Dollar pricing, high upfront costs could deter bids for Pakistan’s 5G auction — Jazz CEO

Dollar pricing, high upfront costs could deter bids for Pakistan’s 5G auction — Jazz CEO
Aamir Ibrahim, the CEO of Jazz, Pakistan’s largest telecom company, speaks during an interview with Arab News in Karachi on February 14, 2025. (AN photo)
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Updated 17 February 2025
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Dollar pricing, high upfront costs could deter bids for Pakistan’s 5G auction — Jazz CEO

Dollar pricing, high upfront costs could deter bids for Pakistan’s 5G auction — Jazz CEO
  • In interview with Arab News, Aamir Ibrahim calls on government to price 5G spectrum in rupees instead of US dollars
  • Says delay in approval of PTCL-Telenor merger, legal disputes over spectrum allocation also worrying investors

KARACHI: Aamir Ibrahim, the CEO of Jazz, Pakistan’s largest telecom company, has warned that cellphone operators could opt out of participating in a planned 5G spectrum auction if the government set high upfront prices and priced in US dollars over rupees, arguing that such a model would make little business sense for market players.

The South Asian country of 240 million people hopes to use the auction as a way to boost the economy and promote advanced telecoms technology among its over 165 million mobile phone users. According to a recent report by the Global System for Mobile Communications Association (GSMA), 5G could contribute over $1.5 billion to Pakistan’s GDP by 2030, and also improve connectivity, service quality, and innovation in agriculture, manufacturing, logistics, education, and health care. 

However, the National Economic Research Associates (NERA), a US-based consultancy hired by the Pakistan Telecommunication Authority (PTA) last year to oversee the 5G spectrum action, has identified major obstacles that could delay the rollout, which was planned for mid-2025. These include administrative restrictions on Internet services, low utilization of existing spectrum, auctioning the 5G spectrum in foreign instead of local currency, a delay in the Competition Commission of Pakistan’s (CCP) decision on the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) and litigation over spectrum availability in the 2.6 GHz band.

Speaking to Arab News in an interview last week, Ibrahim said Jazz, Pakistan’s leading digital service provider with around 71 million subscribers, had held discussions with the government on the structure of 5G licensing, which needed to be “investor-friendly and consumer-beneficial.”

“Some of the key recommendations have been that we have to delink the price of the spectrum from dollars to rupees and the reason for that is that we earn our revenues in rupees. So, we can’t really have a huge cost impact on dollars, which we can’t necessarily predict,” Ibrahim said.

Indeed, Pakistani telecom operators face a currency mismatch, as they charge customers in rupees but pay hefty regulatory fees — including license renewals and spectrum costs — in US dollars.

This exposes them to exchange rate volatility, making long-term financial planning difficult, especially as the rupee has sharply depreciated in recent years.

Ibrahim said Jazz had also sought “relief” from the government regarding payment terms, including the upfront component of the auction and the duration of the payment cycle, saying buyers of the 5G spectrum would need to invest up to $1 billion over time to import compatible equipment and upgrade their networks.

“There are less than two percent of all of our customers in Pakistan who have a 5G-compatible phone, and that’s why it’s important that the whole pricing mechanism of 5G has to be commensurate with the business potential,” the Jazz CEO said. 

Ultimately, he said, higher prices upfront or initially would make a “weak business case”:

“And the operators may not be interested in participating in the auction, which again will not be beneficial for the government.”

The Jazz CEO said his company has conveyed these concerns as part of its recommendations to the government, and that they had resonated with NERA’s recommendations on what “we as an industry have been asking the government.”

He agreed that a main concern for investors was also the delay in the approval of PTCL’s acquisition of Telenor Pakistan, which has been awaiting clearance from the Competition Commission.

“It has taken quite a long time … it’s not a good signal for a foreign investor if a merger approval process takes more than 14 months,” Ibrahim said, adding that the prolonged delay was creating uncertainty, discouraging investment and making Pakistan’s telecom sector appear less business-friendly.

Additionally, the delay was affecting strategic planning for telecom operators, particularly in terms of competition and resource allocation.

“Because then we don’t necessarily know whether the spectrum is going to be made available for four players or for three players. So, that’s a requisite that I think has to be addressed before we move forward with the 5G auction.”

