Pakistan’s IT ministry has issued directives to the telecom regulator for auction of next-generation spectrum, targeting at least $630.4 million in non-tax revenue.

The Ministry of Information Technology and Telecommunication has issued a policy directive to the Pakistan Telecommunication Authority aimed at proceeding with the country’s largest-ever mobile spectrum auction. It covers multiple low, mid, and high frequency bands critical for advanced services.

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Ministry of Information Technology and Telecommunication said the auction will include spectrum in the 700, 1800, 2100, 2300, 2600 and 3500 MHz bands. It marks the most expansive release of mobile airwaves in Pakistan’s telecom history.

The government has tasked Pakistan Telecommunication Authority to conduct the process under a technology-neutral framework which allows operators to deploy any mobile generation, including 5G, within existing licensing rules.

According to the directive, during the auction, the regulator will offer 15 MHz of paired spectrum in the 700 MHz band, 3.6 MHz paired in 1800 MHz, 20 MHz paired in 2100 MHz, 50 MHz unpaired in 2300 MHz, 190 MHz unpaired in 2600 MHz, and 280 MHz unpaired spectrum in the 3500 MHz band. The 3500 MHz range is widely considered to be the backbone band for 5G deployment globally.

The government has fixed base prices in US dollars. The 700 MHz band has been priced at $6.5 million per MHz, while the price of paired spectrum in the 1800 and 2100 MHz bands has been set at $14 million per MHz.

The government has set the price of Unpaired spectrum at $1 million per MHz in 2300 MHz, $1.25 million per MHz in 2600 MHz, and $0.65 million per MHz in the 3500 MHz band.

The telecom operators will pay in Pakistani rupees using the State Bank of Pakistan’s prevailing exchange rate on the payment date, according to the policy.

The both existing cellular mobile operators and new entrants are eligible to participate, subject to spectrum caps designed to prevent excessive concentration.

The government has also approved a one-year payment moratorium from the date of license award to ease financial stress on the telecom operators. Telecom operators have been allowed to choose paying the full amount by the first anniversary or opt for a deferred payment structure.

Under the installment option, at least 50% of the total spectrum fee must be paid by the first anniversary. The telecom operators can pay remaining 50% in five equal annual installments starting from the second year. The government has imposed an annual surcharge on unpaid balance calculated at KIBOR plus 3%.

Interest on the first installment will be based on the one-year KIBOR rate prevailing on the license issuance date. The subsequent installments will be paid at the KIBOR rate applicable at the previous year’s payment date.

Licensees may opt to clear the outstanding balance at any time within five years without penalty, However, interest will continue to apply until full payment.

Each spectrum license will be valid for 15 years. It also allows spectrum trading or sharing in line with PTA regulations. The policy also requires a phased rollout of next-generation mobile networks aimed at improving service quality and coverage, particularly for high-speed data services.

The Ministry of Information Technology and Telecommunication said the auction framework is aimed at balancing fiscal objectives with industry sustainability, as operators face high energy costs, currency depreciation, and rising network investment requirements.