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15 Information Technology

The document outlines the performance and initiatives of Pakistan's Information Technology and Telecommunication sector for FY 2025, highlighting IT exports of $2.825 billion and a trade surplus of $2.429 billion. It emphasizes the government's commitment to enhancing the digital economy through infrastructure development, skill training, and international cooperation, particularly with China. Key initiatives include the establishment of software technology parks, e-Rozgar centers for freelancers, and efforts to improve access to ICT services in underserved areas.

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0% found this document useful (0 votes)
17 views12 pages

15 Information Technology

The document outlines the performance and initiatives of Pakistan's Information Technology and Telecommunication sector for FY 2025, highlighting IT exports of $2.825 billion and a trade surplus of $2.429 billion. It emphasizes the government's commitment to enhancing the digital economy through infrastructure development, skill training, and international cooperation, particularly with China. Key initiatives include the establishment of software technology parks, e-Rozgar centers for freelancers, and efforts to improve access to ICT services in underserved areas.

Uploaded by

reson96808
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

IT Exports 2,825*

(US$ million)

Trade Surplus of IT
and ITeS
2,429*
(US$ million)

Freelancers’
Remittances
400 *
(US$ million)

Telecom
Revenues
803 *
(Rs billion)

Broadband
Subscribers
147.2**
(million)

Total Telecom
Subscribers 199.9**
(million)
Mobile and Fixed

* : July-March FY2025
** : End March 2025
Chapter 15

The Information Technology and for the envisioned "Innovation Corridor"


Telecommunication sector is a key enabler of between the two countries. It provides an ideal
inclusive and sustainable economic. It fosters forum to synergize efforts and drive
innovation, enhances productivity, expands advancements in cutting-edge domains such as
export market access, generates employment cybersecurity, Artificial Intelligence (AI), cloud
opportunities, particularly for women, and computing, the semiconductor industry, and
improves public service delivery. The most importantly, skill development.
government has prioritized the expansion of the
digital economy as a core component of its Information Technology Sector
national development agenda. This is evident in According to Kearney's 2023 Global Services
the inclusion of E-Pakistan as one of the five Location Index, Pakistan holds the World’s most
pillars of the URAAN Pakistan. To build a attractive position in IT outsourcing.
robust and sustainable knowledge-based techno- Furthermore, the International Labour
economy, the government is implementing a Organization (ILO) recognizes Pakistan as the
comprehensive strategy aimed at strengthening second-largest provider of digital labor,
IT infrastructure cybersecurity, developing specifically in software development and
human capital, fostering a startup and funding technology services. The country also ranks
ecosystem to drive innovation and among the top three suppliers for a broader range
entrepreneurship. The strategy also focuses on of digital labor, including clerical and data entry,
integrating artificial intelligence into key sectors creative and multimedia, professional, sales and
of the economy, like agriculture, health, and marketing support, software development and
governance, focusing on cutting-edge technology, and writing and translation services.
technologies like quantum computing.
Moreover, the government is committed to Major Tech hubs of Pakistan’s IT and IT-
making IT services more accessible and enabled Services (ITeS) industry are located in
affordable nationwide, especially in rural and Karachi, Lahore, and Islamabad/Rawalpindi.
underserved areas, to uplift the lower-income The IT industry in Pakistan derives the majority
households and improve the overall socio- of its earnings from international customers and
economic well-being in the country. ranks among the most forward-looking and
progressive sectors in the country, employing
To enhance cooperation in the field of IT, a Joint cutting-edge management, service, and product
Working Group on the IT industry (JWG-IT) has development techniques. Pakistani ICT
been established between China and Pakistan. companies demonstrate expertise ranging from
Both sides have agreed to cooperate in the areas high-end customized software development to
of ICT Infrastructure Development, ICT diverse Business Process Outsourcing (BPO)
Application Innovation, Cybersecurity, Policy services. Pakistan’s ICT industry caters to the
and Regulation, Radio Spectrum Regulation, world’s largest entities among its regular clients.
Human Resource Development and Technology Many international companies, including global
Business Forum. Building upon this strong enterprises such as Bentley®, Ciklum®, IBM®,
foundation, China and Pakistan are poised to Mentor Graphics®, S&P Global®, Symantec®,
elevate their IT cooperation to new heights over Teradata®, and VMware®, have established
the next year. JWG-IT serves as a vital engine consulting service centres, research and

