Pakistan’s telecom and mobile phone industry has called on the government to introduce major tax relief measures and infrastructure reforms following the federal Budget 2026–27.
According to industry stakeholders, while some budget measures were welcomed—particularly those aimed at supporting local handset manufacturing and easing certain tax pressures—several key demands of the sector remain unaddressed.
The industry has urged policymakers to reduce the overall tax burden on mobile users, including advance withholding taxes and high sales taxes, arguing that current levels are making digital services less affordable for a large portion of the population. They also emphasized that millions of mobile users in Pakistan fall outside the formal tax net, yet continue to bear indirect taxation on telecom usage.
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In addition to tax reforms, telecom operators have called for improved infrastructure support, including lower duties on optical fiber equipment and policies that encourage faster rollout of broadband and 5G networks. They believe such steps are necessary to expand connectivity, improve service quality, and support Pakistan’s broader digital economy goals.
Industry representatives further highlighted that stronger policy support is needed to attract long-term investment, reduce operational costs, and ensure sustainable growth in the telecom sector.
Analysts say the budget reflects a mixed outcome for the industry, offering some incentives but falling short of the broader structural reforms the sector has been requesting.
