GSMA warns stalled digital growth risks investment

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ISLAMABAD: GSMA, a global organisation representing mobile operators and entities across the mobile ecosystem and adjacent industries, has warned that Pakistan, despite having talent, ambition, and a vision for ‘Digital Pakistan’, risks falling behind regional peers unless urgent reforms are introduced in telecom policy — a delay that could drive away investors and ultimately harm consumers.

Julian Gorman, Head of Asia Pacific at GSMA, told the media on Thursday after the ‘GSMA Digital Nation Summit 2025’ that the country’s telecom sector suffers from excessive taxation, limited spectrum availability, and a lack of long-term policy direction.

He noted that reforming telecom taxation was possible, even under an IMF programme, citing Argentina as an example. “If urgent reforms are not enacted, investors will shift to other markets. Similarly, freelancers — a vital segment of Pakistan’s workforce — cannot thrive without reliable internet and electricity,” he added.

Gorman stressed the increasing demand for spectrum and urged the government to bridge the spectrum usage and availability gap. He also pointed to the slow pace of digitalisation, warning that Pakistan is at a critical juncture as artificial intelligence (AI) and other technologies rapidly evolve globally.

He called for accelerating satellite-based internet adoption, describing it as vital for economic growth, the IT sector, and overall societal development.

GSMA also underscored the importance of building ‘digital trust’. “From personal identity to financial data, users must feel secure. A safe digital environment is essential,” he said.

At the summit, the GSMA launched its latest report, Unlocking Pakistan’s Digital Potential: Reform, Trust and Opportunity. It highlights how Pakistan is lagging in 5G rollout compared to other Asia Pacific nations that are leveraging the technology to enable smart cities, industrial automation, and inclusive digital growth.

The report pointed out that Pakistan’s 5G deployment remains stalled, noting that 5G is about more than speed—it enables real-time services and economic transformation.

Published in Dawn, August 8th, 2025

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