261
Pakistan Economic Survey 2024-25

development facilities, and BPO support centres launch of the TechdestiNation Podcast by PSEB
in Pakistan. These investments generate high- to provide industry leaders a platform for sharing
paying jobs for talented youth, enhance inspiring stories and insights to drive IT sector
Pakistan’s positive image, and attract foreign growth. To boost IT exports, the Technology
direct investment (FDI). Export Marketing Programme was initiated to
develop tailored strategies for key markets,
Pakistan Software Export Board (PSEB): The including the UAE, the USA, and the UK, with
development of Pakistan’s ICT sector can be an overarching goal of annual exports reaching
gauged from more than 30,000 IT & ITeS US$ 15 billion.
companies registered with the Securities and
Exchange Commission of Pakistan (SECP), as ii. Infrastructure Development
of March 2025, comprising domestic and export-
PSEB manages over 50 STPs and e-Rozgar
oriented enterprises. ICT export of services have
centres providing state-of-the-art facilities to the
increased by US$ 541 million (23.7 percent) to
ICT Industry established under the project
US$ 2.825 billion (2,825 million) during FY
“Establishment of 25 Software Technology
2025 (July - March), compared to US$ 2.284
Parks” and “Prime Minister’s Initiative-Support
billion (2,284 million), for the same period last
to IT Startups, Specialized IT Trainings and
year.
Venture Capital”. These have been established
The IT & ITeS industry achieved a trade surplus in primary and secondary cities including
of US$ 2.429 billion, the highest among all Islamabad, Lahore, Karachi, Gilgit, Rahim Yar
services was realized by the ICT industry during Khan, Faisalabad, Swat, Quetta, Gujranwala,
FY 2025 (July - March), which is an increase of Sialkot, Abbottabad, Mansehra, Gujrat,
21.6 percent compared to the trade surplus of Jamshoro, Nawabshah, Gakuch, Bahawalpur
US$ 1.997 billion (1,997 million) during the and Khuzdar. Currently, these STPs working in
same last year. Meanwhile, the overall Services public private partnerships are providing 24/7
sector recorded a trade deficit of US$ 2.318 ICT facilitating to more than 350 companies
billion during the same timeframe. ICT sector across Pakistan with 4,600 IT professionals, out
exports of US$ 2.825 billion (2,825 million) of which 21 percent are females. To further
continue to be the highest among all Services support ICT Industry PSEB has undertaken an
(45.31 percent of total export of services), ambitious mission to establish 250 e-Rozgaar
followed by ‘Other Business Services’ at US$ centres across Pakistan up to FY 2027 under
1.229 billion (1,229 million). Pakistan-based PSDP project titled "Prime Minister's Initiatives
freelancers contributed foreign exchange - Support for IT Startups, Specialized IT
earnings to Pakistan’s economy through US$ Trainings and Venture Capital, Component-2"
400 million remittances during FY2025 (July- These centres are intended towards promoting
March). freelancers and entrepreneurship with a target of
20,000 job creations. There shall be 50
Activities undertaken to Enhance ICT e-Rozgaar centres operational during FY 2025.
Industry Exports during FY2025 (July-
March): iii. Human Resource and Skill Development

i. Marketing and Branding During FY 2025, significant strides were made


in building Pakistan’s IT human capital and
During the period FY2025 (July - March), PSEB industry capacity. A total of 6,400 professionals
subsidized the participation of 256 IT companies were trained in advanced technologies, with
in fifteen international events and two local certification ongoing for 3,400 more. Over 2,700
events, resulting in these efforts generating over interns were placed in IT firms, achieving a 70
US$ 48 million in business. Strategic marketing percent retention rate, while soft skills and
initiatives remained a core focus during this technical bootcamps trained thousands more.
period, with the reinforcement of the Industry-academia collaboration led to the
TechdestiNation Pakistan campaign to rebrand training of more than 1,600 graduates and the
the country as a leading IT hub, including the skill assessment of 9,300 students. Furthermore,

262
Information Technology and Telecommunication

15 IT/ITeS companies received support for competition, held over six hours and open to
international certifications for ISO27001, JAVA, C/C++/.Net, and Python programmers,
ISO27701, and 20 call centres to achieve aims to sharpen analytical thinking, encourage
ISO18295 certifications, enhancing global teamwork, and nurture computational creativity.
competitiveness and service quality.
Universal Service Fund (USF) Initiatives: The
IGNITE-National Technology Fund (NTF) USF, working under the Ministry of Information
Technology and Telecommunication, has
IGNITE-NTF is focused on funding and
continued its mission to bring
promoting technology innovation and
telecommunication services to the farthest and
entrepreneurship in Pakistan. For this purpose,
most underserved parts of Pakistan. The USF
IGNITE offers the following funding
focused on projects that support key national
programme:
goals and global commitments under the
a. Innovation and Entrepreneurship in ICTs Sustainable Development Goals (SDGs). The
initiatives helped expand affordable voice and
The government has a vision to accelerate high-speed internet services to remote
digitization and to transform Pakistan into a communities, improving lives and opportunities
knowledge-based economy, promoting for many. To ensure sustainability, all projects
economic growth through innovation and were powered primarily by solar energy. These
entrepreneurship. Over the past few years, the efforts ensure universal access to ICT services,
National Incubation Centres (NICs) have contributing to socio-economic development
incubated more than 1,900 startups, with more across the country.
than 960 graduating successfully. These startups
have generated over 185,000 jobs, received a USF programmes can be categorized into two
total investment of Rs 30.8 billion, and have broad categories:
combined revenue of more than Rs 27.3 billion.
To date, more than 12,000 women entrepreneurs a. Voice and High-speed Broadband Data
have been empowered through the programme. Services: The initiative’s aim is to bring modern
communication facilities to unserved and
b. [Link] 2.0 Training Programme for underserved village areas across the country.
Freelancing Through this programme, USF is helping
To date, the overall number of trainings that communities connect by building the necessary
[Link] has conducted is more than 4.55 infrastructure to provide voice and high-speed
million. The total trainees comprise 72 percent internet services. In addition to rural areas,
males and 28 percent females. The number of coverage is also being expanded to remote road
overseas Pakistanis trained in the programme is segments along National Highways and
more than 50,000. Furthermore, [Link] Motorways (NH&MW), as well as to key tourist
freelancers have earned US$ 1.65 billion till destinations, making travel safer and more
December 2024. connected.

