GSMA Highlights Urgent Reforms to Unlock Pakistan’s Digital Potential at Digital Nation Summit 2025

Islamabad, 7 August 2025 – The second edition of the Digital Nation Summit Islamabad, hosted by the GSMA, brought together national and international stakeholders to spotlight the urgent need for reform in Pakistan’s digital landscape. Recognizing the collaborative efforts of the Ministry of Information Technology and Telecommunication (MoITT), Pakistan Telecommunication Authority (PTA), and the country’s mobile network operators, the summit centered around Pakistan’s opportunities to close its significant mobile internet usage gap and unlock digital growth.

The GSMA launched its latest report titled “Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity” during the event. The report outlines strategic recommendations to help Pakistan overcome regulatory and economic hurdles that are currently preventing widespread adoption of mobile internet, despite extensive broadband coverage and growing smartphone penetration.

Julian Gorman, GSMA’s Head of Asia Pacific, emphasized the transformative role that mobile connectivity plays in Asia’s economic future. He noted that while mobile broadband covers 81 percent of Pakistan’s population and 68 percent own smartphones, only 29 percent actually use mobile internet. This results in a 52 percent usage gap, the largest among major regional markets, indicating significant room for improvement in accessibility and trust.

Gorman highlighted that high spectrum prices, sector-specific taxes, and regulatory uncertainty are limiting the investment needed to improve infrastructure and expand affordable, high-quality connectivity. He warned that without reform, Pakistan risks falling behind its regional peers in the digital economy. The report identifies opportunities to expand mobile spectrum access, lower the cost of spectrum, and enable spectrum sharing, all of which are vital for 5G readiness and efficient network operation.

Additionally, the report draws attention to Pakistan’s burdensome mobile sector taxation, which reaches up to 33 percent in combined charges. These high costs increase consumer prices and hinder demand. The GSMA recommends aligning fiscal policy with digital development goals by rationalizing device and service taxes and introducing incentives such as tax credits for research and infrastructure investment.

The report further stresses the importance of building trust and inclusion through robust anti-fraud measures and digital literacy programs. Pakistan’s participation in the GSMA APAC Cross-Sector Anti-Scam Taskforce is seen as a positive step, but further expansion is needed. Initiatives focused on women and rural communities can play a key role in closing the digital usage gap.

Federal Minister for IT and Telecom, Shaza Fatima Khawaja, spoke on Pakistan’s progress in building a digitally inclusive future. She noted that Pakistan is not merely adapting to the digital age but actively shaping it with purpose. Under Prime Minister Shehbaz Sharif’s vision, the Ministry has achieved several milestones, including the launch of AI-powered data centers, operationalization of 40 Software Technology Parks, new submarine cable deployments, and the rollout of 17 telecom projects delivering 1,825 km of optic fiber to over 500 underserved areas.

Pakistan’s digital momentum is also reflected in its 14 percent improvement in the ITU ICT Development Index, over 200 million telecom subscribers, and a 24 percent increase in internet usage. Women’s mobile internet adoption, which rose from 33 percent to 45 percent in 2024, marks the largest gain among surveyed countries, signaling the impact of targeted policy interventions.

To further enable Pakistan’s digital acceleration, the GSMA calls for a more predictable regulatory environment that supports innovation and network resilience. Embracing forward-looking frameworks such as “Always-On Network” solutions and technology-neutral policies will foster a competitive and sustainable telecom ecosystem.

Julian Gorman concluded that with the right policy environment, Pakistan could lead regional innovation in developer services, IT outsourcing, and digital commerce. The GSMA’s new report provides a roadmap to realize this vision, and the time to act is now.