The federal budget for 2025–26 shows a big drop in expected income from 4G and 5G license fees. Instead, the government plans to raise more money from taxes on mobile phones. Budget documents indicate that Rs22.612 billion is set aside as non-tax revenue from 4G and 5G licenses. This is much lower than the Rs32.612 billion that was first expected for 2024–25, which was later cut to Rs27 billion.
This decrease in expected spectrum revenue hints at a delay in launching 5G or less interest from telecom companies. Although officials from the Ministry of IT and PTA said Pakistan is preparing for 5G trials, the lower revenue target shows limited progress in auction schedules.
On the other hand, the government expects to collect Rs12 billion from mobile phone import taxes in 2025–26. This is an increase from Rs 10 billion for the current year. It shows a shift to relying more on charges from consumers, as telecom growth slows down.
Another key source of non-tax income is the Pakistan Telecommunication Authority’s surplus. The government expects Rs1.1 trillion from this next year, less than the Rs1.2 trillion planned for 2024–25. It is also well below the Rs1.431 trillion received last year.
Revenue from penalties and profits of regulatory bodies also drops. For 2025–26, Rs6.239 billion is allocated for this, down from the initial estimate of Rs10.036 billion. That figure was later cut sharply to just Rs654.7 million.
Overall, the changes indicate that the government relies more on existing telecom structures and consumer taxes than on new sources, such as 5G. It also emphasizes imports of mobile phones and collections from regulators as the main income sources.
Due to delays in rolling out 5G and lower revenue from spectrum auctions, consumers are likely to continue paying higher telecom taxes.
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