c. Digital Pakistan Speed Programming b. Backhaul Services: This initiative focuses on


strengthening the digital backbone of the country
Competition 2025
by laying Optical Fiber Cable (OFC) to tehsil
In its ongoing commitment to foster technical headquarters, union councils, and major towns,
excellence and problem-solving acumen among the programme creates new connection points
the youth, Ignite, under the auspices of the that telecom companies can use to expand their
Ministry of IT & Telecom, launched the Digital services further, helping bridge the digital divide
Pakistan Speed Programming Competition and support future growth.
2025. This nationwide initiative targets students,
professionals, and startups, providing a dynamic The province-wise breakup of initiatives
platform to test programming skills in high- undertaken under different categories is
pressure, time-bound scenarios. The described in the following:

263
Pakistan Economic Survey 2024-25

a. Voice Broadband Data Services Projects been established, whereas an approximate


(3G/4G) subsidy of Rs 265.87 million has been disbursed
on the achievement of different project
i. Balochistan: During July-March FY 2025, the
milestones.
USF has successfully provided coverage to a
population of 108,367, residing in 125 mauzas iv. Punjab: During July-March FY 2025, 46 km
across the province, along with 84.17 km of of OFC has been deployed and 4 nodes have
unserved road segments on NH&MW M-8. An been established, whereas an approximate
approximate subsidy of Rs 2,562.8 million has subsidy of Rs 6.3 million has been disbursed on
been disbursed on the achievement of different the achievement of different project milestones.
project milestones.
National Telecommunication Corporation
ii. Khyber Pakhtunkhwa: During July-March (NTC)
FY 2025, the USF has successfully provided
coverage to a population of 24,647, residing in NTC has started planning for the establishment
33 mauzas across the province, along with 37.43 of high performance Cloud-based, AI-enabled
km of unserved road segments on NH&MW N- Data Centre at Karachi with a cost of Rs 786.4
35. An approximate subsidy of Rs 625.24 million, which will not only serve the data centre
million has been disbursed on achieving requirements of the South Region, but will also
different project milestones. facilitate digitization of the country, which will
increase transparency, Government efficiency,
iii. Sindh: During July-March FY 2025, the USF and effective service delivery to the public.
has successfully provided coverage to a NTC's Annual Development Plan (ADP)
population of 141,632, residing in 139 mauzas consists of 14 Development projects, amounting
across the province. An approximate subsidy of to Rs 980 million, which were planned besides
Rs 1,744.12 million has been disbursed on the completion of 80 Small Development Works
achievement of different project milestones. amounting to Rs 62.9 million, from NTC’s
funding in FY 2024. The outcome of ADP
iv. Punjab: During July-March FY 2025, the projects will increase the ICT footprint or
USF has successfully provided coverage to a capacity by approximately 10,153 telephone,
population of 250,805, residing in 127 mauzas 3,776 DSL, and 51 CIR connections, and
across the province. An approximate subsidy of provide cloud-based data services through data
Rs 250.5 million has been disbursed on centres in Islamabad, Lahore, and Karachi.
achieving of different project milestones. During FY 2025 (July-December), NTC earned
a profit of Rs 196.78 million, before tax.
b. Backhauls Projects
Major Initiatives of NTC
i. Balochistan: During July-March FY 2025,
132 km of OFC has been deployed, 10 nodes i. Public Private Partnership Initiatives: NTC
have been established, and backhaul is seeking local and foreign investment in several
connectivity to 4x BTS sites has been provided. projects, including the establishment of
An approximate subsidy of Rs 726.01 million Internet/Cloud Exchange Points at Karachi,
has been disbursed on the achievement of deployment of DWDM Core Transmission
different project milestones. Equipment and Optical Fiber Cable Network,
deployment of Submarine Cable between
ii. Khyber Pakhtunkhwa: During July-March Karachi & Gwadar, and transformation to
FY 2025, 577 km of OFC has been deployed and FTTH.
76 nodes have been established, whereas an
approximate subsidy of Rs 1,050.08 million has ii. Establishment of Data NTC Centre at
been disbursed on the achievement of different Karachi: NTC’s new Data Centre will improve
project milestones. the overall efficiency and performance of NTC
Data Centre infrastructure, through the addition
iii. Sindh: During July-March FY 2025, 366 km of a dedicated site for latency-conscious service
of OFC has been deployed and 26 nodes have in the south region, besides an addition of GPU,

