Pakistan's New Infrastructure Investments and Trade Routes

by Riaz Haq

May 4

Pakistan has recently launched 5G wireless service in multiple cities and closed financing on the 306 kilometer 6-lane Sukkur-Hyderabad M6 motorway. In addition, Pakistan is seeing significant increase in the utilization of its Gwadar and Karachi ports after the closure of the Strait of Hormuz due to the US-Iran war. This will help open the trade routes from Pakistan to Central Asia via Iran, bypassing unstable Afghanistan. It has the potential to eventually make Pakistan a major transshipment hub for the region extending to the land-locked Central Asian Republics. Another major news is the Asian Development Bank financing of cross-border connectivity of the power grid and digital networks. These developments are expected to substantially enhance economic activity in the country, in spite of the short-term negative impact of the energy crisis, particularly in oil and gas imports. 



5G Launch:

Wireless carriers Jazz and Zong have launched 5G services across Pakistan in March 2026.  This will further expand and enhance Pakistan's digital public infrastructure. Jazz launched its 5G service across major cities, including in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, Quetta, Multan, and Faisalabad. Meanwhile, Jazz's competitor Zong is targeting over 16 cities with 5G speeds exceeding 1.4Gbps. 

During the March auction, a total of 480 MHz of spectrum was sold across multiple bands for over $500 million, with Pakistan's main telcos, Jazz, Ufone, and Zong, snapping up the assets. Pakistan Telecommunication Authority (PTA) put a total of 597 MHz of spectrum on the table, with just over 100 MHz of this going unsold.

M6 Motorway:

Pakistan has signed an agreement with the Asian Development Bank (ADB) for $235 million in financing for two sections (120 miles) of the M6 motorway in Sindh province. The Islamic Development Bank (IDB) and the OPEC Fund have already agreed to finance three other sections of this motorway. 

The M-6 motorway is the only missing segment in the north-south motorway route linking Karachi to Peshawar. The 306-kilometer-long, six-lane motorway will have 15 interchanges and 10 service areas.

Cross-Border Grid Connectivity:

Pakistan is joining the Pan-Asia Power Grid Initiative sponsored and financed by the Asian Development Bank which will provide $50 billion for power and $20 billion for digital infrastructure. The project will link grids, boost power trading, improve broadband and develop AI-ready communities across Asia, the Pacific. 

Iran Trade Routes:

Pakistan has opened six land transit routes for goods destined for Iran, creating a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz.

This development signals a major shift away from the Gulf trade infrastructure Iran had long relied upon, particularly through Jebel Ali Port in the United Arab Emirates. This represents an opportunity for Pakistan to create new trade routes to Central Asian Republics bypassing Afghanistan, eventually making Pakistani ports a major transshipment hub for the entire region. 

Pakistan's newest Gwadar Port has already seen a major surge in activity, handling around 11,000 containers in April 2026 alone, surpassing its entire 2025 volume. The increase comes as shipping companies adjust routes due to disruptions near the Strait of Hormuz, pushing traffic toward safer alternatives.

Space Program:

Pakistan's space agency SUPARCO has achieved a major milestone by launching five indigenous satellites over the last 16 months (early 2025 – April 2026), marking a shift toward rapid space technology expansion. The fleet, aimed at Earth observation and agriculture, includes EO-1, EO-2, AI-powered EO-3, and Pakistan's first hyperspectral satellite, HS-1. 

HS-1 is Pakistan's first hyper-spectral  satellite which is equipped with advanced hyperspectral imaging sensors capable of capturing data across hundreds of narrow spectral bands.  The satellite lifted off from China’s Jiuquan Satellite Launch Center on a Kinetica-1 rocket. It is expected to boost Pakistan's national capacities in areas such as precision agriculture, environmental monitoring, urban planning, and disaster management. Its high-resolution data will support improved resource management and strengthen Pakistan’s resilience to climate-related challenges. 

Related Links:

Load Previous Comments

  • Riaz Haq

    Pakistan Sees Sudden 6x Jump in Credit Card ATM Transactions
    By Business Desk | Published Jul 26, 2026 | 8:06 pm

    https://propakistani.pk/2026/07/26/pakistan-sees-sudden-6x-jump-in-...

    Pakistan’s credit card market recorded its largest-ever quarterly growth, with the number of cards in circulation jumping by 900,000 in just three months, according to Gallup Pakistan’s Digital Analytics Dashboard based on data from the State Bank of Pakistan (SBP).

