ISLAMABAD: Telecom companies in Pakistan have submitted their budget proposals for the fiscal year 2026-27, asking for tax relief and policy incentives.
The sector aims to boost digital infrastructure and expand connectivity across the country.
Telecom operators have requested the government to reduce withholding tax from 6% to 4%.
They say this step would encourage investment in broadband and mobile services and support industry growth.
Telecom companies also proposed extending the turnover tax credit period from two to five years.
A longer period, they argue, would help maintain financial stability and support infrastructure projects.
Pakistan’s telecom sector has grown rapidly in recent years, with mobile penetration reaching nearly 90% of the population.
Expansion of high-speed internet and 5G networks is seen as critical to economic development, digital services, and rural connectivity.
Removing duties to support 5G expansion:
Operators urged the government to remove customs duties on 5G equipment and fiber optic cables.
They estimate this could unlock $12 billion in new investments, especially for network expansion.
Industry experts said lower equipment costs could improve internet access in rural areas and accelerate digital inclusion.
The sector has recommended reducing advance income tax on mobile users from 15% to 8%.
They stressed that this would make mobile services more affordable, particularly for low-income prepaid customers.
Telecom companies also want the government to withdraw powers allowing adjustments to advance tax estimates, saying such mechanisms create uncertainty for businesses.
Urgent need to expand 4G and 5G networks:
Operators emphasized that rising operational costs are slowing digital progress. They urged immediate government action to expand 4G and 5G networks across Pakistan.
Over the past six years, the telecom sector has invested more than $6.3 billion and contributed over Rs1.9 trillion to the national exchequer.
This highlights the industry’s importance to Pakistan’s digital economy.
