ISLAMABAD – A new report by the Asian Development Bank (ADB) has raised concerns about Pakistan’s underperforming digital sector, warning that the country’s lagging digital infrastructure and low adoption rates are hampering economic growth.
According to the comprehensive study, Pakistan’s digital sector contributes just 1.5% to the national GDP, revealing immense untapped potential. The ADB emphasizes the urgent need for investments in telecommunications infrastructure, especially fiber optic networks, to meet modern connectivity demands.
Despite 80% of the population having access to mobile internet, usage remains limited, primarily due to affordability issues and a sharp gender gap. The report reveals that while 86% of men own mobile phones, only 53% of women do. Internet access is similarly skewed: 53% of men vs. just 33% of women.
The ADB report also highlights Pakistan’s high regional tax rates on telecommunications, which are discouraging private investment and slowing sectoral growth. It recommends that the government lower taxes and simplify regulatory procedures to foster a more investor-friendly environment.
To promote digital inclusion, especially in underserved areas, the ADB suggests:
Expanding fiber broadband to rural schools and hospitals,
Improving cybersecurity frameworks,
Investing in digital literacy programs focused on women,
And distributing affordable smartphones to increase access.
Moreover, the report identifies significant opportunities for economic growth by digitizing agricultural value chains and supporting small and medium-sized enterprises (SMEs). It calls for training programs targeting women and youth in rural areas to equip them with online business and e-commerce skills, thereby paving the way for greater entrepreneurship and economic empowerment.
The ADB’s findings call for immediate policy action to bridge Pakistan’s digital divide and unlock the country’s digital economic potential.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.