Pakistan imposes region’s heaviest taxes on telecom industry: ADB

F.P. Report

ISLAMABAD: The Asian Development Bank (ADB) has stated that Pakistan has imposed the highest taxes on the telecom sector in the region, while 4G coverage in Pakistan is the lowest, and preparations for 5G are inadequate.

The ADB released a report on the status and ecosystem of Pakistan’s digital sector, which notes that Pakistan’s digital ecosystem requires further investment.

Currently, the digital sector contributes only 1.5% to the country’s GDP.

The report highlights that affording internet devices is a major challenge for women and low-income groups in Pakistan. Fixed broadband access stands at just 1.3%, and fiber optic network coverage is limited, necessitating immediate expansion.

While 80% of the population has access to mobile internet, actual usage remains low. About 86% of men and 53% of women own mobile phones, but only 53% of men and 33% of women have internet access.

The report emphasises the need to create a favorable environment for telecom investment, with a focus on laying fiber optics in underdeveloped areas. It also urges provincial governments to increase demand for fiber broadband in schools and hospitals.

For effective digital governance, a cybersecurity framework is essential. The report recommends digital literacy programs for women and the provision of affordable smartphones. It also calls for upgrades in data governance and service design for e-governance.

According to the ADB, digitising the agricultural value chain and SMEs can boost GDP, and women and youth in rural areas should be trained in online business skills.