Pakistan Has Highest Mobile Sector Tax in the Region: GSMA Report

ISLAMABAD – The GSM Association (GSMA) has released a report highlighting that Pakistan imposes the highest tax on the mobile sector in the region, with a staggering 33% tax burden.
The report was unveiled during the second Digital Nation Summit held in Islamabad. It revealed that although 68% of Pakistanis own smartphones, only 29% use mobile internet, pointing to a significant gap in digital adoption.
According to the GSMA, Pakistan has a 52% mobile internet usage gap — the largest in the region. High spectrum prices and regulatory barriers are key challenges obstructing better connectivity.
The report noted an encouraging increase in mobile internet usage among women, rising from 33% to 45%. However, it stressed the urgent need for financial and spectrum reforms to unlock the sector’s potential.
Pakistan has recently seen an increase of 10 million new broadband users and a 24% surge in internet usage. The report also highlighted ongoing work on 40 software parks, AI data centers, and 17 telecom projects.
GSMA concluded that with the right reforms, Pakistan has the potential to become a regional leader in 5G, artificial intelligence (AI), and the Internet of Things (IoT).