The Ministry of IT and Telecom has recently addressed critical concerns within pakistan’s telecom industry, establishing a clear pathway for the upcoming auction of next-generation mobile spectrum. This move, announced on January 9th, 2026, centers around stabilizing financial parameters for operators by locking in the dollar exchange rate and aligning interest rates with State Bank benchmarks.
Following this policy directive, the Pakistan Telecommunication Authority (PTA) is poised to release the Facts Memorandum (IM), a crucial document outlining the auction process for both existing telecom companies and prospective new entrants. This IM will detail participation guidelines and all relevant auction specifics.
Securing Investment: The New Spectrum Auction Framework
A key component of the revised framework involves pricing spectrum fees in US dollars. Consequently, the exchange rate will be pegged to the National Bank of Pakistan’s TT selling rate recorded on the day immediately preceding the auction. This aims to provide predictability and mitigate currency fluctuation risks for investors.
Payment terms are structured to ease the financial burden on operators: a minimum of 50% of the spectrum fee is due within one year of license issuance. The remaining 50% can be settled through five equal annual installments, attracting an interest rate of KIBOR offer rate plus 3%. This represents a significant shift from the 2021 policy, which utilized the now-discontinued London Interbank Offered Rate (LIBOR). Licences granted under this new system will have a validity period of 15 years.
Spectrum Availability and Pricing
The upcoming auction will encompass a diverse range of spectrum bands, designed to accommodate varying operator needs and facilitate network expansion. Thes include:
- 15 MHz of paired spectrum in the 700 MHz band
- 3.6 MHz of paired spectrum in the 1800 MHz band
- 20 MHz of paired spectrum in the 2100 MHz band
- 50 MHz of unpaired spectrum in the 2300 MHz band
- 190 MHz of unpaired spectrum in the 2600 MHz band
- 280 MHz of unpaired spectrum in the 3500 MHz band
Base prices have been established as follows:
| Spectrum Band | Price per 1 MHz |
|---|---|
| 700 MHz (Paired) | $6.5 million |
| 1800 MHz & 2100 MHz (Paired) | $14 million |
| 2300 MHz (Unpaired) | $1 million |
| 2600 MHz (Unpaired) | $1.25 million |
| 3500 MHz (Unpaired) | $0.65 million |
did you know? 5G network deployment has the potential to contribute $130 billion to Pakistan’s GDP by 2030 (source: GSMA).
Addressing Industry-Wide Concerns
Beyond the auction framework, the IT ministry acknowledges broader challenges facing the Pakistani telecom sector.Significant discussions have begun regarding measures to boost local 5G smartphone penetration, focusing on potential tax reductions to encourage domestic manufacturing. Proposals also include allowing duty-free imports of 5G equipment,speeding up nationwide adoption of this technology.
Recognizing the high energy costs impacting telecom operators, the ministry has proposed the establishment of a joint task force including the ministry, Power Division, NEPRA, PTA, operators, and power distribution companies. This task force aims to implement an industrial power tariff specifically for the telecom sector.
PTCL has been mandated to participate in the upcoming spectrum auction, signaling its importance. Jazz,a leading telecom operator,has publicly welcomed the recent policy directive.
long-standing structural challenges faced by the telecom sector have been addressed, these developments will translate into tangible progress, enabling sustained investment, network expansion and the delivery of affordable, high-quality connectivity nationwide.
I’ve found that a transparent and predictable regulatory surroundings is the cornerstone of a healthy telecom sector. these changes demonstrate a commitment to fostering growth and innovation.
Here’s what works best when supporting nationwide connectivity: proactive engagement between government and industry stakeholders to address challenges and pave the way for future investment.
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