264
Information Technology and Telecommunication

AI, and Micro services from the new platform. services and customer satisfaction.
This facility will support NTC's future growth
and expansion plans, as well as meet the growing vii. Call Centre Services: NTC has established
demand for data centre services in the a cloud-based multitenant call centre platform
government sector. for centralized complaint management and
services to other Government departments. This
iii. Revamping of NTC Cloud at Islamabad & solution, deployed at NTC National Data Centre
Lahore: NTC's cloud and virtualization (NDC) Islamabad and Disaster Recovery Centre
services, crucial for government digitization (DRC) Lahore, aligns with the Digital Pakistan
across Pakistan and currently offering IaaS, are Vision by providing accessible communication
slated for a significant upgrade. This revamping channels. These services enhance citizen
initiative will introduce modern service flavors, engagement, streamline information, and
such as micro services and bolster automation improve public service delivery, fostering
capabilities. Furthermore, the enhanced platform transparency and trust. NTC's Call Centre
will incorporate additional robust object and file supports its own helpline and various
storage solutions. The revamped services will government departments.
adhere to stringent security and compliance
The Electronic Certification Accreditation
standards designed specifically for the public
Council (ECAC) has several important aims to
sector.
create a secure digital environment. A primary
iv. Establishment of Cyber Security initiative is the establishment of a legal
Department at NTC HQ Islamabad: A Cyber framework to recognize and facilitate electronic
Security Department is critical to protect data transactions, enabling the use of digital
and infrastructure from cyber threats like signatures with the same legal standing as
ransomware and data breaches. It enables handwritten signatures. ECAC is mandated to
proactive risk management, compliance with grant accreditation to Certificate Service
regulatory standards, and real-time threat Providers (CSPs), ensuring that electronic
mitigation. This initiative builds public trust by services maintain security, integrity, and
prioritizing security and aligning with national authenticity. This accreditation process
strategies. Investing in this department ensures contributes to making electronic transactions
long-term operational resilience. more secure and reliable.

v. APN Service: NTC, partnering with Cellular Public Key Infrastructure (PKI) for the National
Mobile Operators (CMOs), launched the APN Root Certification Authority is crucial for the
service, providing 4G-based Intranet access for effective implementation and management of
the Government of Pakistan, which promotes electronic transactions. ECAC also focuses on
efficient and digitally-driven governance. Its monitoring compliance of Accredited Certificate
significant growth highlights its effectiveness Service Providers (ACSPs) and managing the
and widespread adoption across government repository for certificates. The council plays an
departments. advisory role, guiding regulators and authorities
on using digital identity for secure electronic
vi. Network Architecture Enhancement Plan:
transactions. ECAC's commitment to security
NTC is enhancing its network with a robust and
and trustworthiness is further demonstrated by
redundant core infrastructure, implementing 3 x
its completion of the 2ndWebTrust Audit and the
NGN core routers in a 1+1 high availability
acquisition of renewed WebTrust seals. These
configuration. This design ensures 24/7 service
initiatives collectively underscore ECAC's
availability and minimizes service outages. This
efforts to establish trust, security, and legal
upgrade will enhance reliability, improve
validity in Pakistan's digital transactions,
performance, increase capacity, and simplify
management. NTC's investment demonstrates its aligning with national regulations and
commitment to high-quality, secure network international best practices.

265
Pakistan Economic Survey 2024-25

Special Communication Organization (SCO) implemented progressive regulatory frameworks


is an entity that executed various that optimize digital infrastructure, stimulate
telecommunication projects, including the investment, promote cyber security, and enhance
extension of GPON-III FTTH services in Azad service delivery. Our initiatives aim to foster
Jammu & Kashmir (AJ&K) and Gilgit Baltistan technological advancements, adopt online safety
(GB), which added 15,000 subscribers and measures, safeguard consumer rights, and
covered major areas of Muzafarabad, Mirpur, encourage fair competition.
and Gilgit. Furthermore, GPON-IV FTTH
services were extended to two locations in PTA achieved remarkable progress vis-à-vis the
AJ&K and nine locations in GB to provide high- nationwide expansion of telecom coverage,
speed internet for tourism, education, and improving accessibility and connectivity for
freelancers, and have created 300 direct and millions. Cellular mobile services now reach 91
indirect job opportunities during FY 2025 (July percent of Pakistan’s population, with 3G/4G
- April). signals reaching over 81 percent. By December
2024, there were 57,063 operational cell sites,
Telecommunication Sector 96.2 percent supporting 4G. These efforts drove
Pakistan Telecommunication Authority (PTA) a surge in the number of broadband subscribers,
has been at the helm of driving innovation to which reached 147.2 million by March 2025.
create a vibrant telecom sector. Despite Broadband penetration increased to 59.8percent,
economic challenges, the past year has been up from 32.6 percent in 2019. Telecom revenues
marked by significant advancements in meeting reached Rs 803 billion in FY 2025 (July-March).
increasing consumer demands for connectivity Investments in the sector totaled US$ 621
and reliability. Prioritizing affordable, high- million and contributed a substantial Rs 271
quality telecom services for all, PTA has billion to the national exchequer in terms of
taxes and duties during FY 2025 (July-March).

