Officials from the Ministry of Information Technology informed a parliamentary panel on Tuesday that the launch of 5G cellular services in Pakistan is not feasible due to a number of issues, particularly because the profit margin has decreased significantly as a result of the current economic crisis, reported by Business Recorder.

The launch of 5G technology in Pakistan would be impossible in light of the increase in electricity prices and other relevant issues, according to information technology officials, Pakistan Telecommunication Authority (PTA) representatives, and representatives of cellular companies who briefed the National Assembly Standing Committee on Information Technology under the chairmanship of Naz Baloch.

Representatives from the telecom sector told the committee that the industry’s profit margins have shrunk significantly as a result of the recent economic downturn. The officials informed the panel that 1.5 percent of the total profit earned by mobile companies went to the Universal Service Fund.

They claimed that due to the country’s severe financial crisis, cellular companies were unable to import telecom-related equipment because letters of credit could not be opened, causing service to suffer.

According to PTA officials, the string of challenges and impediments to launching 5G services in the country include low handset and optic fibre cable (OFC) penetration, rising inflation, low average revenue per user (ARPU), and rising operating expenses (OPEX) combined with high taxation.