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PM Forms High-Level Committee to Finalize 5G Spectrum Prices in Pakistan

PM Forms High-Level Committee to Finalize 5G Spectrum Prices in Pakistan

Pakistan has moved a major step closer to its long-awaited 5G launch as the Prime Minister has officially formed a high-level committee to finalize spectrum pricing and auction policy. The government wants to ensure that Pakistan’s 5G rollout is practical, sustainable, investor-friendly, and supportive of long-term digital growth.

According to reliable sources, the committee has been tasked with carefully reviewing economic, technical, and policy factors before announcing the final spectrum auction framework. This move comes at a time when telecom operators are facing high operational costs and currency instability, which has made spectrum pricing a highly sensitive issue for both the government and telecom sector.


Sub-Committee Led by Dr. Musadik Malik to Review Pricing Framework

Key Leadership and Responsibility

A dedicated sub-committee has been formed under the leadership of Federal Minister Dr. Musadik Malik. This team will evaluate critical elements of the 5G auction including:

  • Spectrum pricing for each frequency band
  • Payment structure and instalment policy
  • Policy directives and cabinet approval process
  • Auction rules and participation criteria

The purpose of this sub-committee is to develop a balanced pricing model that protects government revenue but also allows telecom operators enough financial space to invest in infrastructure and rollout.


Cabinet Divided Over Auction Policy — Flexible vs Previous Terms

Internal Discussions and Differences

Sources confirm that the federal cabinet currently holds mixed opinions regarding the 5G auction structure. A section of the cabinet wants the auction to be conducted under previous policy terms and conditions, similar to earlier spectrum sales. However, another group supports relaxed and investor-friendly policies to ensure better participation and faster rollout.

Supporters of flexible policy argue that:

  • High pricing may discourage investment
  • Telecom operators already face heavy taxes and rising costs
  • Currency fluctuation increases financial uncertainty
  • Lower prices will allow faster 5G expansion across Pakistan

On the other hand, officials supporting previous terms believe that the state must safeguard its revenue interest and avoid undervaluing national spectrum assets.

The final decision now rests with the newly formed committee.


Telecom Operators Want Dollar Rate Frozen for Auction

Industry’s Major Demand

One of the most debated points in the ongoing policy discussion is the US dollar exchange rate. Telecom operators have demanded that the exchange rate should be frozen on the day of the auction. This means payments made in instalments should be calculated based on that fixed exchange value instead of changing with currency fluctuation.

According to industry sources, telecom companies believe that:

  • Currency volatility makes financial planning risky
  • Rising dollar rate increases loan burden
  • Fixed exchange rate will stabilize long-term investments
  • Payments in Pakistani Rupees will ease financial pressure

They argue that without exchange stability, telecom companies will struggle to invest in network deployment, new technology, towers, and infrastructure needed for 5G.


PTA to Issue Information Memorandum After Policy Approval

Next Steps in the 5G Process

Once the sub-committee completes its review and finalizes the financial terms, the policy directives will be sent for approval. After official approval, the Pakistan Telecommunication Authority (PTA) will issue the Information Memorandum (IM).

The government has set an ambitious target of mid-February to conduct the 5G spectrum auction.

IM Will Define Full Auction Roadmap

After policy approval, PTA will determine:

  • Final auction format
  • Spectrum bands
  • Base reserve price
  • Lot structure
  • Rollout obligations

The detailed Information Memorandum will further describe:

  • Auction rules and bidding procedures
  • Eligibility conditions
  • Spectrum caps per operator
  • Payment schedules and license duration
  • Legal, financial, and compliance obligations
  • Rollout timelines and coverage targets
  • Service quality standards and penalties

This IM will serve as the official document guiding telecom operators through the entire 5G auction and rollout process.


PTA Consultant Suggests Lower Prices to Encourage Investment

Consultant’s Recommendation

According to sources, PTA’s international consultant has recommended maintaining reasonable and comparatively lower spectrum prices. The intention is to:

  • Encourage maximum participation
  • Promote strong bidding activity
  • Allow more investment for network development
  • Fast-track nationwide 5G deployment

The consultant’s opinion suggests that if spectrum becomes too expensive, operators may win licenses but struggle to build infrastructure. This may result in slow rollout, poor coverage, and higher consumer costs.

Telecom Operators Show Positive Interest

Reports indicate that all major telecom operators have expressed willingness to participate in the auction — but final participation will depend on how:

  • Pricing is structured
  • Payment flexibility is allowed
  • Exchange rate risk is managed

If conditions remain business-friendly, Pakistan may see very healthy competition in the 5G auction.


Why 5G Pricing Matters for Pakistan’s Digital Future

Economic and Digital Importance

Pakistan’s transition to 5G is not simply a technology upgrade; it is a major digital transformation step. Affordable spectrum policies can unlock multiple benefits:

  • Boost digital economy and e-commerce
  • Enable smart cities and automation
  • Improve mobile broadband speed and reliability
  • Support innovation in health, education, and industry
  • Strengthen Pakistan’s IT and telecom ecosystem

However, if pricing is unrealistic, it can slow progress and limit access to advanced services for citizens.


Possible Spectrum Bands for Pakistan’s 5G Rollout

While the final decision will come after policy approval, industry expectations suggest Pakistan may consider:

  • Mid-band spectrum (3.5 GHz range) — best balance of speed and coverage
  • Low-band spectrum (700–900 MHz) — wider coverage, rural reach
  • High-band spectrum (mmWave) — extremely high speed, limited coverage zones

The final structure will be confirmed by PTA in the Information Memorandum.


Targeted Mid-February Auction — Can Pakistan Meet the Deadline?

Government’s Ambitious Timeline

The federal government has set mid-February as its target to conduct the 5G auction. Meeting this deadline will require:

  • Fast policy finalization
  • Cabinet approval without major delays
  • Quick preparation of PTA documents
  • Strong coordination between ministries

If the process remains smooth, Pakistan may finally move from planning to execution stage after years of discussions.


Challenges Pakistan Must Overcome for Smooth 5G Launch

While policy formation is progressing, Pakistan must still overcome several challenges including:

  • High cost of network deployment
  • Limited availability of 5G devices in market
  • Inflation and economic pressure
  • Heavy telecom taxation
  • Need for fiber and backhaul expansion

Experts believe addressing these issues is necessary to ensure inclusive and successful 5G rollout.


Conclusion – PM Forms High-Level Committee to Finalize 5G Spectrum Prices in Pakistan

The decision of the Prime Minister to form a high-level committee marks a decisive push towards Pakistan’s 5G future. With Federal Minister Dr. Musadik Malik leading the sub-committee, the government is aiming to finalize balanced spectrum prices, flexible payment terms, and an effective auction framework.

Once policy directives are approved and PTA issues the Information Memorandum, Pakistan will officially enter the final phase of its 5G preparation. If pricing remains reasonable and exchange-rate concerns are handled properly, telecom operators are expected to participate actively — paving the way for a faster, broader, and more sustainable 5G rollout across Pakistan.

  • PM forms high-level committee to finalize 5G spectrum pricing
  • Sub-committee led by Dr. Musadik Malik
  • Cabinet divided over auction policy terms
  • Telecom operators demand frozen dollar rate
  • PTA to issue Information Memorandum after approval
  • Government targets mid-February for auction
  • PTA consultant recommends lower spectrum prices
  • Telecom operators show strong participation interest

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