Govt.’s digital reforms to boost connectivity, investment: Shaza Fatima

ISLAMABAD, Jul 28 (APP):Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on Tuesday said the government had accelerated digital transformation through policy reforms, the expansion of fibre infrastructure, spectrum reforms and nationwide collaboration, expressing confidence that these measures would strengthen connectivity, attract investment and contribute billions of dollars to the economy in the coming years.

Speaking at the GSMA Digital Nation Pakistan event, the minister said Prime Minister Shehbaz Sharif had demonstrated a strong commitment to technology even during his tenure as Chief Minister of Punjab by introducing e-facilitation centres, e-libraries, e-employment centres and free public Wi-Fi hotspots.

She said he also used teleconferencing to conduct meetings with officials in South Punjab, reflecting his early focus on technology-driven governance.

Shaza Fatima said that after assuming office, one of the government’s first priorities was to accelerate digital transformation and improve nationwide connectivity.

She said the Prime Minister extended full support to the government’s fibreisation programme and spectrum reforms, while Pakistan also landed new submarine fibre-optic cables and introduced Sea-WE fibre-related licences to strengthen international connectivity.

Shaza Fatima said the spectrum auction generated $509 million in revenue while securing 480 MHz of spectrum, which she described as the largest spectrum auction in the world.

She said the government’s pricing strategy, policy framework and rollout obligations would produce long-term dividends by improving digital connectivity across the country.

The minister said the telecom industry had already begun the rollout following the auction, enabling the introduction of 5G services in Pakistan for the first time.

She said the success of the spectrum auction reflected a whole-of-government approach involving the Special Investment Facilitation Council (SIFC), regulators, the Spectrum Auction Committee, the Prime Minister, the Chief of Defence Staff, Field Marshal Syed Asim Munir, and other stakeholders.

She said the government’s flagship Digital Economy Enhancement Programme, being implemented with the support of the World Bank, would strengthen Pakistan’s digital economy and generate billions of dollars in additional revenue over the coming years, although its full impact would become visible gradually.

Highlighting digital inclusion, Shaza Fatima said the GSMA Gender Gap Report showed Pakistan had made remarkable progress in reducing the mobile internet gender gap.

She said the gap declined from 38 per cent in 2024 to 25pc in 2025 and further to 8pc in 2026, marking the fastest improvement in the region.

The minister said women’s inclusion in the digital economy was essential for Pakistan’s future, adding that excluding half of the population from economic participation would undermine national development.

She said the government, in collaboration with the telecom industry and the regulator, distributed 10 million free SIMs and digital wallets to women to promote digital payments and increase their participation in the digital economy.

Shaza Fatima said millions of people in underserved rural areas had also been connected through projects implemented by the Universal Service Fund (USF), further expanding digital inclusion across the country.

The minister thanked the provincial governments for supporting the federal government’s reform agenda, saying that while the federal government was responsible for policymaking and regulatory reforms, implementation depended on active cooperation from the provinces.

She said the provincial governments were making encouraging progress in digital services, digital transformation and the adoption of artificial intelligence in governance and economic development, adding that close collaboration among all tiers of government was essential for achieving national digital objectives.

Shaza Fatima said Pakistan had entered a new phase of digital transformation in which emerging technologies required vertical integration and coordinated national planning.

She urged the federal, provincial and local governments to align their digital strategies, avoid duplication of resources, share experiences and technological solutions, and work collectively to accelerate the country’s digital progress.

Shaza Fatima Khawaja said the global digital economy was undergoing a fundamental transformation, with the telecom sector’s contribution to the global economy projected to rise from $6.5 trillion to nearly $11 trillion by 2030, according to the GSMA.

The minister said Pakistan’s telecom industry was contributing billion of rupees annually to the national economy, making it one of the country’s most significant economic sectors.

She said while 5.8 billion people around the world were now connected to the internet and more than half were using 5G services, nearly 2.6 billion people remained offline, highlighting the need to expand digital connectivity globally.

Shaza Fatima said digital and telecom connectivity had become a fundamental service that unlocked economic opportunities and human potential.

She said Pakistan still had a long way to go in ensuring reliable, high-speed internet connectivity across every part of the country and stressed that attracting investment depended not only on market size but also on trust, policy consistency and regulatory certainty.

The minister said the government was focused on establishing predictable policies, transparent regulatory frameworks and legal certainty to encourage long-term investment in the telecom sector.

She said the Pakistan Telecommunication Authority (PTA), with the support of the Ministry of IT and Telecommunication, had introduced significant regulatory reforms, adding that sustained policy consistency was essential for both the country’s development and for giving international investors the confidence to invest in Pakistan.

Highlighting Pakistan’s market potential, Shaza Fatima said the country had a population of more than 240 million, with a median age of just 22 years, making it one of the youngest and most digitally oriented populations in the world.

She said young Pakistanis viewed digital connectivity as an essential part of daily life, placing greater responsibility on the government to meet their expectations through improved digital infrastructure.

The minister said Pakistan currently had 208 million mobile subscribers, more than 164 million broadband internet subscribers and over 65 million social media users.

She added that broadband internet traffic had increased by 70 per cent over the past five years, reflecting the country’s rapidly growing demand for digital services.

Explaining the reasons behind internet connectivity challenges, Shaza Fatima said broadband demand had expanded by 70pc during the past five years while the telecom sector simultaneously faced severe supply-side constraints.

The minister said that despite the sharp increase in internet demand, Pakistan had not witnessed any significant spectrum auction since the introduction of 3G and 4G licences in 2016-17.

As a result, only 274 MHz of spectrum was available to serve a population exceeding 240 million, creating a major bottleneck for digital connectivity across the country.

She said Pakistan also faced challenges in international fibre connectivity, with three existing submarine fibre systems nearing the end of their operational lives.

However, the government had facilitated the landing of three new submarine fibre-optic cables during the past two years.

She added that although global circumstances had delayed their full activation, these investments would strengthen Pakistan’s digital infrastructure in the future.

Shaza Fatima said the combination of rapidly increasing broadband demand and infrastructure constraints explained the internet experience currently faced by consumers across the country.

The minister said fibreisation was another major area requiring attention.

She said when the Pakistan Muslim League-Nawaz government assumed office in 2024, Pakistan had only around 2 to 3 million fibre-to-the-home connections, including residential, commercial and industrial users.

She said the government revived fibreisation initiatives and accelerated licensing to expand fibre infrastructure.

The Prime Minister personally intervened to remove one of the biggest barriers to investment by directing that the federal government would no longer charge right-of-way fees for laying fibre-optic networks.

Shaza Fatima said the provincial governments also extended full cooperation by issuing notifications within weeks to abolish right-of-way charges on public-sector land, removing a major obstacle to fibre investment across the country.

She noted that while 98pc of Pakistan’s internet users relied on wireless broadband services, the country continued to face spectrum shortages.

She added that telecom tower fibreisation had increased from 14pc to around 20pc but acknowledged that improving internet quality remained a challenge that the government fully understood.