By Sardar Waqar Shahzad
As Pakistan endeavors to build a robust digital economy and reduce its dependency on foreign technological infrastructure, the sudden and uncritical acceptance of foreign satellite services like Starlink threatens to disrupt years of hard-earned progress in national telecom development. In particular, the aggressive entry of Starlink into the Pakistani market, without comprehensive regulations and economic foresight, could undermine domestic operators, distort the competitive landscape, and derail the country’s broader digitalization agenda.
For the past decade, Pakistan has made consistent efforts to expand its digital infrastructure through both public and private sector partnerships. Projects spearheaded by the Universal Service Fund (USF), the Pakistan Telecommunication Authority (PTA), and regional governments have extended broadband access to underserved areas, created thousands of jobs, and attracted local investments in fibre-optic deployment. These projects form the cornerstone of Pakistan’s vision for digital sovereignty—a model where national infrastructure is built, maintained, and governed by domestic stakeholders.
However, the entry of Starlink—a foreign-operated satellite internet service—poses a direct challenge to this framework. Starlink’s core value proposition lies in its ability to offer high-speed internet via a constellation of low Earth orbit satellites, independent of ground infrastructure. While this model can serve as a short-term solution for remote or mountainous regions, its long-term impact on local telecom companies and market structures is far more complex.
To begin with, the pricing model of Starlink is fundamentally misaligned with the economic realities of Pakistan. According to reports, the cost of acquiring the Starlink terminal hardware exceeds Rs 110,000, while the monthly service fee hovers around Rs 35,000. For context, this figure is nearly 25 times higher than the monthly broadband cost offered by local providers such as PTCL, StormFiber, Nayatel, and Zong. In a country where the minimum wage remains under Rs 32,000 and nearly 40% of the population lives in poverty, Starlink is not a tool for digital inclusion—it is a luxury service for elites and multinational corporations.
This pricing structure not only marginalizes the common citizen but also threatens to fragment the digital access ecosystem. Multinational businesses, diplomatic missions, and high-net-worth individuals might choose Starlink for its speed and autonomy, thereby diverting revenue from domestic ISPs. In response, local operators could be forced to cut prices unsustainably, reduce workforce expenditures, or halt expansion into unprofitable regions. Over time, this could lead to layoffs, service deterioration, and stagnation in local innovation.Such an uneven playing field undermines the principle of fair market competition. Unlike domestic ISPs, Starlink does not contribute to the Universal Service Fund, pay standard regulatory taxes, or rely on Pakistani-owned infrastructure. This allows it to operate with lower relative overhead, while reaping profits in U.S. dollars and remitting them abroad. Without corrective tariffs or regulatory parity, this system becomes inherently exploitative.
Moreover, Pakistan’s digital development strategy has emphasized localisation—not only of services, but of data, personnel, and investment. Telecom operators within the country are subject to local data storage requirements, lawful intercept mechanisms, and emergency response compliance. Starlink’s infrastructure, by contrast, is operated from foreign command centres and routes its data through global servers, beyond the control or oversight of Pakistani regulators. This erodes digital sovereignty and opens the door to cyber-vulnerabilities.Telecom industry experts have voiced these concerns repeatedly in regulatory forums. At recent meetings of the Senate Standing Committee on Information Technology, members questioned the viability of allowing a dollar-denominated service to enter the Pakistani market when the country is already facing external account pressure. Pakistan’s telecom sector is one of the few that generates revenue in local currency while reducing import dependency.
Introducing Starlink threatens to reverse this trend, increasing demand for dollar outflows and undermining the State Bank’s financial stabilization efforts.
Furthermore, the expansion of Starlink could diminish investor confidence in the local telecom industry. In recent years, telecom companies have attracted significant foreign direct investment (FDI) due to their long-term infrastructure plans and stable regulatory environment. However, the perception of unfair competition from an unregulated global entity may deter future investment and lead existing stakeholders to scale back their operations. This would be especially damaging at a time when the government is trying to encourage technology-sector investment through special economic zones and public-private partnership incentives.
From a technological perspective, reliance on satellite-based connectivity also reduces national resilience. Fiber-optic and terrestrial infrastructure, while capital intensive, is owned and maintained domestically. It can be scaled, repaired, and upgraded according to national needs. Satellite services, on the other hand, are at the mercy of foreign service providers. Any policy dispute, service suspension, or price hike by Starlink could leave users in Pakistan without alternatives. This creates a form of digital dependency that directly contradicts Pakistan’s goal of technological self-reliance.
Another often overlooked aspect is the environmental cost. Starlink’s expanding constellation of satellites contributes to space debris and orbital congestion. As a member of the UN Committee on the Peaceful Uses of Outer Space, Pakistan has committed to sustainable space activity. Encouraging reliance on a private network that accelerates satellite clutter contradicts these international commitments and diminishes Pakistan’s standing in global governance on space sustainability.
Additionally, local operators have already expressed concern about signal interference. Satellite transmissions operating in shared or adjacent frequency bands can disrupt existing telecom networks, particularly in rural areas where equipment is older or less shielded. The PTA has yet to release a comprehensive technical analysis of how Starlink’s signals will integrate with Pakistan’s spectrum allocation and whether it can guarantee non-interference with existing infrastructure.
To move forward responsibly, Pakistan must adopt a cautious and strategic posture. Starlink should not be granted operational license until a detailed impact assessment has been completed, covering economic, technical, security, and diplomatic dimensions. Regulatory frameworks must be updated to include satellite-specific clauses related to taxation, data localization, emergency protocols, and service parity with local operators.Pakistan can also consider conditional licensing—limiting Starlink’s services to non-commercial rural educational institutions, research bodies, and specific disaster-prone areas where terrestrial options are nonviable. This ensures that the technology is used for developmental purposes without distorting the market or jeopardizing economic stability.
Finally, there is a need for a broader national dialogue on foreign tech dependency. Policymakers, telecom industry representatives, civil society, and academics must engage in discourse that defines the principles guiding foreign participation in Pakistan’s digital ecosystem. A national digital sovereignty charter may be necessary—one that protects local enterprises, ensures fair competition, and safeguards user data without compromising on global connectivity or innovation.
While Starlink offers the allure of technological advancement, its unregulated entry into Pakistan could undermine local telecom growth, widen digital inequality, and weaken national control over essential digital infrastructure. A forward-looking policy must prioritize sustainable development over short-term convenience, ensuring that Pakistan’s digital future is built by, and for, its own people.
About Author:
Sardar Waqar Shahzad is a dedicated expert in international affairs, diplomacy, and interfaith dialogue.He serves as Head of Internationalization at GSISD and is a National Commissioner at the Pakistan Boy Scouts Association.
