As Pakistan moves closer to its long-awaited 5G launch, industry leaders are warning that rushing into next-generation networks without preparing consumers could do more harm than good.
The head of the Telecom Operators Association of Pakistan (TOA) has cautioned that limited access to affordable 5G devices, weak consumer financing, and low digital readiness could leave expensive networks underutilized while placing additional pressure on Pakistan’s already strained foreign exchange reserves.
Related: Federal Cabinet Approves 5G Spectrum Auction, Rollout Set for Early 2026
Pakistan Prepares for Largest Spectrum Auction
Pakistan is gearing up for its biggest mobile spectrum auction to date, with the government planning to offer nearly 600 MHz of additional spectrum across multiple frequency bands. The auction, announced by Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja in early January 2026, will include seven spectrum bands, five of which are new.
Once the auction concludes, telecom operators are expected to deploy 5G infrastructure within four to six months, with commercial services likely launching in major urban centers such as Islamabad, Lahore, and Karachi by mid-February 2026.
Industry Warns of Demand-Side Gaps
Aamir Ibrahim, CEO of Jazz and chairman of TOA, has urged policymakers to look beyond auction timelines and coverage targets. He stressed that technology alone does not drive transformation unless consumers are able and willing to use it.
According to industry estimates, only a small portion of Pakistan’s mobile users currently own 5G-enabled smartphones. High device prices remain the biggest barrier, with entry-level 5G phones typically starting around Rs. 90,000 and premium models reaching as high as Rs. 700,000.
Related: Pakistan Telecom Merger Set to Transform Industry Ahead of 5G Spectrum Auction
High Smartphone Costs Limit 5G Adoption
Domestic manufacturing data highlights the scale of the challenge. Between 2019 and late 2025, Pakistan assembled roughly 152 million mobile devices, nearly 60 percent of which were basic 2G feature phones. Even among locally assembled smartphones, the vast majority support only 4G, with virtually no 5G models produced domestically.
Adding 5G capability significantly increases production costs due to more complex radio components and advanced chipsets. Retooling local assembly lines can take months, and in Pakistan’s price-sensitive market, even modest cost increases risk pushing smartphones out of reach for average consumers.
Lack of Financing Hampers Uptake
Unlike developed markets where telecom operators bundle smartphones with service plans and offer installment options, Pakistan lacks a mature consumer financing ecosystem for mobile devices. Most users are required to pay the full handset price upfront, a major hurdle for prepaid customers with limited purchasing power.
Industry leaders argue that without installment plans, tax relief, or subsidy mechanisms, mass adoption of 5G-capable devices will remain unlikely.
Risk of Underutilized 5G Networks
Ibrahim warned that ignoring these demand-side realities could result in a costly mismatch between infrastructure investment and actual usage. An advanced 5G network with few users would not only fail commercially but also represent a missed national opportunity.
He also pointed to Pakistan’s broader digital divide. Despite more than a decade since the country’s first 4G auction, around one in four mobile subscribers still does not use mobile broadband due to limited digital skills, lack of relevant local content, and low trust in digital services.
Related: Federal Cabinet Approves 5G Spectrum Auction for February 2026
Call for a Balanced 5G Strategy
The telecom industry is urging regulators to adopt a more balanced approach to 5G deployment. Key recommendations include reducing the heavy tax burden on smartphones, enabling consumer financing for devices, supporting local manufacturing of 5G handsets, and aligning spectrum policy with market realities.
As Pakistan approaches its first true 5G rollout, the debate highlights a critical question: should 5G be introduced as a symbolic milestone or as an inclusive platform that delivers real benefits to everyday users?
Industry leaders argue that only by prioritizing affordability, digital literacy, and ecosystem readiness can 5G become a catalyst for economic growth rather than an expensive, underused upgrade.
