Rushing 5G Without Affordable Phones Could Strain Foreign Exchange Reserves, Warns Telecom Industry Chief

Aamir Ibrahim, the chairman of the Telecom Operators Association of Pakistan, has advised against jumping into next-generation networks without reasonably priced devices as Pakistan gets ready to auction off 5G spectrum.

He has warned that an early rollout could deplete limited foreign exchange and take funds away from enhancing connectivity.

The speed at which 5G networks are introduced will not determine Pakistan’s digital destiny, according to Aamir, but rather whether or not common people can buy the gadgets needed to use them and find enough daily value to stay connected.

“The advent of technology does not change society on its own. That is what technology does,” he writes.

Aamir contended that the public conversation surrounding 5G has mostly concentrated on future readiness and global competitiveness, ignoring a more fundamental question: who will utilize 5G in Pakistan?

Only around 2% of Pakistani mobile subscribers presently have a 5G-enabled phone, according to industry estimates. A high-end iPhone model can cost up to PKR 700,000, while entry-level 5G devices start at about PKR 90,000.

According to Aamir, the cost of devices alone prevents the majority of Pakistanis from having a meaningful 5G experience because most mobile users have prepaid connections and typical salaries are still low.

This is supported by the local manufacturing data. Approximately 60% of the 152 million mobile devices that Pakistan assembled domestically between 2019 and late 2025 were simple 2G feature phones.

Nearly no 5G models have been produced locally, and even within the smartphone category, production has concentrated nearly exclusively on low-cost 4G handsets.

According to Aamir, the addition of 5G capacity increases the cost of producing phones, primarily because of more complicated radio components and modems. Even slight price hikes can push devices out of the mass market in price-sensitive economies like Pakistan.

He also notes that even if regulatory clarity increases, local production cannot change quickly because retooling assembly lines to enable 5G usually takes several months.

Adoption is further hampered by the lack of broad cellphone financing in addition to device expenses. Pakistan lacks a sophisticated consumer credit ecosystem, in contrast to industrialized economies where carriers offer payment alternatives and combine cellphones with service agreements. since of this, many users are unable to purchase high-end products since they must pay the entire cost up front.

Aamir cautioned that if policy efforts are concentrated on deployment schedules and coverage requirements without addressing demand-side obstacles, underutilized networks may result. “A costly and unused 5G network would not be a minor drawback. He contends that it would be a national failure.

Additionally, he pointed out a “usability gap” in Pakistan’s online environment. Millions of people stay offline even in areas with network coverage because of poor digital skills, a dearth of pertinent local content, and a lack of confidence in digital services. Approximately one in four mobile users still do not use mobile broadband more than ten years after Pakistan’s first 4G auction.

Aamir warned that if these problems are not resolved, 5G may exacerbate rather than close the digital divide, benefiting a few urban elite at the expense of the population. He urged the government and authorities to take a more balanced stance, which would include lowering device taxes, facilitating financing options, and adjusting spectrum policy to reflect the needs of consumers.

In the end, Aamir contended that the number of Pakistanis who can truly engage in the digital economy should be used to gauge the success of 5G rather than coverage maps or auction profits. He declared, “Pakistan does not need to win a race to launch 5G specified elsewhere.” “It requires a digital policy that puts affordability, accessibility, and long-term inclusion ahead of speed and symbolism.”

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