Pakistan squandered $6B revenue as internet crisis continues, says telecom regulator chief

Pakistan's telecommunications regulator revealed Tuesday that despite collecting $6 billion in revenue over six years, the government has made no investment in the country's struggling telecom infrastructure, leading to widespread internet disruptions.

"Not a single rupee has been invested in the telecom sector for several years," Pakistan Telecommunication Authority (PTA) Chairman Major General (retd) Hafeezur Rehman told a parliamentary committee, contrasting Pakistan's approach with neighboring India's $13 billion investment in telecommunications infrastructure.

The revelation comes as Pakistan grapples with internet connectivity issues that led some technology companies to illegally adopt Elon Musk's Starlink satellite internet service last month, despite lacking regulatory approval.

Rehman told lawmakers that both Starlink and its Chinese competitor, Shanghai Spacecom Satellite Technology (SSST), have completed 90% of their regulatory requirements and could receive operating licenses within six months. This marks the first official timeline for the licensing process since Starlink's initial application in February 2022.

The regulator emphasized that Pakistan's internet problems stem from inadequate fiber optic infrastructure. While India has laid 3.5 million kilometers of fiber optic cable, Pakistan lags far behind, with the government only now working on its first "fiberization policy."

"If you don't build good highways, how will cars run?" Rehman said, using an analogy to explain how the lack of basic infrastructure affects internet service quality. He added that for backward areas, development would come under the Universal Service Fund.

Efforts to address infrastructure gaps

Standing Committee Chairman Syed Aminul Haque announced plans to seek Prime Minister's intervention for immediate funding of fiber optic infrastructure, signaling growing political pressure to address the crisis.

The infrastructure gap has become increasingly apparent as internet usage in Pakistan grew by 25% in 2024, with the country's submarine cable capacity of 9.5 terabits per second proving insufficient for current demands.

Last month, Minister of State for IT Shaza Fatima Khawaja announced plans to double mobile spectrum capacity from 274 MHz to 550 MHz, but experts argue that without proper fiber optic infrastructure, such improvements may have limited impact.