Pakistan, July 18 -- 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 penetra...