ADB Warns Pakistan to Reform Telecom Sector or Risk Falling Behind in Global Digital Race

Islamabad – July 14, 2025:
The Asian Development Bank (ADB) has sounded the alarm on Pakistan’s faltering digital progress, calling for urgent policy reforms to revive the country’s telecom and digital infrastructure. In a newly released report titled “Pakistan’s Digital Ecosystem,” ADB highlights excessive taxation, flawed spectrum pricing, and policy instability as major barriers to digital growth.

The report urges the government to rationalize taxes on digital infrastructure, fix spectrum pricing for at least 10 years, and remove dollar-based indexation to shield telecom operators from currency shocks. It also stresses that inefficient spectrum auctions and a lack of investor confidence could delay Pakistan’s 5G rollout.

ADB recommends provinces take the lead in driving digital services by subscribing to broadband for schools and hospitals, which would push network expansion into underserved areas. The report also calls for overhauling the Universal Service Fund (USF), supporting smartphone affordability, and encouraging local mobile manufacturing to reduce dependency on imports.

Crucially, ADB notes the absence of a unified industry voice in telecom policymaking and urges structured dialogue between the government and private sector to shape a more inclusive and competitive digital future.

“This is a make-or-break moment for Pakistan’s digital economy,” the report concludes, warning that without swift reforms, the country risks deepening the digital divide and missing out on global 5G opportunities.