The Telecom Operators’ Association (TOA) has welcomed the Federal Budget 2026-27, praising the government’s efforts to maintain economic stability while introducing measures aimed at supporting Pakistan’s digital economy and telecommunications sector.

In a statement issued on Monday, the association said the budget reflects the government’s recognition of digital connectivity as a key driver of economic growth and technological advancement.

TOA particularly appreciated the government’s proposal to reduce customs duties on raw materials used in the local manufacturing of mobile handsets, subject to approval through the Finance Bill. According to the association, the move is expected to improve smartphone affordability, boost digital inclusion, and accelerate connectivity across the country.

The telecom industry body also welcomed the rationalization of the super tax, describing it as a positive step toward improving the investment climate and encouraging further growth within Pakistan’s digital ecosystem.

While welcoming the budget measures, TOA expressed hope that policymakers would consider additional industry proposals aimed at making telecom services more affordable and accessible.

The association has called for the rationalization of advance and withholding taxes imposed on telecom services and mobile users. It argued that such reforms would reduce the financial burden on consumers, encourage digital adoption, and attract greater investment into the sector.

TOA noted that Pakistan currently has around 206 million mobile subscribers but only 7.7 million active taxpayers, meaning a large portion of mobile users cannot effectively reclaim taxes deducted from their telecom usage.

The association also emphasized the need for policies that support long-term digital infrastructure development, particularly broadband expansion and fiber network deployment.

According to TOA, reducing duties on optical fiber infrastructure would help telecom operators expand broadband services, improve connectivity, and prepare the country for future technological requirements.

The organization further called for reforms that promote tax certainty, reduce administrative discretion, and improve the overall ease of doing business, creating a stronger environment for investment and innovation.

TOA highlighted the telecom sector’s importance as the foundation of Pakistan’s digital economy, enabling services across financial inclusion, education, healthcare, e-commerce, agriculture, manufacturing, and public service delivery.

The association stressed that sustained investment in telecom infrastructure is essential for enhancing economic competitiveness and supporting emerging technologies.

Commenting on the budget, Kamal Ahmed, Secretary General of TOA, said telecom serves as an enabling industry that powers digital transformation across multiple sectors of the economy.

He stated that policies promoting affordability, infrastructure investment, and network expansion generate benefits that extend far beyond the telecom sector, contributing to innovation, productivity, and economic growth.

Separately, TOA welcomed the government’s recent decision to make Right of Way (RoW) for telecom infrastructure free of charge.

The association described the move as a major reform that addresses a longstanding industry concern. It believes the policy will reduce network deployment costs, accelerate broadband expansion, improve connectivity, and support faster infrastructure rollout throughout Pakistan.

TOA reiterated its commitment to working closely with the government and other stakeholders to advance Pakistan’s digital transformation agenda and promote inclusive digital growth across the country.