Universal Service Fund Commits $1.05bn; 158 of 185 Projects Complete
Universal Service Fund has committed $1.054 billion in subsidies, finished 158 of 185 projects and reached 38.4 million people. FY27 budget and new 4G projects.
Pakistan’s Universal Service Fund (USF) has committed $1.054 billion in contracted subsidies to expand telecom and internet connectivity, IT Minister Shaza Fatima Khawaja said on 13 October 2026. According to USF CEO Mudassar Naveed, 158 of the fund’s 185 awarded projects are complete, with more than Rs. 169 billion in subsidies used and over 38.4 million people directly benefiting.
Universal Service Fund in numbers
| Measure | Figure |
|---|---|
| Contracted subsidies | $1.054 billion |
| Projects awarded | 185 |
| Projects completed | 158 |
| Subsidies used | More than Rs. 169 billion |
| People directly benefiting | More than 38.4 million |
| Budget for FY2026-27 | Rs. 32.90 billion |
The figures were shared at a three-day symposium on digital transformation held in Islamabad from 13 to 15 October, co-hosted by the IT Ministry, USF and the Asia-Pacific Telecommunity (TechJuice, Bloom Pakistan).
What the Universal Service Fund does
The USF uses money collected from the telecom sector to pay subsidies to operators that build networks in areas where commercial rollout alone would not be profitable, such as remote villages and small towns. Its two main programmes are mobile broadband projects (Next Generation Broadband for Sustainable Development) and optical fibre projects (Next Generation Optical Fibre Network Services).
The FY2026-27 budget
On 22 September 2026, the USF Policy Committee approved a Rs. 32.90 billion budget for the current fiscal year (APP):
- Rs. 24.89 billion for payments on ongoing projects
- Rs. 6.56 billion for new initiatives
- Rs. 5.57 billion released for the first quarter
The USF currently runs 28 projects: 17 mobile broadband and 11 optical fibre schemes. The new allocation covers nine more broadband projects, four fibre projects and block funds for small lots in remote areas.
New 4G projects
According to The Express Tribune, 15 contracted 4G schemes carry a combined subsidy of Rs. 14.008 billion and target 3.66 million people across 1,893 mauzas in 21 districts. Khuzdar has the largest project, covering 144 mauzas and about 75,600 people with a subsidy of around Rs. 2.945 billion. Projects in Pishin, Chiniot, Abbottabad, Badin and Kohat were reported to be about halfway complete.
What it means for users
For people in underserved areas, USF projects mean mobile signal and 4G data where there was little or none, which opens up online banking, education and government services. In cities, faster options such as 5G and fibre are expanding commercially, while satellite internet is still awaiting a regulatory framework; see our Starlink in Pakistan update.
Frequently asked questions
How much has the Universal Service Fund invested?
$1.054 billion in contracted subsidies, according to the IT minister.
How many USF projects are complete?
158 of 185 awarded projects, as of October 2026.
What is the USF budget for 2026-27?
Rs. 32.90 billion, approved on 22 September 2026.
