Pakistan’s dream of becoming a leading digital hub and achieving $25 billion in IT and digital service exports within the next five years is under severe threat as delays in the spectrum auction continue to stall the rollout of 5G technology. Experts, industry leaders, and international stakeholders are warning that the country risks losing billions of dollars in potential growth, jobs and investment unless urgent measures are taken.
Julian Gorman, Head of Asia-Pacific for the Global System for Mobile Association (GSMA), cautioned that Pakistan’s digital vision cannot materialise without timely and transparent spectrum auctions. Speaking at a policy dialogue in Islamabad, he warned: “If the auction is delayed by another two years, the cost to the economy could exceed $1.8 billion. Delays not only reduce investor confidence but also push Pakistan further behind in the global race for digital transformation.”
Pakistan’s IT sector currently contributes significantly to foreign exchange earnings, but without 5G, scaling exports to $25 billion by 2030 will be impossible.
The last spectrum auction was conducted in 2021, nearly four years ago, but a large portion of the spectrum remained unsold. Experts say this sent negative signals to international investors, raising doubts about Pakistan’s regulatory clarity and policy direction. Industry leaders argue that without reasonable pricing and flexible payment plans, including instalment options, telecom operators cannot afford to invest in spectrum and the necessary infrastructure. Instead of fuelling growth, high spectrum costs have become a financial burden. This has discouraged long-term investment in expanding networks and improving service quality.
Adding to the economic challenges are legal disputes that have dragged on for decades. The most prominent example is the SNL case, which dates back to the 1990s. Through repeated use of stay orders, SNL has continued unauthorised spectrum use for years without resolution. This is also showing the past government’s lack of political will in pursuing the case rigorously, despite clear evidence of unauthorised spectrum use. Failure of regulatory bodies to enforce compliance, allowing elite interests to override the public good.
In 2024, the Sindh High Court once again extended fresh stay orders in the case, prolonging the uncertainty and further delaying the spectrum auction. Such disputes undermine investor confidence and expose serious weaknesses in Pakistan’s regulatory and judicial frameworks. Industry expert remarked that this case alone has held back fair competition and timely access to spectrum for decades, and it is a symbol of “elite impunity” where powerful entities exploit loopholes and judicial delays to their advantage.
The consequences of these delays extend well beyond telecom operators. 5G is not just faster internet, it is the backbone of artificial intelligence, cloud computing, smart manufacturing, telemedicine and e-governance. Countries adopting 5G are creating new industries and jobs, while Pakistan risks being left behind. With one of the world’s youngest populations, Pakistan could leverage 5G to empower youth with opportunities in entrepreneurship, freelancing and digital innovation. Instead, every year of delay erodes competitiveness, limits digital exports and diminishes the trust of global investors.
Julian Gorman, Head of Asia Pacific of Global Systems for Mobile Communications, said that Pakistan’s ambitions, such as building a cashless economy, promoting instant digital payments and boosting IT exports, are simply not possible without reliable, high-quality connectivity. You cannot build a digital economy on weak infrastructure.
Officials from the Ministry of IT and Telecom maintain that the government is committed to its digital agenda and is working to resolve the spectrum issue. Telecom operators are demanding not only affordable spectrum prices but also a clear roadmap for spectrum availability. Without this, they argue, it is impossible to plan future investments or meet the growing demand for high-speed connectivity.
Across Asia and beyond, countries are accelerating their 5G rollouts and reaping the benefits in productivity, innovation and exports. Pakistan’s delay, on the other hand, risks pushing it further behind regional competitors like India, Bangladesh and Vietnam, all of which are moving faster to integrate next-generation technologies. The stakes are high: Pakistan’s IT sector currently contributes significantly to foreign exchange earnings, but without 5G, scaling exports to $25 billion by 2030 will be impossible. The opportunity cost is not just measured in lost revenues but in lost innovation, jobs and investor trust.
In September 2025, Prime Minister Shehbaz Sharif approved Pakistan’s long-delayed 5G spectrum auction, set for completion by December 2025 after years of setbacks from telecom mergers, litigation and economic challenges. The plan was shared in a Senate briefing with the Auction Advisory Committee led by the Finance Minister, scheduled to review international consultant proposals in September 2025. A total of 606 MHz of spectrum will be offered, though 154 MHz remains under litigation. Yet Pakistan stands at a critical crossroads: 5G could transform Pakistan into a regional digital leader by creating industries, jobs and innovation for its youth. Progress depends on resolving legacy disputes like the SNL case, rationalising spectrum pricing with flexible payment options and ensuring transparent, timely auctions to rebuild investor confidence. Without these steps, Pakistan risks losing billions in exports and investment, along with its chance at a competitive digital future.
The writer is a freelance columnist.