Unlocking Pakistan's Digital Potential: Why A Smarter Approach To 5G Is Needed

By: Kevin J Murphy

Pakistan stands at a pivotal moment in its digital journey. With mobile broadband usage growing and digital services increasingly woven into daily life, the time is ripe to introduce 5G.

But for this next-generation technology to fulfil its promise, Pakistan needs more than just technical readiness – it needs smart policies and a supportive ecosystem that will enable rapid, inclusive, and sustainable rollout. 

As the country transitions, considering the full 5G ecosystem is essential, including sectors and industries benefiting from connectivity.

Elements like spectrum, infrastructure, devices, inclusion, and digital literacy must align for widespread national impact.

Rethinking spectrum policy

One of the key obstacles is spectrum pricing. Several past auctions have seen reluctance to participate actively, and at times, key bands remained unassigned, primarily due to high reserve prices.

This has influenced the pace and scale of 4G expansion.

As Pakistan looks ahead to 5G, spectrum availability and pricing remain important factors that will guide rollout strategies and investment decisions.

Rather than treating spectrum as a short-term revenue source, policymakers must view it as a long-term investment and an enabling factor for national productivity.

Affordable spectrum pricing - including options like deferred payment models and local currency-based arrangements - would allow mobile operators to invest more aggressively in coverage, service quality, and innovation.

This in turn would stimulate digital growth, enabling the government to reap higher tax revenues through expanded GDP in the medium term.

Delaying 5G rollout by just two years could cost Pakistan up to USD 1.8 billion in lost GDP between 2025 and 2030. Put simply, a rational pricing strategy today will yield far greater dividends tomorrow.

Smarter infrastructure investments

Infrastructure, too, will play a central role. While 4G networks now comprise more than two-thirds of all mobile connection in Pakistan, 5G's high-speed capabilities require enhanced backhaul, site density, and network modernization.

Ericsson's experience across emerging markets shows that energy-efficient, multi-band radios and infrastructure-sharing models can significantly lower deployment costs.

For example, new radio units have been shown to deliver up to 35% energy savings compared to previous generations, a vital consideration in Pakistan's cost-sensitive market.

These kinds of smart investments make 5G viable even in low- environments.

Making access affordable

But rolling out 5G is only half the challenge. The other half is ensuring that people can actually use it. That means tackling device affordability and addressing the country's digital usage gap.

While smartphone ownership is rising, only 49% of Pakistan's population owns a smartphone. Without affordable 5G-capable devices, a large portion of the population risks being left behind.

Just as important is removing fiscal barriers to connectivity: mobile users in Pakistan currently face some of the highest taxes in the region, including a 15% advance income tax and a 19.5% sales tax on mobile services.

Reforming this tax burden will immediately make mobile internet more affordable, driving adoption and usage.

Driving inclusion and impact

Beyond economics, there is a broader societal imperative.

5G has the potential to transform education, healthcare, agriculture, and industry. Remote classrooms and clinics powered by 5G could bring vital services to underserved areas.

In agriculture, reliable 5G coverage can support precision farming and reduce post-harvest losses, contributing to a potential 1.8% long-term GDP increase through rural innovation.

Urban centers can benefit from smarter infrastructure, from traffic management to environmental monitoring.

With Pakistan's strong focus on mining and port development, the adoption of 5G technology has the potential to significantly enhance productivity and unlock the sector's full capabilities.

But for these gains to be realized, digital inclusion must be front and center.

That means investing in digital literacy, especially for women and rural communities, and ensuring robust data governance and cybersecurity frameworks that build trust in digital services.

Pakistan's digital usage gap remains wide, but targeted inclusion efforts can bridge it and bring more people into the digital economy.

Pakistan has already taken steps in the right direction.

The thriving fintech sector – particularly in mobile money – is also creating a strong foundation for future 5G-enabled services.

With digital wallets and branchless banking rapidly expanding, the sector is enhancing financial inclusion and has the potential to significantly increase financial participation and individual economic empowerment.

Initiatives under the Digital Pakistan vision show a commitment to innovation and connectivity. But momentum must now accelerate.

By taking a holistic approach – one that balances cost with inclusion, innovation with accessibility – Pakistan can not only deploy 5G successfully but also unlock its broader digital future.

By prioritizing affordable spectrum, modern infrastructure, and inclusive access, Pakistan can lay the foundation for a stronger digital economy and a more connected society.

The writer is the Vice President and Head of Customer Unit North Middle-East at Ericsson Europe, Middle East & Africa.

Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only.