ISLAMABAD – The Asian Development Bank (ADB) has released a report on Pakistan’s digital ecosystem, stressing the urgent need for investment and reforms to improve connectivity and boost economic output.
According to the report, Pakistan’s digital sector contributes only 1.5% to the country’s GDP, highlighting the sector’s underdevelopment. Fixed broadband access remains low at just 1.3%, and fiber optic network coverage is still very limited.
Moreover, the report highlights a sharp digital divide, especially for women and low-income groups. While 80% of the population has access to mobile internet, actual usage is significantly low due to affordability and literacy barriers.
ADB’s data shows that 86% of men and 53% of women own mobile phones, but only 53% of men and 33% of women have access to the internet. Expanding access for women and rural communities is essential for inclusive growth.
The report also points out that Pakistan’s telecom sector faces the highest tax rates in the region, which discourages investment. It urges the government to improve conditions for telecom investors and expand fiber infrastructure in remote areas.
For effective digital governance, ADB recommends strong cybersecurity policies and improved data management systems. The report calls for digital literacy programs for women, affordable smartphones, and training in online business for youth, especially in rural regions.
Finally, ADB emphasizes that digitizing agriculture value chains and SMEs could boost Pakistan’s GDP, but the country’s poor 4G coverage and unpreparedness for 5G remain major obstacles to digital transformation.