By Farooq Awan

Pakistan's telecommunications sector generated revenues of Rs837 billion and contributed Rs285 billion to the national exchequer in FY2025-26, underscoring its growing importance as a key driver of digital transformation, investment and economic activity, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey highlights the telecom sector as one of the country's most dynamic industries, supporting digital connectivity, financial inclusion, technology adoption and the expansion of the digital economy.

According to the survey, total telecom subscriptions reached 207.2 million by March 2026, reflecting continued growth in mobile connectivity across the country. The expansion was accompanied by rising internet usage and increased demand for digital services by consumers, businesses and public institutions.

Broadband subscriptions climbed to 161 million during the fiscal year, while broadband penetration increased to 64.2%, demonstrating the rapid expansion of internet access throughout Pakistan.

The Ministry of Finance notes that improved digital connectivity is facilitating economic activity across multiple sectors, including information technology, e-commerce, digital banking, education, healthcare and public services.

The survey points out that the telecom sector remained a significant contributor to public finances during FY2025-26. Total contributions to the national exchequer reached Rs285 billion through taxes, fees, spectrum-related payments and other regulatory charges.

At the same time, telecom operators generated revenues of Rs837 billion, reflecting continued growth in voice, data and digital service consumption.

According to the survey, telecom companies invested approximately $567 million during the fiscal year to expand and upgrade network infrastructure. These investments were directed towards improving service quality, increasing network coverage and preparing for next-generation telecommunications services.

A major development during FY2025-26 was the successful 5G spectrum auction conducted by the Pakistan Telecommunication Authority in March 2026. The auction generated approximately $509.6 million through the allocation of 480 MHz spectrum across multiple frequency bands.

The survey notes that the introduction of 5G technology is expected to support advanced digital applications, improve network efficiency and enhance Pakistan's competitiveness in emerging technology sectors.

The telecommunications sector also continued to support the country's expanding digital economy. Pakistan's ICT export remittances increased to $3.38 billion during FY2025-26, while freelancer exports surged to $856.3 million.

The survey highlights the close relationship between digital infrastructure and the growth of technology-based exports. Improved connectivity has enabled software companies, freelancers, startups and digital entrepreneurs to access international markets and expand their operations.

According to the report, progress was also made in strengthening the country's digital infrastructure framework. Efforts continued under the National Fiberization Plan to improve broadband quality and expand high-speed internet access.

The government also pursued initiatives related to satellite communication services, emerging wireless technologies and cybersecurity frameworks aimed at strengthening digital resilience.

The survey notes that the Pakistan Telecommunication Authority retained its "G5 Regulator Advanced Level" status awarded by the International Telecommunication Union, reflecting continued progress in telecommunications regulation and governance.

Digital connectivity is also playing an increasingly important role in financial inclusion. Mobile banking, digital payment platforms and online financial services continued expanding during FY2025-26, enabling greater participation in the formal financial system.

The education and healthcare sectors similarly benefited from wider internet access, with growing use of online learning platforms, telemedicine services and digital content delivery systems.

According to the Ministry of Finance, telecommunications infrastructure has become a foundational component of modern economic development, supporting innovation, productivity and access to opportunities across sectors.

The survey notes that continued investment in connectivity, digital infrastructure and next-generation technologies remains essential for sustaining growth in the digital economy and enhancing Pakistan's technological capabilities.

With revenues reaching Rs837 billion, contributions to the exchequer amounting to Rs285 billion and broadband subscriptions rising to 161 million, the telecom sector further strengthened its role as one of the country's most important economic and technological growth engines during FY2025-26.

Credit: INP-WealthPk