$3 billion in losses are anticipated as a result of this year's lack of 5G auctions.

The lack of a 5G network auction until December of this year will cost Pakistan between $2 and $3 billion, according to sources in the Ministry of IT and Telecom.

ProPakistani was informed by insiders that the Ministry of IT and Telecom was prepared for the auction and that all necessary arrangements had been made.

The frequency bands were also freed up for the 5G network, and the Ministry had acquired the necessary equipment. A 5G strategy plan and set of policy directives were also released by the Ministry of IT and Telecommunication last year. In January 2022, the previous administration established a powerful committee to approve the 5G Strategic Plan and manage the release of the next technologies and spectrum auction.

Sources suggest that it was suggested that the high-level committee make recommendations for incentives that would be included in the Finance Bill 2022. The committee meeting could not be held during the previous government due to the political climate in the nation, so the current administration reconstituted the committee. However, the federal government has now chosen to once more put an additional 3G/4G spectrum up for auction. Political unrest in the nation and the previous administration's increase in telecom levies have both had an impact on 5G auction procedures.

According to the telecom industry, taxes on the telecom sector were increased in the previous government’s mini-budget. The advance income tax was increased from 10 percent to 15 percent in the supplementary finance bill without consultation with the industry. The telecom industry had told the government in its recommendations that the launch of 5G is not possible in the presence of such a heavy tax. Even the Ministry of IT and Telecom and PTA demanded the government reduce taxes on the telecom sector.

On August 1, India's neighbor held a 5G auction that will bring in Rs 1.3 trillion for the government coffers. The rollout of 5G is also being prepared for and tested in Bangladesh and Nepal. The 5G network currently has around 1.2 billion users, and by the end of 2022, 2.5 billion users are anticipated to be utilising it globally.