The 5G rollout has also been delayed due to ongoing legal disputes over spectrum allocation. A portion of the 2.6 GHz frequency band — essential for 5G deployment — remains tied up in litigation, leaving insufficient spectrum for optimal performance.

Last year, the Islamabad High Court ruled against China Mobile Pakistan Limited (Zong) for unauthorized use of the additional spectrum beyond its license period, further complicating the regulatory landscape.

Asked about the litigation, Ibrahim alleged that one operator had “illegally occupied the spectrum for a very long time,” without naming the company.

“We want all operators to comply with the same rules and regulations that exist for others,” he said, adding that whether it was 50 MHz or 68 MHz, the spectrum must be released.

He stressed that Pakistan ideally needed 100 MHz slots per operator, but spectrum constraints and subdued pent-up demand had hindered expansion.

“The 2,600 MHz band is a very desirable spectrum that should be released before the 5G auction,” Ibrahim said. “A couple of things certainly appear to be roadblocks, and I hope these roadblocks are taken out of the way very quickly.”

Commenting on the timeline for the rollout of 5G services in Pakistan, the Jazz CEO admitted it would not happen “overnight.”

“It will take a while before the rollout starts, it’s not going to be the case that one day somebody buys 5G spectrum and the next day they switch it on and the whole country is lit up,” he said. 

“It takes a while to plan for the network, import the equipment, upgrade the equipment and start deploying the services. And you go pocket by pocket, city by city. So, it takes a while, but I think the journey can start within a few months of the auction results being concluded.”


Pakistan, Russia activate anti-terrorism dialogue to counter security concerns

Pakistan, Russia activate anti-terrorism dialogue to counter security concerns
Updated 13 sec ago
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Pakistan, Russia activate anti-terrorism dialogue to counter security concerns

Pakistan, Russia activate anti-terrorism dialogue to counter security concerns
  • Both nations have been targeted by armed militant networks and tried to deal with the threat
  • Russia has also invited Pakistani officials to participate in its anti-narcotics training programs

ISLAMABAD: Pakistan and Russia agreed to activate their bilateral anti-terrorism dialogue during a meeting between Interior Minister Mohsin Naqvi and Russian Ambassador Albert P. Khorev on Tuesday, according to an official statement from the interior ministry.

Both nations have been grappling with threats from armed militant groups. Pakistan has complained of “cross-border” attacks by the banned Tehreek-e-Taliban Pakistan (TTP) originating from Afghanistan, allegations denied by Kabul’s interim Taliban administration.

The country has also been targeted by ethnic Baloch separatists, who accuse the state of exploiting Balochistan’s rich mineral resources without benefiting local communities. The Pakistani government, however, says it has launched several development projects in the region to improve the quality of life for its residents.

Russia has also faced terrorism on its soil. On March 22, 2024, a deadly attack occurred at the Crocus City Hall concert venue near Moscow, killing over 140 people and injuring many others. The attack, claimed by Daesh militants, was one of the deadliest in Russia in recent years.

“Terrorism is an international challenge, and only through multifaceted joint efforts can this menace be controlled,” Naqvi said, according to his ministry’s statement.

During the meeting, both sides discussed enhancing cooperation in counter-terrorism and anti-narcotics efforts.

They agreed to increase mutual exchanges of delegations to strengthen collaboration further.

Russian Ambassador Khorev also extended an invitation for Pakistani officers to participate in anti-narcotics training programs in Moscow and Siberia.

“We will promote mutual contacts to further strengthen relations with Russia,” Naqvi said, emphasizing the broad opportunities for bilateral cooperation across various sectors.


