GSMA Pushes for Telecom Tax Cuts to Accelerate Digital Pakistan 2030

Add as a preferredSource on Google The GSMA is conducting an evidence-based assessment to determine whether reducing taxes on Pakistan's telecom sector and low-cost smartphones could accelerate broadband adoption, expand the digital economy and ultimately generate higher government revenues than the current tax regime.

Speaking at the Digital Pakistan 2030: The Next Phase of Digital Transformation media roundtable on Tuesday, Julian Gorman, Head of Asia Pacific at the GSMA, said the study aims to provide policymakers with concrete evidence on how targeted tax reductions could drive smartphone penetration, increase broadband usage and broaden the country's tax base. He was joined by Saira Faisal, Country Lead Digital Transformation, GSMA Pakistan.

According to the GSMA, affordable smartphones remain a key barrier to digital inclusion in Pakistan. The organization is evaluating which taxes could be reduced and how quickly any short-term revenue losses could be offset through increased device sales, higher digital adoption and stronger economic activity.

Gorman noted that governments require evidence-based policymaking, particularly amid fiscal constraints and commitments under the IMF programme. The study is intended to provide practical policy options rather than broad recommendations on tax reforms.

The GSMA reiterated its long-standing research indicating that a 10 percent increase in broadband penetration can contribute between 1 and 2 percent to GDP growth, highlighting the economic benefits of expanding digital connectivity across Pakistan.

The organization also welcomed ongoing digitalization initiatives by federal and provincial governments, saying they encourage smartphone adoption while strengthening tax collection by bringing more individuals and businesses into the formal economy.

The GSMA observed that Pakistan's telecom sector has faced an investment gap due to years of spectrum uncertainty, which slowed network expansion. Following the recent spectrum release, however, mobile operators are expected to invest billions of dollars in expanding broadband coverage and improving network quality over the coming years.

Senior representatives from the federal government, all four provinces, Gilgit-Baltistan, regulators, industry leaders and development partners participated in the GSMA Digital Nation Pakistan Ministerial Roundtable to discuss practical measures for advancing the Digital Pakistan 2030 agenda.

During the event, the GSMA also released its discussion paper, "Digital Pakistan 2030: Building Momentum for Sustainable Investment, Trust and Inclusive Growth," which outlines five strategic priorities: strengthening investment certainty, accelerating digital inclusion, preparing infrastructure for the AI economy, building trusted digital infrastructure and improving national coordination.

The report concludes that sustained collaboration between government, industry and development partners will be essential to maintaining Pakistan's digital momentum, attracting long-term investment and delivering inclusive economic growth through Digital Pakistan 2030.

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