ISLAMABAD: Pakistan’s telecom sector set a historic record by surpassing the Rs 1 trillion revenue mark during 2024-25, up from Rs 957 billion during the same period of the previous year, says Pakistan Telecommunication Authority (PTA). Official documents revealed that investments exceeded USD 838 million in 2024-25, up from USD 766 million in the previous year, reflecting steady growth and investor confidence, while fiscal contributions rose to Rs 402 billion, up from Rs 336 billion, reinforcing the sector’s role as a key driver of the economy. These achievements illustrate the sector’s stable financial performance and its growing importance in Pakistan’s economic landscape. The FDI inflow in the sector reached USD 97 million in 2024-25 compared to USD 46 million in the previous year. READ MORE: Pakistan’s telecom sector faces Rs152bn revenue decline in FY25 The documents noted that despite steady progress, multiple challenges remain. The deployment of 5G requires capital-intensive upgrades such as small cells, advanced antennas, and fiber backhaul. Operators face long timelines for return on investment, making government incentives and public-private partnerships critical to supporting rollout. Spectrum-related litigation also creates regulatory uncertainty and can delay the timely availability of bands. Financial sustainability also remains a key concern, as does the need for proactive outreach to counter health-related misconceptions and to inform the public about the tangible benefits of 5G, including enhanced connectivity and support for emerging technologies. To accelerate readiness, the government has prioritized nationwide fiberisation. Policies such as waiving Right-of-Way charges are facilitating rapid fiber deployment, ensuring affordable backhaul for next-generation networks. By aligning with international standards and maintaining strong industry-government coordination, Pakistanispositioningitselftoleverage5Gasaplatform for innovation, socio-economic growth, and global competitiveness. Copyright Business Recorder, 2026