ISLAMABAD: Pakistan is considering targeted tax relief for Internet users in remote areas as part of a proposed National Connectivity Plan aimed at expanding high-speed broadband access to underserved villages and small towns, Economic Affairs Minister Ahad Cheema said on Friday.
The proposal comes as Pakistan seeks to improve digital connectivity beyond major urban centers, where fixed broadband and fiber-optic services remain concentrated, while many rural and remote communities continue to rely on slower or less reliable Internet connections. According to the government, the country has around 2.8 million fiber-to-the-home (FTTH) subscribers, supported by a fiber network spanning 234,000 kilometers, 5.1 million premises passed and six operational submarine cables.
Successive governments have invested in extending broadband to underserved areas through the Universal Service Fund, which finances telecom infrastructure in commercially unviable regions. Last year, the fund approved projects worth billions of rupees to expand high-speed Internet and mobile connectivity across remote districts, reflecting the persistent digital divide between urban and rural Pakistan.
“In a key decision aimed at supporting consumers, participants considered targeted tax relief for Internet users in remote areas to expand digital participation,” Cheema said after a meeting on the proposed National Connectivity Plan, according to a government statement.
The plan also proposes abolishing right-of-way fees for telecom infrastructure, creating a single-window approval portal, introducing district-level licensing and requiring fixed broadband connectivity at public institutions including schools and health facilities. Officials said the government intends to finalize the plan after consultations with stakeholders.
The government has set targets of expanding fiber infrastructure to 10 million premises, increasing average fixed broadband download speeds to 85 Mbps, raising tower fiberization to 60 percent and placing Pakistan among the world’s top 50 countries for broadband performance, according to the statement.
Pakistan has identified digital infrastructure as a key driver of economic growth as it seeks to expand its freelance workforce, e-commerce sector and digital services exports. The country has also been preparing for the rollout of 5G services, though industry officials have repeatedly said wider fiber deployment and regulatory reforms will be critical to improving Internet quality nationwide.
