Foreign consultants engaged by the Pakistan Telecommunication Authority (PTA) have highlighted significant issues that may delay the country’s anticipated launch of 5G technology, which is planned for next year.

The findings, presented by the National Economic Research Associates (NERA), a US-supported consultancy, were shared after consultations with industry stakeholders.

During a briefing with government officials, NERA outlined various policy, business, and administrative obstacles that could impede the auction of 5G spectrum and its subsequent deployment.

The meeting was chaired by Finance Minister Muhammad Aurangzeb and included key figures such as Rana Tanveer Hussain, Minister for Industries and Production, and Shaza Fatima Khawaja, Minister of State for Information Technology.

The consultants identified several critical challenges: administrative restrictions on internet services, underutilization of existing spectrum, and the preference for auctioning the new spectrum in foreign currency rather than Pakistani rupees.

They cautioned that these factors could stifle competition and diminish the financial bids necessary for effectively launching 5G.

Furthermore, the report expressed concerns about Pakistan’s reliance on foreign exchange-based spectrum auctions, a model that many countries have moved away from.

The consultants warned that adhering to this model could limit participation and reduce investment in the rollout of the technology.

Some telecom companies have also voiced hesitance about participating in the auction, citing economic constraints and regulatory hurdles.

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Pakistan has been struggling to fully leverage its 4G capabilities, with operators criticizing the regulatory environment as a barrier to sector growth.

Stakeholders remain divided on whether the focus should be on maximizing auction revenue or enhancing access to 5G services.

NERA’s findings indicate that a successful rollout will require the government to relax regulatory restrictions, particularly those concerning traffic management and content controls.

The final report will offer additional recommendations for overcoming these challenges as Pakistan advances its digital economy ambitions.