ECONOMIC SURVEY 2025-26: Digital economy grows as IT sector posts gains

Pakistan's information technology and telecommunication sector experienced substantial expansion during the fiscal year 2025-26, according to the Economic Survey 2025-26. Key drivers of this growth included a successful 5G spectrum auction that generated $509.6 million and a significant surge in broadband penetration, which reached 64.2%.

The report highlights sweeping improvements in connectivity across the nation. Cellular mobile services now cover 92% of the population, with 3G and 4G signals extending to over 81% of the country's geographical area. Broadband penetration has nearly doubled since 2019, indicating a substantial increase in digital access.

Further bolstering the sector, telecom revenues reached Rs837 billion. The IT and telecom sector also saw its export remittances climb to $3.38 billion. Notably, 161.6 million mobile handsets were manufactured locally, a result attributed to high import duties, signaling a move towards domestic production within the industry.