Sahar Iqbal
Acundo Forbes karachi
sahar.iqbal@akhundforbes.com
Pakistan, a country rich in cultural diversity and history, is at the forefront of the rollout of 5G networks, a technological revolution, especially for the Global South. As the world seeks technological superiority, Pakistan is gearing up to be one of the countries offering the next wave of connectivity. This article examines the current regulatory framework, recent policy announcements, and the role of financial institutions in facilitating this revolutionary transition. It also delves into the intricate details of the legal, financial and strategic aspects surrounding 5G deployment in Pakistan.
This was announced by Pakistan Telecommunication Authority (PTA). June 2019 “Future Technology Demonstration and Development Framework”[1], Build a regulatory infrastructure for 5G in Pakistan. Companies registered with Pakistan Engineering Council (PEC) and/or Securities and Exchange Commission of Pakistan (SECP) can now apply for testing and development licenses under this broader framework. This document laid the foundation for the later stages of 5G deployment by carefully outlining eligibility requirements, application procedures, and conditions and circumstances related to temporary test licenses.
The ambitious plan of the Ministry of Information Technology and Telecommunications (MOITT) to launch 5G services in Pakistan is August 2024[2] The Department has worked with the Deputy Federal Cabinet to develop a thorough business strategy outlining the timeline for 5G deployment. Strategic elements of the plan include the creation of an interagency advisory body to oversee the appointment and development of foreign advisors. A focus on reducing infrastructure deployment costs represents a progressive strategy to address budget constraints and ensure a more seamless transition.
State Bank of Pakistan (SBP), the central bank of Pakistan, plays a pivotal role in regulating the financial ecosystem of the technology industry. A testament to SBP’s dedication to promoting the export of software and IT-enabled services is: Circular No. 17 of 2023.[3] The circular facilitates a favorable environment for foreign exchange inflows by allowing exporters in the IT sector to keep 50% of their profits abroad. Further streamlining financial transactions and paving the way for technology agreements and investments in 5G infrastructure is the general approval granted by the SBP for external payments related to digital services.
MOITT is leading Pakistan towards technological superiority and is looking at: Malaysia’s pioneering 5G implementation This emphasizes a collaborative strategy and demonstrates a commitment to implementing international best practices. This progressive approach fosters an atmosphere of innovation and continuous improvement, in line with the dynamic nature of the IT industry, and positions Pakistan to gain critical insights from successful overseas models.
Dealing with delays and financial costs
Pakistan admits it lags behind the rest of the world in terms of 5G rollout[5] However, the government is taking a proactive stance to improve this problem, as evidenced by its commitment to developing policy frameworks and infrastructure. To ensure that the economic benefits of 5G technology are fully realized, concerted measures will be implemented in the coming months to overcome financial obstacles and ensure a smooth transition to 5G. is expected.
11th October In 2023, the Federal Cabinet will approve the long-awaited 5G spectrum auction, which will be implemented by a committee headed by the Finance Minister, according to the Minister of Information Technology and Telecommunications. With 300 megahertz available, this frequency band has the potential to completely change the communications landscape in Pakistan. With the help of the Pakistan Telecommunication Authority and a soon-to-be-appointed consultant, the committee comprising ministries of IT, telecommunications and industries hopes to ensure a seamless auction process. Additionally, the Cabinet approved the sharing of communications infrastructure between companies. This is seen as a business-friendly measure that can significantly reduce operating costs by allowing companies to use each other’s towers.This change is expected to result in significant cost savings – Probably billions of rupees – This could be used to improve the quality and accessibility of telecommunications services across the country.
Pakistan’s dedication to technology advancement is demonstrated by the current framework, recent policy declarations, and the role of the SBP. MOITT’s forward-thinking strategy demonstrates a sophisticated understanding of the nuances involved in ushering in a new era of connectivity. In addition to being a technological advancement, the 5G initiative will also involve regulators, financial institutions, and industry stakeholders to shape Pakistan’s future digital landscape and maintain the country’s position in global innovation and technology. It is also a joint effort.