Table 15.1: Telecom Industry Financials


2020-21 2021-22 2022-23 2023-24 2024-25
(R) (R) (R) (R) (Jul-Mar) P
Telecom Revenues (Rs billion) 641 717 817 955 803
Telecom Contribution (Rs billion) 222 329 341 335 271
Telecom Investment (US$ million) 1,214 1,657 770 765 621
P : Provisional, R : Revised.
Source: Pakistan Telecommunication Authority

Regulatory Activities b. Improved Ranking in Global


Cybersecurity Index
a. Enablement of Next-Generation Wi-Fi
In September 2024, Pakistan achieved the Tier-
PTA took significant strides in enhancing
1 (Role Modeling) rating and is now among the
wireless connectivity by unlocking the 6 GHz top 40 countries in the Global Cybersecurity
spectrum band (5,925-6,425 MHz) for Index 2024, issued by ITU, marking a notable
unlicensed use, enabling faster speeds, lower improvement from its previous 79th position.
latency, and improved network reliability. With This advancement reflects Pakistan’s dedication
this step, Pakistan has become the 10th country to strengthening cybersecurity nationwide,
in Asia to adopt next-generation Wi-Fi particularly in the IT and telecom sectors. PTA,
technology. PTA is proactively collaborating MoITT, and other stakeholders have been key
with industry stakeholders for the proliferation drivers in this success. Major initiatives that
of Wi-Fi 6E and beyond. have enhanced cybersecurity include the

266
Information Technology and Telecommunication

Cybersecurity Policy, CERT Rules, CTDISR, SECP, seamless online payments integrated with
Cybersecurity Strategy and regular the National Bank of Pakistan (NBP), and a
cybersecurity audits across the telecom sector. simplified application process. The platform
The establishment of National Telecom CERT enables users to complete the entire process
has further enhanced the country’s security online, benefiting from secure steps like
framework through information sharing, biometric verification at NADRA e-Sahulat
incident management, and rapid response outlets and automated fee payment
coordination. Together with local telecom confirmations, making the process faster and
operators adhering to international cybersecurity more efficient.
standards, these efforts have strengthened
Through a collaboration between PTA,
Pakistan’s defense against cyber threats.
NADRA, SECP, and NBP, this strategic
c. National Roaming initiative is expected to revolutionize the
licensing process for telecom services
PTA launched national roaming services along
nationwide. By integrating these critical
the Makran Coastal Highway through a
systems, PTA is fostering a more robust telecom
collaborative effort involving MoITT, Universal
infrastructure, thereby supporting the growth of
Service Fund (USF), Jazz, and Ufone. National
Pakistan’s digital economy.
roaming enables subscribers to access services
from any available network in areas where their e. Readiness for 5G
primary service provider lacks coverage,
The telecom sector is rapidly advancing towards
eliminating connectivity black-spots. The
5G launch. PTA initiated the process aiming at a
facility improves user connectivity and increases
mid-2025 rollout. Substantial infrastructure
the coverage footprint of operators through the
upgrades are underway to support 5G rollout,
efficient use of existing infrastructure, without
with PTA developing regulatory frameworks to
the need for additional capital expenditure in
attract investment and simplify operations. In
active and passive networks. The service is not
parallel, telecom operators are upgrading
just a technological upgrade but a key step in
systems, expanding fiber optic networks for
improving public safety and access to essential
high-capacity backhaul, and conducting trials for
services. The expanded network will also
smooth transition. PTA has allocated suitable
enhance coordination for emergency services
backhaul frequency spectrum (E-band) to
and assure travelers of reliable communication
Cellular Mobile Operators (CMOs) to assess
in case of any unexpected situations. The
backhaul readiness for 5G’s high data rate and
launching of mobile roaming services along the
low latency requirements. To improve next-
Coastal Highway is just the beginning. PTA is
generation mobile broadband services, the
committed to further expanding connectivity
government formed an advisory committee to
across Balochistan and other remote regions so
oversee the release of International Mobile
that all Pakistanis have equal access to reliable
Telecommunication spectrum. The Frequency
mobile communication services.
Allocation Board (FAB) approved spectrum for
d. Ease of Doing Business future auctions, and PTA hired an international
consultant to provide expert recommendations
PTA launched Online Application Submission
on the auction process and 5G implementation
and Information System (OASIS), a cutting-
model. The advisory committee will review
edge platform that streamlines the licensing
these recommendations to steer Pakistan into the
process for telecom companies and applicants,
5G era.
significantly enhancing the ease of doing
business. OASIS provides a comprehensive f. Global Recognition for Child Online
solution, enabling applicants to navigate the Protection Initiatives
entire application process easily and efficiently.
In 2024, ITU recognized PTA’s exemplary
Its key features include automated CNIC
performance in the domain of Child Online
verification through NADRA, real-time
Protection (COP) by appointing it to the
company registration verification checks by the
prestigious ITU Council Working Group on

