GSMA seeks relief in budget 2025-26

The GSM Association (GSMA), a body of mobile operators, called for a reduction in taxes and fees in the telecommunications industry in the upcoming budget 2025-26.

In a letter to the Federal Minister of IT, Shaza Fatima Khawaja, head of GSMA’s Public Policy and Foreign Affairs for Asia-Pacific, Jeanette Whyte, claimed that the reduction in tax experts would make mobile services more accessible, especially for low-income users.

“A more balanced tax framework would also improve the financial viability of exploitation, allowing them to invest in expanding networks and upgrading to next generation technologies,” GSMA said.

“Our analysis of 2024 data from mobile carriers in Pakistan reveals that the sector has contributed about 42% of its income and fees, 18% of which are derived from specialized categories applied exclusively to the mobile industry.

GSMA is a world organization that unites over 1,200 members of the mobile ecosystem to discover, develop and deliver innovations that are fundamental to positive business environments and social change.

In the last decade, Pakistan’s mobile sector has experienced significant growth, with 4G coverage now reaching 84% of the population.

Mobile technology has offered life -enhancing benefits by promoting economic integration, expanding access to educational resources and allowing business connectivity that contributes to the country’s socio -economic development.

However, the adoption of mobile services remains low, with a 59%gap, the second highest in South Asia. Only 24% of the unique subscribers in Pakistan use the mobile internet, leaving 74% of the non -connected population, including 59% that have access to the mobile internet but do not use it.

Mobile connectivity is a critical driving force for economic growth. According to ITU estimates, a 10% increase in broadband penetration can increase GDP per capita by 2.43%.

In Pakistan, the significant use gap represents a missed financial opportunity. This also affects the exploitation of mobile networks, limiting their revenue potential and, in turn, their ability to maintain quality services, expand coverage and invest in next generation technologies.