Islamabad – Pakistan is preparing for a major overhaul of its telecommunications infrastructure as the Pakistan Telecommunication Authority (PTA) moves forward with a 5G spectrum auction scheduled for March 10, 2026. Simultaneously, the Ministry of Industries and Production has finalized a new Mobile and Electronic Devices Manufacturing Policy 2026-33, anticipating increased demand for compatible devices.
The spectrum auction, encompassing 700, 1800, 2100, 2300, 2600, and 3500 MHz bands, is expected to facilitate the commercial launch of 5G services across the country by mid-2026, according to the PTA. The auction process includes an application deadline of February 27, 2026, requiring a pre-bid bank guarantee of $15 million. The initial phase of the auction will focus on the 2600 MHz and 3500 MHz bands, with limits placed on the amount of spectrum any single operator can acquire.
The Ministry of Industries’ new policy aims to support the anticipated surge in smartphone demand. The policy, approved by the federal cabinet, introduces an 8 percent incentive on mobile phone exports and reduces customs duties on imported parts. Conversely, duties on the import of completely built-up (CBU) mobile phones and accessories will be increased. Currently, Pakistan has 37 licensed mobile set manufacturers producing approximately 40 million mobile units annually, with 30.2 million sets assembled in 2025, roughly 40 percent of which were feature phones.
Amir Allawala, a senior member of the Pakistan Mobile Phone Manufacturers Association, stated that the policy is “coming at the right time,” as telecom operators will require approximately five to six months to establish the necessary infrastructure for 5G deployment in major cities and to expand 4G coverage. “The mobile phone industry also needs around the same time to shift to 5G sets, and many companies making feature phones are already in the process of shifting their production lines to smartphones,” Allawala added. The policy also proposes the creation of a dedicated Mobile &. Electronics Devices Cell within the Engineering Development Board (EDB) to oversee implementation and coordination.
Federal Minister for Information Technology and Telecommunication, Shaza Fatima Khawaja, has highlighted the urgent need for increased spectrum availability, attributing current slow internet speeds to a shortage. She noted that Pakistan currently operates its mobile internet network on only 274 megahertz of spectrum for a population of nearly 240 million, a significantly lower level compared to neighboring Bangladesh, which has approximately 600 megahertz available for a smaller population. The minister previously announced the spectrum auction and 5G timeline on January 3, 2026, acknowledging persistent internet speed issues across the country.
The Ministry of Industries and Production, led by Special Assistant to the Prime Minister Haroon Akhtar Khan, views the policy as a crucial step in bolstering the country’s industrial sector, with a focus on expanding beyond mobile phones into broader electronics manufacturing. The policy is now awaiting final approval from the prime minister.
