Pakistan’s federal government is preparing to establish a working group to review taxation policies affecting the telecom sector, as industry stakeholders continue to raise concerns over investment sustainability. The move signals a renewed effort to align fiscal measures with long-term digital growth objectives.
Telecom operators and infrastructure providers have repeatedly warned that high taxes, combined with rising energy costs and currency volatility, are limiting their ability to expand networks and invest in next-generation technologies. Despite strong demand for data services, margins have tightened, particularly for companies operating in rural and underserved regions.
The proposed working group will include representatives from telecom infrastructure firms, venture capital investors, and relevant government departments. Its mandate will be to assess existing tax structures, identify bottlenecks, and recommend reforms that balance revenue generation with sector viability.
Analysts say a clearer and more predictable tax framework could unlock fresh investment in broadband expansion and 5G readiness. Pakistan’s telecom sector remains a critical pillar of the digital economy, supporting e-commerce, fintech, and remote services nationwide.
Policy recommendations from the group are expected to feed into future budget discussions and broader digital strategy planning.
Read more on telecom policy here.
