Pakistan IT minister announced on Thursday that 5G pilot projects would begin in the country’s major cities next week, while commercial rollout was expected to begin in the coming months.

The development came after Pakistan generated $510 million (around Rs142 billion) from the landmark auction of Next Generation Mobile Services (NGMS) spectrum, while the telecom regulator completed the position assignment auction to determine the exact placement of spectrum blocks secured by operators.

Speaking to a press briefing following the completion of the multi-band spectrum auction process, Shaza Fatima Khawaja, Minister for Information Technology and Telecommunication, said several countries had inquired about Pakistan’s 5G plans during the Mobile World Congress, reflecting growing international interest in the country’s digital transformation.

The minister credited the coordinated efforts of the Pakistan Telecommunication Authority (PTA), the Frequency Allocation Board, and other institutions for making the auction possible, adding that the Armed Forces also cooperated in vacating the spectrum required for the process.

 “The Internet has become a basic necessity for Pakistan,” she said.

The minister also said the government, on the directive of the prime minister, was working to finalise a smartphone leasing policy aimed at improving access to smart devices.

Highlighting sector challenges, she said average revenue per user (ARPU) in Pakistan remained the lowest in the region, which constrains telecom operators’ investment capacity.

She reiterated that the Ministry of IT and the telecom regulator had consistently advocated reducing taxes on mobile services and devices, though such taxes fall under the jurisdiction of the Federal Board of Revenue.

Meanwhile, PTA chairman Hafeez Ur Rehman said the position assignment was completed following multiple rounds, generating an additional $3 million.

Describing it as one of the largest spectrum sales globally in terms of volume, the PTA chief said the government had completed its responsibility by conducting the auction, and it was now the telecom operators’ turn to translate the spectrum into improved services for consumers.

The position assignment stage was conducted on Thursday, allowing telecom operators to determine the exact placement of the spectrum blocks they acquired in the auction.

The process covered the 2600 MHz and 3500 MHz bands, where operators bid for lower, middle and upper block positions to optimise network performance and minimise interference between networks.

However, no assignment process was required for the 700 MHz band, which was secured solely by Jazz during the auction.

PTA chairman said mobile packages had increased by only 10–15% over the past three years, despite rising operational costs, adding that 5G rollout would not lead to higher package prices.

He further said the deployment of new spectrum would significantly improve connectivity, with average internet speeds expected to increase from around 4 Mbps to nearly 20 Mbps.