The Telecom Operators’ Association (TOA) has welcomed several digital economy-focused measures announced in the Federal Budget 2026-27, while simultaneously calling on the government to reduce the tax burden on mobile services.
In its initial reaction to the budget, the association appreciated steps aimed at supporting digital growth and improving the overall technology ecosystem in Pakistan. However, it emphasized that high taxation on telecom services continues to be a major barrier to affordability, adoption, and sector expansion.
The TOA has specifically urged authorities to reduce advance and withholding taxes imposed on mobile services, arguing that such levies increase the cost of connectivity for consumers and discourage greater usage of digital platforms. According to industry stakeholders, lowering these taxes could help expand internet penetration and improve access to digital services, particularly in lower-income segments.
In addition to mobile tax reductions, the association has called for lower duties on optical fiber infrastructure. Industry representatives believe that easing import and deployment costs for fiber networks would accelerate broadband expansion and strengthen Pakistan’s digital backbone, especially in underserved and rural areas.
Telecom operators also highlighted the need for broader structural reforms to promote investment in the sector. These include regulatory simplification, improved policy consistency, and incentives to encourage long-term infrastructure development.
The telecom industry plays a critical role in Pakistan’s digital economy, supporting millions of users across mobile communication, internet services, fintech platforms, and e-commerce ecosystems. Stakeholders argue that reducing fiscal pressure on the sector is essential for sustaining growth and enabling innovation.
While the Federal Budget 2026-27 includes several measures aimed at digital transformation, industry participants believe that more targeted reforms are necessary to unlock the sector’s full potential. They maintain that a balanced tax structure would not only benefit consumers but also enhance government revenues in the long term through increased usage and investment.
As discussions around budget implementation continue, telecom operators are expected to engage further with policymakers to advocate for a more enabling regulatory and tax environment for Pakistan’s rapidly evolving digital landscape.
