Pakistan’s push to connect its unserved and underserved areas has crossed a major milestone. The Universal Service Fund (USF) has now deployed more than $1.054 billion in contracted subsidies for digital connectivity projects, officials announced at the Asia-Pacific Telecommunity (APT) Symposium on Digital Transformation in Islamabad.
The announcement, made by Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on October 14, 2026, marks the fund as one of the largest digital-inclusion programmes in the region. USF Pakistan Chief Executive Officer Chaudhry Mudassar Naveed said the fund has completed 158 of the 185 projects awarded to it, used over Rs169 billion in subsidies, and directly benefited more than 38.4 million people.
Fibre, towers and broadband home passes all grew
The numbers show how fast the groundwork is moving. USF has laid over 17,000 kilometres of optical fibre cable. Fibre broadband home passes rose from under three million in 2024 to more than five million. Fibreisation of mobile towers increased from 15 percent to over 19 percent — with a target of at least 60 percent, since deep fibre is needed to deliver full 5G.
More than 30 data centres are currently operating in Pakistan. Several public sector institutions, including the State Bank and the PTA, along with private companies, have set up local data centres to provide digital infrastructure and hosting services inside the country.
Rs32.9 billion budget approved for FY2026-27
The USF policy committee has also approved a Rs32.90 billion budget for fiscal year 2026-27, with 15 new 4G projects aimed at expanding connectivity to 3.66 million people across 1,893 mauzas (villages) in 21 districts. The meeting was chaired by the IT minister, with USF CEO Mudassar Naveed presenting the programme portfolio.
The committee earmarked Rs24.89 billion for payments on ongoing projects and Rs6.56 billion for new initiatives, plus Rs5.57 billion for the first quarter to keep implementation on schedule. USF currently manages 28 projects, including 17 broadband service schemes and 11 optical fibre network projects.
Some of the new projects are at an advanced stage: the Kurram project has reached 75 percent completion, while projects in Pishin, Chiniot, Abbottabad, Badin and Kohat are at 50 percent. The Pishin project alone covers 306 mauzas with a subsidy of Rs1.32 billion.
What USF is and who pays for it
USF was set up in 2007 and is funded by a 1.5 percent levy on telecom company revenues. Its job is to extend telecom and broadband services to areas where commercial operators would not build on their own — remote districts, mountainous regions and sparsely populated areas.
At the APT symposium, which brought together ministers, regulators and industry executives from across the region, member states discussed moving universal service funds beyond traditional coverage subsidies towards gigabit fibre, satellite networks, smartphone financing and rural AI infrastructure.
Closing the digital divide
Officials highlighted several wider gains. Pakistan recorded the fastest global progress over two years in reducing the gender gap in mobile internet use, dropping from 38 percent to 8 percent, according to GSMA data. Fuel subsidies were delivered to over 10 million people through a technology-based system that did not even require a smartphone.
The minister added that the Fixed Satellite Services (FSS) framework is in its final stages, and that three new submarine internet cables have landed in Pakistan over the past two and a half years — moves aimed at strengthening both international and remote-area connectivity.
FAQs
What is the Universal Service Fund in Pakistan?
USF is a government fund set up in 2007, financed by a 1.5 percent levy on telecom operators’ revenues, to extend broadband and telecom services to unserved and underserved areas.
How much has USF spent so far?
More than $1.054 billion in contracted subsidies, with over Rs169 billion used across completed projects, benefiting more than 38.4 million people.
What is the USF budget for FY2026-27?
Rs32.90 billion, including 15 new 4G projects targeting 3.66 million people across 1,893 mauzas in 21 districts.
How many USF projects are complete?
158 of 185 awarded projects are complete, with over 17,000 kilometres of optical fibre laid.
Who benefits from USF projects?
People in remote and underserved areas — more than 38.4 million so far — where commercial operators would not have built networks on their own.
Conclusion
Crossing the $1 billion mark makes USF one of the most consequential digital-inclusion programmes in the region. With 158 projects complete, fibre passes up five million homes, and a Rs32.9 billion budget backing 15 new 4G projects, the fund is now shifting from basic coverage towards gigabit fibre, satellite connectivity and rural digital services. For millions in remote districts, this is the infrastructure that makes everything else — 4G, digital payments, online education — possible.