Rain washes out Champions Trophy match between South Africa and Australia in Rawalpindi

Rain washes out Champions Trophy match between South Africa and Australia in Rawalpindi
Updated 33 min 8 sec ago
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Rain washes out Champions Trophy match between South Africa and Australia in Rawalpindi

Rain washes out Champions Trophy match between South Africa and Australia in Rawalpindi
  • The pitch remained under covers at the Rawalpindi Cricket Stadium throughout the day because of a persistent light drizzle
  • Both unbeaten teams go into their last Group B game with a chance to qualify for semifinals with three points already secured

RAWALPINDI: Rain washed out the Champions Trophy game between South Africa and two-time winner Australia on Tuesday without a ball being bowled.
The pitch remained under covers at the Rawalpindi Cricket Stadium throughout the day because of a persistent light drizzle before umpires called off the game shortly after 5 p.m. local time.
Both unbeaten teams go into their last Group B game with a chance to qualify for the semifinals with three points already secured. Australia plays against Afghanistan at Lahore on Friday while South Africa meets England at Karachi on Saturday.
South Africa and Australia began their campaigns by posting 300-plus scores against Afghanistan and England, respectively.
Australia, coming into the Champions Trophy without three frontline fast bowlers, made the tournament’s highest-ever chase of 352 on the back of Josh Inglis’ century against England at Lahore.
South Africa registered an emphatic 107-run win over Afghanistan at Karachi after Ryan Rickelton made his maiden ODI hundred in a strong total of 315-6.
New Zealand and India have already qualified for the semifinals after winning both their Group A games against Pakistan and Afghanistan.
England will take on Afghanistan in a must-win game for both teams to stay in semifinal contention in Lahore on Wednesday.


Pakistani PM arrives in Uzbekistan on Central Asia economic diplomacy tour

Pakistani PM arrives in Uzbekistan on Central Asia economic diplomacy tour
Updated 58 min 42 sec ago
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Pakistani PM arrives in Uzbekistan on Central Asia economic diplomacy tour

Pakistani PM arrives in Uzbekistan on Central Asia economic diplomacy tour
  • Sharif’s visit will focus on strengthening connectivity, bilateral cooperation in trade, energy and defense sectors
  • Pakistan is seeking to leverage strategic position to become key trade and transit hub for landlocked Central Asia

ISLAMABAD: Prime Minister Shehbaz Sharif arrived in Uzbekistan on Monday for talks on trade, energy and defense ties as part of an economic diplomacy push to enhance investment with landlocked Central Asia.

Sharif’s trip to Tashkent follows a two-day visit to Baku during which Pakistan and Azerbaijan signed multiple agreements to enhance cooperation in the trade, energy, tourism and education sectors.

Pakistan is seeking to leverage its strategic position as a key trade and transit hub to connect the landlocked Central Asian republics to the global market. Since last year, there has been a surge in visits, investment talks and other economic activity between Pakistan and the Central Asia states. 

“Foreign minister of Uzbekistan Bakhtiyor Saidov received Prime Minister Shehbaz Sharif upon his arrival at Tashkent airport,” the premier’s office said in a statement. 

Pakistan and Uzbekistan are expected to sign a number of agreements during the visit, the Pakistani foreign office said on Monday. 

“Prime Minister of Pakistan and President of Uzbekistan, during bilateral meeting, would discuss all areas of bilateral cooperation including connectivity, economic, trade, investment, energy, defense and security, regional stability, and education,” the foreign office added. “The leaders would also exchange views on regional and international issues of mutual interest.”

The statement added that the visit highlighted Pakistan’s commitment to strengthen ties with Uzbekistan “through fostering greater economic collaboration and exploring new avenues of partnership, as part of the strategic vision for regional integration and economic prosperity.”

During the visit, Sharif will also address the Pakistan-Uzbekistan Business Forum in which leading businessmen from both sides will participate and hold business-to-business meetings. 

Uzbekistan is the largest consumer market and second biggest economy in Central Asia. It was the first Central Asian country with which Pakistan signed a bilateral Transit Trade Agreement (UPTTA) and a Preferential Trade Agreement (PTA) on 17 items.

In February 2023, Pakistan and Uzbekistan signed a $1 billion deal to boost bilateral trade, aiming to promote the exchange of goods and services. Last month, Uzbek Ambassador to Pakistan Alisher Tukhtaev also announced plans to launch direct flights from Uzbekistan to the southern Pakistani port city of Karachi.