267
Pakistan Economic Survey 2024-25

Child Online Protection (CWG-COP). the development of a National Fiberization Plan


Furthermore, PTA solidified its leadership by to boost OFC footprint and Fiber-To-The-Site
winning the LEAD Award for two consecutive (FTTS) penetration across the country. The plan
years—it was honored in 2023 for ‘Ensuring is expected to facilitate private networks,
Child and Youth Safety Online’ and in 2024 for including long-haul and networks, as well as
‘Enabling Digital Safety of Children.’ These FTTS deployment, in a timely and cost- effective
accolades demonstrate PTA’s commitment to manner. The World Bank is collaborating with
protecting children and youth in the digital MoIT and PTA to conduct the feasibility study
landscape. for the National Fiberization Plan, which will be
financed through the Digital Economy
g. Licensing for Satellite Communication
Enhancement Project.
Services
j. Online Safeguards
The National Space Policy was approved by the
Cabinet in December 2023, shaping the future of PTA, under the Prevention of Electronic Crimes
space activities and regulations in Pakistan. In Act, actively handles complaints from public
line with this policy, the development and government organizations concerning
framework for licensing Satellite unlawful online content. To date, 1.43 million
Communication Services is underway. URLs linked to unlawful activities have been
Moreover, the framework is designed to processed for blocking.
facilitate the entry of Satellite Broadband
k. Quality of Service Surveys
players, particularly Next-Generation Satellite
Orbits (NGSO) providers, into the market, PTA conducts nationwide, independent QoS
fostering competition, expanding connectivity surveys to assess the performance of CMOs
options, and driving advancements in satellite against licensed KPIs for voice, data, and SMS
technology to meet the growing demands of services, and to assess the network performance
modern communication networks. of fixed broadband service providers. During FY
2024, PTA surveyed 83 cities for CMOs’
h. Digital Gender Inclusion Strategy
assessment, conducting an average of 5,000
In collaboration with MoITT, PTA successfully voice and 5,000 SMS tests per quarter, along
launched Pakistan’s first-ever Digital Gender with 10,000 auto-mode and 10,000 third-party
Inclusion Strategy and its implementation at the data sessions, covering around 3,200 km each
Digital Nation Summit. The strategy addresses quarter. Approximately 400,000 tests were
the barriers hindering women’s access to mobile resultantly measured over the year, ensuring
and ICT services and sets forth an accelerated compliance with defined baselines and
action plan with an implementation roadmap, benchmarks. For fixed broadband services, PTA
timelines, and measurable outcomes. The completed QoS surveys across 36 major cities
development of this strategy by Pakistan during January to June 2024, assessing essential
KPIs including network availability and latency
represents a targeted approach to addressing
to ensure the delivery of high-quality internet
gender disparities in ICTs. Its unique,
services to users.
methodical framework has earned widespread
recognition on international platforms as one of Telecom Development
the first of its kind. The strategy has been a. Broadband Proliferation
appreciated as an exemplary model, fit for Both the government and PTA recognize the
replication by other developing countries. importance of broadband connectivity in
fostering economic development and digital
i. National Fiberization Plan
inclusion. Broadband expansion is at the heart of
A key component of the telecom infrastructure, the ‘Digital Pakistan’ vision, aimed at
Optical Fiber Cable (OFC), is essential for modernizing various sectors of the economy and
closing the digital divide and supporting 5G providing digital services to the entire
networks. With the rise in demand for OFC to population. Given Pakistan’s relatively low GDP
connect base stations, the government initiated growth in recent years, the productivity gains

268
Information Technology and Telecommunication

stemming from digital connectivity have These actions have stimulated the expansion and
become indispensable for sustained economic adoption of 4G services. Over the past years, the
growth. telecommunications sector has experienced
remarkable growth in broadband subscriptions,
Ever since the launch of 3G and 4G services in
encompassing both mobile and fixed services.
2014, the broadband landscape in Pakistan has
Broadband subscriptions surged an impressive
undergone a significant transformation. PTA has
151 percent, increasing from 58.7 million in FY
played a vital role in initiating strategic
2018 to an outstanding 147.2 million as of March
initiatives such as spectrum auctions, renewals
2025. These statistics emphasize the growing
(spanning from 2016 to 2021), spectrum
significance of broadband services in Pakistan’s
reframing, and additional rollout obligations.
digitally connected society.

