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ISLAMABAD: Pakistan lost nearly $1 billion in foreign direct investment (FDI) in the telecom sector in just one year, with inflows plunging from $1.67 billion in 2021–22 to $750 million in 2022–23, according to a new report by the Asian Development Bank (ADB).

The dramatic decline reflects growing unease among investors about Pakistan’s digital infrastructure landscape, which suffers from high taxation, poor spectrum allocation, limited fiber penetration and regulatory unpredictability. While demand for mobile Internet continues to grow, with over 138 million mobile broadband users as of late 2024, the enabling environment for investment has worsened, especially amid Pakistan’s macroeconomic volatility.

Fixed broadband penetration remains at just 1.3 percent, and only 14.8 percent of cell towers are connected to fiber, making it difficult to meet rising data demands or prepare for 5G deployment. The report notes that the telecom sector has contributed over PRs1.28 trillion to the national treasury in the past five years, yet sustained investment in digital infrastructure has failed to materialize.

The bank has warned that without urgent reforms, the sector may fail to deliver on its potential as a key enabler of digital transformation and economic growth.

“The telecom sector in Pakistan has experienced a decline in revenues and foreign investment, which reflects a very challenging business environment,” the ADB wrote in its Pakistan Digital Ecosystem Diagnostic Report, released in July 2025.

The report singles out Pakistan’s spectrum auction model as a major constraint. Starting prices are set in US dollars and often considered unaffordable by private operators, discouraging participation and delaying the deployment of next-generation networks.

“The spectrum auction starting prices and commercial conditions need to be reasonable and attractive for operators,” the ADB said. “This would facilitate the timely and cost-effective launch of 5G technology and enable new applications and innovations in the digital economy.”

Taxes imposed by both federal and provincial authorities are described as among the highest globally for the sector. Right-of-way (RoW) fees, charged annually in Pakistan, further burden service providers, unlike in countries like India where such fees are levied only once and at a nominal rate.

To reverse the downward trend, the ADB has recommended a long-term tax policy guarantee, reform of spectrum pricing mechanisms, and a unified national RoW regime. It also called for deeper engagement with provincial governments to generate “anchor demand” for fiber services through public institutions like schools and hospitals in tier 2 and tier 3 cities.

The report emphasizes that the telecom sector must be viewed not only as a commercial domain but as foundational infrastructure for Pakistan’s future. Without decisive action, it warned, digital inequality will widen and Pakistan’s competitiveness will suffer.

“Pakistan’s digital infrastructure is dragging down its overall digital readiness and economic performance,” the ADB concluded.

ISLAMABAD: Pakistan’s disaster management authorities on Thursday warned of urban flooding and rising river levels in several regions, including Rawalpindi and Islamabad, as relentless monsoon rains battered large swathes of the country, pushing the seasonal death toll close to 190.

The fresh alert came as intense monsoon activity swept across northeastern and central Pakistan, prompting emergency declarations, evacuation adviseries and a heightened state of alert across provincial administrations.

In Punjab, the country’s most populous province, the Provincial Disaster Management Authority (PDMA) said 103 people had died and 393 had been injured in rain-related incidents since the start of the monsoon season in late June.

“In the last 24 hours alone, 63 people have died and 290 have been injured due to monsoon-related incidents,” the PDMA said in a statement. “Monsoon rains have also damaged 128 houses and killed six livestock animals.”

Most of the casualties occurred in densely populated districts such as Lahore, Faisalabad, Okara, Sahiwal and Pakpattan, largely due to roof collapses in structurally vulnerable homes.

The National Disaster Management Authority (NDMA) said the nationwide death toll stood at 124 on Wednesday. With the latest fatalities in Punjab, it has risen to at least 187.

“Over the next 24 hours, intense rainfall could trigger flash floods in cities and cause surging water levels in streams and rivers,” the NDMA said Thursday. “Heavy downpours are expected to continue in Rawalpindi and Islamabad for the next 24 to 48 hours, raising the risk of flooding in low-lying areas and along Nullah Lai.”

“Residents near the stream are advised to prepare for possible evacuation if warning sirens are sounded and cooperate fully with local authorities,” the statement added.

Authorities have urged people to vacate unsafe structures, avoid flood-prone zones and keep children indoors as flash floods, collapsing roofs and overflowing drains pose acute threats to life in several regions.

The NDMA said it had instructed local agencies to remain on high alert, ensure the availability of rescue and drainage equipment and coordinate early warning efforts. People were advised to make advance arrangements for food, drinking water and emergency supplies.

EMERGENCY IN RAWALPINDI

In Rawalpindi, a city of more than 2 million, over 230 millimeters of rainfall was recorded in just 15 hours, prompting local authorities to declare a state of emergency.

Water levels in the Nullah Lai stream surged to 20 feet at Katarian and 19 feet at Gawalmandi, according to the Water and Sanitation Agency (WASA). A local holiday was declared to minimize public movement in flooded areas.

“Rescue and relief equipment was distributed in advance to district authorities ahead of the monsoon,” the PDMA said.

“In view of the emergency in Rawalpindi, Rescue 1122 currently has 16 OBM [outboard motor] boats, 205 life jackets, 31 ambulances, 19 fire brigades and 4 rescue vehicles on standby.”

Evacuation announcements were being made from mosques in high-risk areas. Authorities called on residents living near Nullah Lai to cooperate with relocation efforts if needed.

In the federal capital Islamabad, rain continued intermittently for several hours. Sanitation workers were deployed to clear clogged drains, assistant commissioners inspected stormwater infrastructure and traffic police were dispatched to manage congestion on waterlogged roads.

FLASH FLOODS IN PUNJAB

In other parts of Punjab, including Chakwal, heavy rainfall caused significant disruption. A cloudburst in Chakwal dropped 423 millimeters of rain, flooding low-lying areas and inundating homes, according to local TV channel Geo News. Rescue operations were launched and evacuations were underway.

In Jhelum, the Pakistan Army conducted an emergency airlift operation after flash floods stranded 40 people in the Deras of Mouza Dhok Biddar and Nakkan Kalan. Due to heavy rainfall, boat rescues were not possible, and helicopters were used to evacuate all individuals safely.

Pakistan contributes less than one percent to global greenhouse gas emissions but is among the countries most vulnerable to climate change. Shifting monsoon patterns, accelerated glacial melt and extreme weather events have increased the frequency and severity of climate-linked disasters.

In 2022, record-breaking monsoon rains combined with glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million.