By Staff Reporter
ISLAMABAD: The Economic Coordination Committee of the cabinet on Tuesday approved plans for its biggest-ever spectrum auction, setting the stage for the country’s first commercial 5G services and aiming to ease chronic internet congestion that has hampered the economy.
The ECC, chaired by Finance Minister Muhammad Aurangzeb, cleared recommendations from the Spectrum Advisory Committee, with the proposals now headed to the federal cabinet for final sign-off. “We have been on the journey of Digital Pakistan, and accelerating that journey,” Aurangzeb said at a press conference in Islamabad, calling the auction an important enabler. He stressed that the recommendations were developed with a “Pakistan-first” approach, balancing fiscal needs with the telecom sector’s ability to fund network expansions.
Information and Technology Minister Shaza Fatima Khawaja, speaking alongside Aurangzeb, said the auction of nearly 600 megahertz of spectrum would be completed by the end of January or early February. That marks a sharp increase from the 274 MHz currently in use, which she blamed for subpar internet quality compared with international and regional benchmarks. “This means we are using two lanes for traffic which requires eight, which is why there is congestion, your internet does not work and you face challenges,” Khawaja said, noting that the country’s 240 million people rely on the limited bandwidth.
The auction will include bands being offered for the first time in Pakistan, except for the 1800 MHz and 2300 MHz frequencies. It draws on a November report from US consultancy National Economic Research Associates, which outlined auction design, base prices and other terms after delays tied to the merger of Pakistan Telecommunication Co. and Telenor Pakistan, plus litigation over the 2600 MHz band. The report highlighted 606 MHz across six major bands: 700 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2600 MHz and 3500 MHz, with the 2600 MHz seen as most suitable for 5G.
Once the cabinet approves, the Pakistan Telecommunication Authority will release an information memorandum to kick off consultations and negotiations with stakeholders and telecom operators. Khawaja said the PTA would enforce rollout obligations on winning bidders, ensuring deployments within four to six months so services “visibly” improve. Beyond boosting 3G and 4G, the spectrum will enable 5G launches, aligning with the government’s digitization push under the Digital Nation Pakistan Act, 2025. “According to Connect 2030 — which the prime minister will inaugurate soon — we will ensure that over the next five years the minimum connectivity available to users should 100 Mbps,” she said.
The move comes as Pakistan grapples with a catch-22 on spectrum pricing: high fees could deter investment, while low ones might shortchange government coffers. Officials said the structure reflects consultations with users, the PTA and reviews of global benchmarks. To spur infrastructure builds, the government has scrapped Right of Way charges, Khawaja added, pointing out that less than 5% of the country is currently fiberized.
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