Pakistan, Iran sign agreement to take bilateral trade volume to $10 billion

Pakistan, Iran sign agreement to take bilateral trade volume to $10 billion
Updated 25 February 2025
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Pakistan, Iran sign agreement to take bilateral trade volume to $10 billion

Pakistan, Iran sign agreement to take bilateral trade volume to $10 billion
  • The development comes amid Pakistan’s efforts to increase trade as it treads a tricky path to economic recovery
  • The volume of bilateral trade between Pakistan and Iran reached $2.8 billion in the last fiscal year that ended in June

ISLAMABAD: Pakistan and Iran have signed a memorandum of understanding (MoU) aimed at taking bilateral trade volume to $10 billion, Pakistani state media reported on Tuesday.
The development comes amid Pakistan’s efforts to increase trade and investment as it treads a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program, secured in September.
The volume of bilateral trade between Pakistan and Iran reached $2.8 billion in the last fiscal year that ended in June, the state-run Radio Pakistan broadcaster reported.
“The MoU was signed during a high-level meeting between the Federation of Pakistan Chambers of Commerce and Industry and Iran’s Mashhad Chamber of Commerce and Industry,” the report read.
“During the meeting, Iran also assured Pakistan of reducing business visa fees and facilitating trade activities.”
Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.
Iran’s late president Ebrahim Raisi toured Pakistan in April 2024 as both countries sought to mend ties after unprecedented tit-for-tat military strikes.
During Raisi’s three-day visit, the two governments signed MoUs and agreements covering different fields including trade, science and technology, agriculture, health, culture and judicial matters.
Raisi had said that the volume of trade between the two countries was “not acceptable at all” and that they should enhance bilateral trade to $10 billion.


Bangladesh and Pakistan begin direct government-to-government trade

Bangladesh and Pakistan begin direct government-to-government trade
Updated 25 February 2025
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Bangladesh and Pakistan begin direct government-to-government trade

Bangladesh and Pakistan begin direct government-to-government trade
  • Senior food ministry official says Bangladesh is importing 50,000 tons of rice from Pakistan
  • Private Bangladeshi companies have imported Pakistani rice for years via countries like Sri Lanka

DHAKA: Bangladesh and Pakistan have started direct government-to-government trade after decades of troubled relations with imports of 50,000 tons of rice, Dhaka said Tuesday.
The two countries were once one nation but split in a brutal 1971 war, with Bangladesh drawing closer to India.
However, long-time Bangladeshi prime minister Sheikh Hasina was ousted in an August 2024 revolution, fleeing by helicopter to her old ally India, where she has defied extradition requests to face charges of crimes against humanity.
Relations between India and Bangladesh’s new government have been frosty since then, allowing Islamabad and Dhaka to rebuild ties slowly.
Direct private trade between the countries restarted in November 2024, when a container ship sailed from Pakistan’s Karachi to Bangladesh’s Chittagong.
It was the first cargo ship in decades to sail directly between the countries.
“For the first time we are importing 50,000 tons of rice from Pakistan, and it is the first government-to-government deal between the two countries,” Ziauddin Ahmed, a senior official at the food ministry in Dhaka, said Tuesday.
Bangladesh’s Directorate General of Food signed a memorandum of understanding with the state-owned Trading Corporation of Pakistan (TCP) in January for rice imports.
Ahmed said trade with Pakistan offers a “new avenue of sourcing and competitive pricing,” with state authorities in recent years importing the staple from India, Thailand and Vietnam.
Imports are critical to low-lying Bangladesh, a nation that is among the world’s most vulnerable to climate change, with large areas made up of deltas where the Ganges and the Brahmaputra rivers wind toward the sea.
The country of 170 million is particularly at risk of devastating floods and cyclones — disasters that only stand to accelerate as the planet keeps warming.
Private Bangladeshi companies have imported Pakistani rice for years, but Pakistani goods previously had to be off-loaded onto feeder vessels — usually in Sri Lanka, Malaysia or Singapore — before traveling on.
India and Pakistan — carved out of the subcontinent at the chaotic end of British colonial rule in 1947 — have fought multiple wars and remain bitter foes.
Meanwhile, China is wooing Bangladesh’s leaders, with members of the powerful Bangladesh National Party (BNP) on a visit to Beijing, the latest group offered a tour after trips by members of the Jamaat-e-Islami and other Islamist parties.
India has long been wary of China’s growing regional clout and the world’s two most populous countries compete for influence in South Asia, despite a recent diplomatic thaw.
China said this month that it was preparing dedicated hospitals for Bangladeshi patients after relations soured with India, which was once a major health care destination for them.