Telecom operators in Pakistan propose tax reductions favorable to 5G

Telecom operators in Pakistan are seeking tax breaks and incentives to facilitate the development of 5G networks in the country. They have expressed concerns regarding the high capital and operational expenditures associated with 5G, which may impede their return on investment. To address these challenges, they have recently proposed the government of Pakistan, tax breaks on spectrum fees and incentives for local handset manufacturing. The operators emphasize the need for the government to incentivize the transition to 5G and create a favorable environment for its implementation.

In South Asia, discussions are underway regarding spectrum harmonization and collaboration among countries in light of the arrival of 5G. While some countries in the region have already allocated or identified 5G spectrum, others are still in the trial phase or using it for 4G technology.

The government of Pakistan is currently considering different proposals for launching 5G services, with a focus on major cities. Initial plans aimed to auction 5G spectrum by the end of March 2023, prioritizing deployment in urban centers. However, political instability in the country has caused delays in the process. Official sources indicate that the government is actively exploring options to facilitate the launch of 5G networks, taking into account the demands and recommendations of telecom operators. The government’s objective is to create a conducive environment for the successful implementation of 5G technology in Pakistan.