Overview

Pakistan’s telecommunications industry has seen some growth lately, owing to the growing demand for reasonable telecom services. The country has witnessed an extensive expansion of mobile and broadband networks, and the government has taken significant steps to improve infrastructure and encourage competition. In the last few years, the industry has shown notable growth on the back of an uptick in e-commerce which increased the demand for connectivity, particularly during and after the COVID-19 pandemic. This opportunity helped develop infrastructure and network for the industry, however, policy and operational challenges have driven low investment into this sector.

Four cellular companies are operating in Pakistan with a customer base of more than 195 million subscribers compared to 188 million last year. The private sector is expanding and developing telecommunication services, including cellular phones, card payphones, internet/broadband, and fixed-line telephones in Pakistan.

Telecom Infrastructure

Pakistan’s telecommunications infrastructure includes Microwave radio relay, coaxial cable, fiber-optic cable, cellular, and satellite networks. There are ten international submarine cable systems connecting Pakistan, including SMW3, SMW4, SMW5, IMEWE, AAE-1, TW1, PEACE, 2AFRICA, and AFRICA1 that provide links to Asia, the Middle East, Europe, and Africa.

Teledensity

By the end of FY23, Pakistan’s tele density had slightly decreased to 83.2 percent from 85 percent in FY22, with the cellular mobile segment being the main contributor to access.

Telecommunication Equipment

The present market size for the import of telecommunication equipment (including handsets) is estimated at approximately $700 million. Chinese telecom infrastructure providers like ZTE and Huawei have established branches in Pakistan and are engaged in the design, development, installation, configuration, and maintenance of telecom installations.  Other vendors of telecom equipment and services in Pakistan include Advance Digital, Inc., GD Satcom, iDirect, Comtech EF Data Corp., NEC Corporation, Conexant Systems, Agere Systems, and Emerson Process.AnchorAnchorAnchorAnchorAnchorAnchorAnchorAnchorAnchorAnchorAnchor

Leading Sub-Sectors

Telecom switchesRadio communication linksFiber optic cablesTowers, poles, ducts, and pits used in conjunction with other infrastructure facilitiesTower-sharing servicesBroadband servicesBack-up power for telecommunication towers

Opportunities

Pakistan has implemented an open-source Device Identification, Registration, and Blocking System (DIRBS) to address the negative effects of the grey market for mobile devices. The successful implementation of DIRBS has led to increased legal imports and local manufacturing of mobile devices. The government’s commitment to promoting local manufacturing and attracting foreign companies to establish their plants in Pakistan ensures a level playing field for all stakeholders in the mobile industry.

Resources

Pakistan Telecommunication Authority

Pakistan Telecommunication Company Limited