and long-term growth prospects.