Frontier Economics Limited has been commissioned by VEON to assess the economic and fiscal implications of reducing sector-specific taxation on mobile services in Bangladesh and Pakistan.
The report, which sets out the results of our analysis, is intended to support evidence-based dialogue with national governments and international institutions on how mobile sector tax policy can be aligned more closely with both nations’ broader digital development and fiscal sustainability objectives.
Bangladesh and Pakistan are two mobile-first economies where mobile networks are households and businesses’ primary means of accessing digital services. In these markets, mobile connectivity plays a central role in enabling digital inclusion, access to finance, and participation in the formal economy.2 Digitalisation also contributes to broadening the tax base over time by shifting economic activity into more formal, traceable and auditable channels and improving the effectiveness of tax collection.
At the same time, the mobile sector in both countries is subject to a complex and unusually high burden of sector-specific taxes. In this report we explain why the development of the mobile sector is vital for Bangladesh and Pakistan, how excessive taxation acts as a barrier
to digitalisation, and the potential economic and fiscal benefits associated with tax reform.
Click below to read the report in full.
Author
Managing Director
Senior Principal
Consultant
26 May 2026