Pakistan’s plans to accelerate fiber deployment and expand next-generation 5G services could face delays after the government withdrew the Pakistan Telecommunication (Reorganization) (Amendment) Bill, 2026, which was intended to address long-standing issues surrounding Right of Way charges and approvals.

The proposed legislation was designed to reduce financial and administrative barriers faced by telecom operators while laying optical fiber cable, or OFC, across the country. Fibre infrastructure is considered essential for improving broadband quality and ensuring that recently auctioned spectrum can be used effectively.

With the bill now withdrawn and fresh legislation expected, uncertainty over RoW charges and approval procedures may continue at a time when telecom companies are under pressure to expand fiber networks, improve service quality, and prepare infrastructure for wider 5G deployment.

Minister for Information Technology and Telecommunication Shaza Fatima Khawaja had earlier said the proposed amendment would provide a legal framework for rationalizing RoW fees and reduce both the cost and time involved in fiber deployment.

According to the minister, lower RoW charges could help operators expand network coverage more rapidly, improve broadband affordability, and extend high-speed connectivity to remote and underserved areas.

Fiberization Remains Critical for 5G

The government has linked RoW reforms directly with its broader 5G strategy.

Pakistan auctioned an additional 480 MHz of spectrum in March 2026, taking the country’s total available spectrum to 754 MHz. The additional spectrum is expected to support higher network capacity and next-generation mobile services.

However, spectrum availability alone may not be enough to deliver the full benefits of 5G. Modern mobile networks require extensive fiber links between cellular sites and the wider telecom backbone, making faster OFC deployment a key part of network expansion.

High RoW charges, delays in approvals and varying procedures across authorities can increase deployment costs and slow infrastructure projects. The government had hoped the proposed reforms would create a more predictable regulatory environment and encourage greater private-sector investment.

The economic implications are also significant. Citing World Bank estimates, the IT minister said every 10 percent increase in broadband penetration could contribute between 0.9 percent and 2 percent to GDP growth, potentially adding nearly $30 billion to Pakistan’s economy over five years.

She also cited research suggesting that a 10 percent rise in broadband access could increase employment by between 3.1 per cent and 13.2 per cent, potentially creating more than two million jobs.

Attention will now turn to the replacement legislation and whether it preserves the original objective of rationalizing RoW charges while addressing concerns surrounding the withdrawn bill.

Any prolonged delay could slow fiber deployment at a time when telecom operators are preparing to make greater use of newly acquired spectrum, potentially affecting broadband quality, network expansion, and the pace of 5G rollout across the country.