KARACHI: The Federal Board of Revenue (FBR) has announced a major reduction in customs valuation for fibre broadband Wi-Fi routers, also known as Optical Network Terminals (ONTs). The move is set to benefit both consumers and operators, supporting the growth of fibre broadband services in Pakistan, which currently cover less than 5% of households — one of the lowest penetration rates in the region.
Background
In 2020, the FBR had sharply increased ONT valuations by nearly 300%, despite imports being made at prevailing global market prices through legitimate channels. Telecom operators challenged the hike, securing a stay order. A revised valuation in May 2024 brought rates down slightly to USD 199 for RF-ONTs and USD 60 for non-RF ONTs, compared to 2020 rates of USD 219 and USD 66.
After further objections from telecom companies and the Ministry of IT and Telecom, the FBR issued another revision in December 2024, reducing valuations to USD 165 for RF-ONTs and USD 44 for non-RF ONTs — still 100–200% above actual import prices.
On January 26, 2026, the FBR issued a fresh ruling slashing customs valuations to USD 38 for RF-ONTs and USD 21 for non-RF ONTs. The telecom industry has welcomed the decision, calling it a significant step toward reducing costs and promoting fibre broadband expansion across Pakistan.
This move is expected to make fibre broadband services more affordable and encourage operators to expand coverage, bridging the digital divide in the country.