    The total number of credit cards increased from 2.2 million in FY25 to 3.1 million in Q1 FY26 (July-September 2025), up by 44 percent.

    The addition exceeds the total net growth recorded over the previous six years, during which the credit card base rose from 1.6 million to 2.2 million.

    The surge coincided with a sharp rise in credit card usage. SBP data shows the value of credit card transactions at ATMs increased nearly sixfold during the same quarter.

    Despite the unprecedented jump, no major bank, fintech, or financial institution publicly announced a large-scale credit card issuance campaign during the period.

    The increase could be linked to a major card issuance, a regulatory reclassification of certain card products, or the launch of new credit-based payment products. SBP hasn’t revealed anything on this so far.

    Debit cards continue to dominate Pakistan’s payment landscape, accounting for around 90% of the country’s 61.3 million payment cards, while credit cards represent about 4 percent.

    -----------

    Credit card growth in Pakistan is experiencing a sudden shift, jumping from a stagnant base of 2.2 million to 3.1 million cards in late 2025, driven by rising fintech adoption and digital banking integrations. Despite this growth, total penetration remains exceptionally low relative to the country's population. [1, 2, 3, 4]
    Market Statistics and Recent Surge
    Base Expansion: Stagnated around 1.6 million to 2.2 million cards between FY20 and FY25, before a single-quarter jump to 3.1 million in Q1 FY26 (July–September 2025). [1]
    Transaction Activity: ATM credit card transaction values spiked nearly 6x during the Q1 FY26 surge, confirming active utilization rather than passive issuance. [1]
    Overall Market Share: Debit cards still heavily dominate, making up roughly 90% of Pakistan’s 61.3 million total payment cards. [1]

    Jul 26

  • Riaz Haq

    Pakistan Rolls Out 1,136 5G Sites Across 23 Cities.
    Pakistan has deployed 1,136 5G sites across 23 cities, with Jazz leading the rollout at 689 sites. Karachi, Lahore, Islamabad, and Faisalabad currently have the highest number of deployments.

    https://www.techjuice.pk/pakistan-rolls-out-1136-5g-sites-across-23...

    Pakistan has deployed 1,136 5G sites across 23 cities as of August 4, 2026, according to the latest PTA update.

    The PTA data shows that Jazz has deployed 689 5G sites, followed by Zong with 338 sites and Ufone with 109 sites. Jazz alone accounts for 60.7% of the deployed 5G sites, while Zong has a 29.8% share and Ufone 9.6%.

    The largest 5G deployment has been recorded in Karachi with 257 sites, followed by Islamabad with 192 sites, Lahore with 241 sites and Faisalabad with 131 sites.

    The PTA said it is closely monitoring cellular mobile operators to ensure the timely rollout of 5G services across the country and will submit periodic updates to the relevant committee.

    Aug 7

  • Riaz Haq

    Data shows Jazz invested $59.67 million in 5G rollout up to June 2026, while Zong invested $98.9 million and Ufone an estimated $20 million


    https://www.brecorder.com/news/40435965/pakistans-5g-rollout-attrac...





    ISLAMABAD: Telecom operators have invested around $178.6 million in rolling out 5G services in Pakistan, with 1,136 sites upgraded to 5G across the country, according to data shared by the Ministry of Information Technology and Telecommunication.

    The data shows that Jazz invested $59.67 million in 5G rollout up to June 2026, while Zong invested $98.9 million and Ufone an estimated $20 million.

    The ministry said the government’s Policy Directive dated January 6, 2026 for the spectrum auction did not set any specific target for telecom companies to bring in foreign direct investment for 5G rollout.


    According to investment projections provided by mobile operators, Jazz is expected to invest a further $30.33 million in 5G rollout during fiscal year 2027, while Zong has forecast an investment of $39.9 million during the year.

    The ministry said Ufone’s fiscal year 2027 investment data would be shared after completion of merger-related activities.

    Meanwhile, mobile operators have upgraded a total of 1,136 sites to 5G across Pakistan.

    The development indicates that operators are making substantial investments in expanding next-generation mobile connectivity despite the absence of a specific government-mandated FDI target linked to 5G deployment.

    The government had conducted the 5G spectrum auction in March 2026, paving the way for commercial rollout of next-generation mobile services in the country.

    on Saturday