Under the approved framework, the spectrum fee has been denominated in US dollars, but the exchange rate will be calculated at the National Bank of Pakistan’s TT selling rate prevailing at the close of business on the day preceding the auction date. At least 50% of the spectrum price will be payable within one year of the licence issuance date, while the remaining 50% will be paid in five equal annual instalments carrying interest at the KIBOR offer rate plus three percentage points.
The directive also revises the benchmark used for deferred payments. Unlike the 2021-era policy that linked instalments to the London Interbank Offered Rate, the current framework shifts to a domestic interest rate structure, a change sought by operators amid global rate volatility. Each new spectrum licence will be valid for a period of 15 years.
According to the policy, the PTA will auction multiple frequency bands, including 15 MHz of paired spectrum in the 700 MHz band, 3.6 MHz paired in the 1800 MHz band, 20 MHz paired in the 2100 MHz band, and unpaired spectrum of 50 MHz in the 2300 MHz band, 190 MHz in the 2600 MHz band, and 280 MHz in the 3500 MHz band. Base prices range from $6.5 million per MHz for paired 700 MHz spectrum to $0.65 million per MHz for unpaired 3500 MHz spectrum.
At the same time, the IT ministry has sought federal measures, in consultation with stakeholders, to address industry concerns. It proposed tax reductions to promote local manufacturing of 5G smartphones and duty-free imports of 5G equipment to accelerate adoption. The ministry also recommended industrial power tariffs for telecom operators through a joint task force.