Pakistan is set to take a major step toward next-generation digital infrastructure as the 5G/Next Generation Mobile Services (NGMS) spectrum auction is scheduled for March 10, 2026, marking a critical milestone in the country’s digital and economic transformation.
The auction, to be conducted by the Pakistan Telecommunication Authority, will offer spectrum across the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands, releasing approximately 597 MHz of spectrum with a minimum revenue target of around $630 million.
Addressing Rising Demand and Spectrum Shortages
The move comes amid rapidly growing data consumption, driven by over 200 million cellular subscribers and nearly 150 million broadband users nationwide. Industry experts note that existing spectrum capacity is under pressure, making 5G essential to sustain service quality and future growth.
5G technology is expected to deliver up to 20 times faster speeds than 4G, ultra-low latency, and massive device connectivity, enabling advanced digital services across multiple sectors.
Phased Rollout from 2026 to 2035
According to the auction framework, operators will be required to meet phased rollout obligations between 2026 and 2035. Initial deployment will focus on major urban centers, including Islamabad/Rawalpindi, Karachi, Lahore, Peshawar, and Quetta, covering at least 10% of existing 4G sites in provincial capitals.
Subsequent phases will extend coverage to additional cities, key economic zones, and nationwide networks. Supporting measures include expansion of fiber backhaul to achieve a 20–30% Fiber-to-the-Site ratio, promotion of local 5G device manufacturing, and enforcement of coverage and quality benchmarks.
With telecom teledensity at around 81% and strong 4G penetration, officials say Pakistan is technically positioned for the transition.
Economic Impact and GDP Growth
Independent economic assessments highlight the significant economic upside of timely 5G deployment. An Ericsson-commissioned Analysys Mason study estimates that 5G could add $4.7 billion to Pakistan’s GDP, delivering a benefit-to-cost ratio of 2.8, while contributing 0.3%–0.46% additional annual GDP growth through 2035.
Now broader international projections suggest Pakistan could unlock $4–45 billion in cumulative 5G-enabled economic value by 2035, depending on rollout speed. Conversely, analysts warn that a two-year delay could result in approximately $1.8 billion in lost GDP between 2025 and 2030.
Boost to IT Exports and Digital Economy
The government has set ambitious targets of $5 billion in IT exports in FY26, scaling to $10 billion by FY29 under the Uraan Pakistan initiative, with a longer-term goal of a $25 billion digital economy.
5G is expected to play a central role by enabling ultra-reliable, low-latency connectivity for cloud computing, artificial intelligence, remote collaboration, fintech, and global freelancing platforms, strengthening Pakistan’s competitiveness in international digital markets.
Sectoral Transformation
Experts say 5G will drive productivity gains across key sectors:
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Agriculture: Precision farming using IoT sensors, drones, and real-time analytics could raise crop yields by 15–20% and cut input costs by 10–15%, benefiting a sector that employs nearly 40% of the workforce.
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Industry: Automation, smart factories, and predictive maintenance under Industry 4.0 are expected to enhance efficiency in manufacturing, mining, and services.
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Education: Immersive learning through AR/VR and AI-enabled platforms could help bridge rural-urban education gaps.
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Healthcare: In underserved regions such as Balochistan and Gilgit-Baltistan, 5G-enabled telemedicine and remote diagnostics are expected to improve access to healthcare services.
Foreign Investment and Policy Signaling
A successful auction and rollout are expected to help reverse declining telecom-sector foreign investment and attract $5–7 billion in new investments across telecom infrastructure, data centers, and digital services.
Pakistan is also participating in the Digital FDI-Enabling Project, implemented under the World Economic Forum and the Digital Cooperation Organization, aimed at strengthening digital investment ecosystems through improved infrastructure and technology adoption.
Litigation and Regulatory Clarity
Past delays in Pakistan’s 5G timeline have been linked to litigation involving approximately 140 MHz of spectrum in the 2600 MHz band, considered critical mid-band spectrum for 5G. Authorities have clarified that no stay order exists preventing the auction and that disputed spectrum will not block the release of remaining bands.
Officials emphasize that prolonged legal disputes risk slowing national digital progress and widening the gap with regional peers such as India, Bangladesh, and Vietnam, all of which have already launched 5G services.
However with the auction date now set, policymakers and industry stakeholders view March 10, 2026, as a decisive moment for Pakistan’s digital future. Analysts say timely execution will be critical to unlocking economic gains, attracting investment, and positioning 5G as the backbone of long-term growth, exports, and competitiveness.
