Govt sets two-month timeline for spectrum auction

• IT minister says process to improve 3G and 4G services, pave way for 5G launch
• Claims 245m Pakistanis ‘making do’ with 274MHz, compared to 600MHz available in Bangladesh
• ECC approves over $7m bailout package for PIA-IL to discharge $4m tax liability

ISLAMABAD: The government on Tuesday approved the process for the auction of 600 megahertz (MHz) spectrum within two months, followed by the rollout of 5G internet in five to six months, on the recommendation of a US-based consultancy firm.

The decision was made at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which also approved a Rs20bn (more than $7m) bailout package for Pakistan International Airlines Investment Limited (PIA-IL) to discharge $4m tax liability against Roosevelt Hotel, New York, and other domestic loan liabilities.

Speaking at a no-questions-asked recorded statement, Finance Minister Muhammad Aurangzeb and Information Technology Minister Shaza Fatima Khwaja said the new spectrum auction, to be completed by early February, would be ten times larger than the 60MHz auctioned over all past auctions put together because internet congestion was a major constraint to the nation’s digitisation transformation.

The finance minister said recommendations for the spectrum auction were prepared by National Economic Research Associates (NERA), based on experiences in recent spectrum auctions in other countries, including process, pricing mechanism, auction and implementation strategies. He said the success of digitisation, digital inclusion and financial inclusion was linked to faster, cheaper and better processes, and unsold spectrum was directly translating into economic losses.

IT Minister Shaza Fatima said that under the ECC decision, the Pakistan Telecommunication Authority (PTA) would complete all spectrum auctions by the end of January or early February because Pakistan was behind regional competitors due to the unavailability of spectrum capacity.

She said Pakistan’s 245m population had access to only 274MHz spectrum compared to 600MHz available to the 175m people of Bangladesh. That was the major reason for internet traffic congestion in Pakistan, she said, adding, “This means we are using two lanes for traffic which requires eight lanes…your internet does not work and you face challenges.”

She said the upcoming auction would not only improve 3G and 4G services but also enable the launch of 5G, and more international operators would enter the country. The operators would be obligated, under the terms of the auction, to roll out all spectrums within four to six months, so that service improvements become visible to the people in five to six months and to be followed by 5G rollout in six months.

Ms Khwaja said the internet was a basic ingredient to the government’s digitisation efforts, for which the Digital Nation Pakistan Act 2025 had already been put in place. According to Connect 2030, to be inaugurated by the prime minister soon, the government would ensure that over the next five years, the minimum connectivity available to users should be 100 Mbps.

Under the decision, Pakistan would now be offering 606MHz of new spectrum across six major bands, including 700MHz, 1800MHz, 2100MHz, 2300MHz and new bands 2600MHz and 3500MHz. The 2600 and 3500MHz band are considered conducive to 5G.

PIA bailout

The ECC also approved about Rs20bn (about $7m) bailout to PIA-IL against $17.5m demanded by the Defence Division to meet tax liabilities of Roosevelt Hotel due on January 1, 2026.

In October, the Ministry of Defence sought around $17.5 million to meet urgent liabilities at the Manhattan property, which could require up to $20m to restart operations pending a joint-venture arrangement through the Privatisation Commission. The hotel’s $200m lease with New York City, under which it housed migrants, was terminated earlier this year.

The ECC had directed PIA-IL and the ministry to hold separate deliberations with the Ministry of Finance to rationalise their demand, which appeared exaggerated to the committee members. These meetings led to the identification of $4m tax payable by the end of the current month to avoid any adverse action in the United States.

In addition, the company was also in default in debt servicing to the National Bank of Pakistan, for which another $3.5m equivalent of rupee cover was approved for settlements and rollovers.

Published in Dawn, December 24th, 2025

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