Pakistan’s telecom sector posted a 16% year-on-year decline in revenues in FY25, even as subscriber numbers and data usage continued to rise, according to new figures released by the Pakistan Telecommunication Authority (PTA).
Data shared by PTA’s Director General Licensing, Brig (R) Amer Shahzad, shows that industry revenues fell to Rs803 billion in FY25, down from Rs955 billion the previous year, a drop of Rs152 billion. The contraction comes at a time when operators are managing higher operational expenses, elevated taxation, and reduced consumer spending power.
The decline contrasts sharply with continued growth in sector indicators. Telecom users reached 200 million, broadband subscriptions crossed 150 million, and nationwide data consumption hit 27,897 petabytes, according to PTA.
Officials said the mismatch highlights a structural challenge: operators are carrying more traffic and expanding coverage but earning less from each user. Analysts pointed to falling average revenue per user (ARPU), inflation-driven cost pressures, and dollar-linked obligations, including spectrum payments and imported network equipment, as key factors weighing on financial performance.
PTA reported that the industry’s contribution to the national exchequer increased to Rs271 billion in FY25, up from Rs195.1 billion in FY24, largely on account of higher taxes and fees collected from the sector.
Infrastructure expansion continued despite the financial strain. Total cell sites increased to 58,423, while broadband penetration reached 60.8%, reflecting steady network growth even as revenue generation weakened.
Industry representatives cautioned that prolonged financial stress could hinder future investment in capacity enhancement, quality improvements, and 5G readiness. They added that continued revenue compression, driven by reduced voice usage, intense price competition, and multiple taxes on SIMs and mobile usage, could slow the sector’s contribution to digital development.
Stakeholders have called for fiscal relief measures, tax rationalisation, and a longer-term digital policy framework to stabilise sector revenues and ensure sustained investment in Pakistan’s telecom infrastructure.
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