Fig-15.1: Broadband Subscribers & Penetration Fig-15.2: Data Usage (Peta Byte)
59.8%
57.0% 30,000 27,897
160 53.6% 60% Mobile
51.0% Fixed
25,141
140 147.2 25,000 Total
44.9% 50%
138.3
20,235
120 127.6 13,574
37.4% 118.8 20,000
40% 16,250 12,120
100
102.7 12,572
15,000 9,385
80 30%
Million

83.8 7,280
60 10,000 5,717
20%
14,322
40 13,021
5,000 10,850
8,970
10% 6,855
20
-
0 0% 2020-21 2021-22 2022-23 2023-24 2024-25(E)
2019-20 2020-21 2021-22 2022-23 2023-24 Mar-25
Source: PTA
Source: PTA Broadband BB Penetration (%)
.… Note: 2024-25 Figures are estimated

Data usage in the telecom sector has seen a b. Telecom Subscribers and Teledensity
significant surge. The combined data
At the end of March 2025, the total telecom
consumption from mobile and fixed broadband
subscriptions (Mobile and Fixed) reached
services in FY 2025 amounted to a substantial
199.99 million, and total teledensity in the
27,897 petabytes (estimated), emphasizing the
country reached 81.3 percent. The cellular
pivotal role of broadband in Pakistan’s digitally
mobile segment was the primary contributor
connected society and the need for infrastructure
towards overall growth in subscribers and
expansion.
teledensity.

Fig-15.3: Teledensity (Percentage) Fig-15.4: Telecom Subscribers


(Mobile and Fixed)

90% 197.2 193.5 195.1


199.99
186.8
84.6%
200
171.1 2.5
81.7% 81.4% 2.6 2.6 2.6
1.1% 81.3% 2.6
80.5%
1.1% 2.5
80% 1.1%
1.1%
1.0% 150
Million
Percentage

100 194.6 190.9 192.5 197.5


83.5%
70% 80.6% 80.3% 79.4% 80.3%

184.2
50 168.6

60%
2020-21 2021-22 2022-23 2023-24 Mar-25 0
2019-20 2020-21 2021-22 2022-23 2023-24 Mar-25

Source: PTA Fixed Mobile Total


.… Source: PTA Mobile Fixed Total

269
Pakistan Economic Survey 2024-25

c. Cellular Cell Sites Network International e. Affordable Broadband Services


Connectivity
One of PTA’s strategic objectives is to provide
The growing demand for broadband expansion affordable, high-quality services while ensuring
and upgradation of technology, particularly with that investors and operators receive a reasonable
the launch of 3G and 4G networks, has been return on their investments. Thanks to proactive
pivotal in shaping Pakistan’s telecom landscape. regulatory practices and a competitive
At the end of December 2024, a total number of broadband market, Pakistan offers some of the
cell sites reached 57,063. CMOs have deployed world’s lowest and most budget-friendly
8,972 cell sites from June 2021 to December telecom prices to its citizens. The cost of 1 GB
2024. Apart from cell site additions, they have of data in Pakistan is a mere US$ 0.10, making
made multi-billion-dollar investments in it the lowest in the region and sixth lowest in the
upgrading existing 2G sites to 4G. Currently, world. An analysis of the effective price of 1GB
96.2 percent of cell sites are 4G-enabled, with data over the years reveals a consistently
more upgrades coming up. declining trend, with data costs per GB
registering a 65 percent decline since FY 2018,
Table 15.2: Cellular Mobile Cell Sites decreasing from Rs 77.1 per GB to Rs 27.0 per
Year Cell Sites 4G% GB during FY 2025 (July-December).
2020-21 48,091 84.7%
2021-22 51,768 92.3%
Fig-15.6: Effective Price (Revenue)
2022-23 53,581 94.0% Per GB Per Month (Rs)
2023-24 55,777 95.5% 77.1
Dec-24 57,063 96.2%
Source: PTA 60.3

d. Mobile Average Revenue Per User (ARPU) 37.3


29.6
Pakistan’s Competitive telecom environment 26.9 26.6 27
25.5

and its reputation for offering some of the most


affordable rates in the region. The country
traditionally maintained a relatively low ARPU,
compared to its neighbors. However, recent

(Jul-Dec)
FY-18

FY-19

FY-20

FY-21

FY-22

FY-23

FY-24

FY-25
developments such as the expansion of Source: PTA
broadband services, flexible pricing regulations
for telecom operators amidst rising inflation, and f. Telecom Device Manufacturing
a decline in the multi-SIM phenomenon have led
to a noteworthy increase in ARPU. In Dec-2024 PTA has provided a level playing field for
ARPU reached Rs 313 per month. foreign investments in the mobile device
manufacturing industry in Pakistan. PTA
introduced the Mobile Device Manufacturing
Fig-15.5: Mobile ARPU (Rs billion)
(MDM) Regulations in 2021, leading to the
350
313 establishment of local manufacturing plants by
300 276 36 local and foreign companies. These
229
companies, both stand-alone and joint ventures,
secured a 10-year MDM authorization for the
250
209 207 212
200 purpose. From January 2019 to March 2025,
150 Pakistan manufactured a whopping 131.26
million mobile handsets (including 51.07 million
100
smartphones), creating numerous job
50 opportunities. Accordingly, an uptake of
0
smartphones to 67 percent of devices on the
2019-20 2020-21 2021-22 2022-23 2023-24 Dec-24 network can be seen in the table.
Source: PTA

270
Information Technology and Telecommunication

Table 15.3: Uptake of 3G/4G Devices services lays the foundation for a resilient,
(Percentage of IMEIs on Mobile Networks) globally competitive, and export-oriented IT
2019 56% 44% ecosystem. With a substantial young
2020 52% 48% demographic and tech-savvy and professional
2021 48% 52% talent base, Pakistan is set to become a regional
2022 54% 55% hub for digital services, tech entrepreneurship,
2023 43% 57% and high-value software exports. Continued
2024 35% 65% focus on skill development, investment
2025 (Mar) 33% 67% facilitation, and international collaboration will
Source: PTA be instrumental to unlocking new opportunities
for growth, job creation, and inclusive socio-
Concluding Remarks economic progress. As Pakistan transitions to a
The government's commitment to fostering knowledge-based, techno-economy, the IT and
innovation, expanding digital infrastructure, and telecommunication sector will remain the
ensuring inclusive access to digital tools and leading driver of this transformation.

271

Common questions

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PTA's regulatory authority has driven significant telecom sector growth through strategic initiatives such as spectrum auctions and the introduction of next-generation Wi-Fi. These actions stimulated the widespread adoption of 4G services, leading to a significant increase in broadband subscriptions, reaching 147.2 million, and penetration growth to 59.8% by March 2025. PTA's initiatives also improved service reliability and affordability, making Pakistan's telecom services some of the most cost-effective globally .

The decision to unlock the 6 GHz spectrum for wireless connectivity portends significant economic implications by enabling faster and more reliable internet services, fostering technological advancement, and increasing competitiveness in the telecom sector. The availability of broader spectrum allows for higher data capacity and speed, critical for supporting future technologies such as 5G. Additionally, it stimulates further investments and innovation in the telecommunications industry, potentially boosting the economic activities dependent on robust ICT infrastructure .

Between FY 2018 and March 2025, Pakistan's broadband subscriber base evolved dramatically, with a 151% increase from 58.7 million to 147.2 million. This impressive growth underscores the rising importance of digital connectivity in Pakistani society, propelled by initiatives in expanding 4G/5G services, competitive regulatory frameworks, and investments in internet infrastructure .

The deployment of Optical Fiber Cable (OFC) under the Backhauls Projects is crucial for strengthening the digital backbone of Pakistan. By providing new connection points at tehsil headquarters and major towns, telecom companies can expand services more effectively, bridging the digital divide and supporting future growth. This infrastructure is vital for providing stable and high-speed connectivity, which is foundational for both current demands and future enhancements in telecom services across the country .

Maintaining low-cost telecom services amidst rising inflation presents challenges such as balancing the cost of expanding digital infrastructure and ensuring profitability for service providers. Inflation pressures may lead to increased operational costs and investments in technology upgrades, potentially straining the affordability of services. The PTA will need to navigate these challenges through innovative pricing strategies and investments in cost-effective technologies to uphold affordability without compromising service quality .

ECAC's management of Public Key Infrastructure (PKI) enhances digital security by ensuring secure, trustworthy electronic transactions through the accreditation of Certificate Service Providers (CSPs). This legal framework gives digital signatures the same standing as handwritten ones, thereby making electronic transactions more reliable and fostering trust among users. The initiative aligns with national regulations and international best practices, underscoring ECAC's commitment to the security and authenticity of electronic services .

The competition fosters technical excellence and problem-solving acumen among the youth by providing a platform where students, professionals, and startups can test their programming skills under pressure. It aims to sharpen analytical thinking, encourage teamwork, and nurture computational creativity, which are valuable skills in both educational and professional environments across Pakistan .

The establishment of NTC's high-performance Cloud-based, AI-enabled data center in Karachi will significantly enhance digital infrastructure by providing advanced data services and improving efficiency in the South Region. It supports government digitization, enhancing transparency, government efficiency, and effective public service delivery. The modernization and expansion of cloud capabilities, including micro services and secure storage solutions, contribute to a more robust infrastructure supporting the public sector's evolving needs .

The USF has significantly enhanced telecommunications access in underserved areas by implementing initiatives that bring modern communication facilities to remote regions of Pakistan. By powering projects primarily through solar energy, the USF expanded affordable voice and high-speed internet services, thus contributing to socio-economic development. These efforts include providing 3G/4G coverage to numerous mauzas and unserved road segments across different provinces in Pakistan, supporting national goals and the Sustainable Development Goals (SDGs).

The decline in the effective price of data per GB from Rs 77.1 in FY 2018 to Rs 27.0 by FY 2025 has significantly enhanced consumer accessibility to broadband services. This reduction, attributable to proactive regulatory measures and a competitive market, resulted in making internet services affordable for a larger segment of the population, thereby increasing digital outreach and supporting economic growth through broader participation in the digital economy .

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