Pakistan's Digital Public Infrastructure (DPI) Initiative Transforming Lives
Pakistan's journey to build a digital public infrastructure (DPI) began in March 2000 with the establishment of NADRA, the National Database and Registration Authority. The Gates Foundation defines DPI as follows: "DPI is a digital network that enables countries to safely and efficiently deliver economic opportunities and social services to all residents. DPI can be compared to roads, which form a physical network that connects people and provides access to a huge range of goods and services...... strong DPI has three foundational systems—identity, payments, and data exchange—that together can make life easier in important ways".
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| Digital Public Infrastructure. Source: World Economic Forum |
Transformational Impact:
An article recently published on the World Economic Forum website sheds light on how Pakistan's digital public infrastructure is transforming lives in rural Pakistan. Here's how it begins:
"On a scorching day with temperatures soaring to 42 degrees, Manzoora, a mother from the flood-stricken district of Shaheed Benazirabad, rural Sindh, Pakistan, made a significant leap: she withdrew cash from her own bank account for the very first time. This milestone was made possible through a mobile cash transfer programme initiated by the Sindh government, which partnered with digital service providers to empower citizens like Manzoora. This is just one example of how DPI is changing the lives of millions of Pakistanis".
An earlier UNDP report titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood has also described the socioeconomic impact of technology in Pakistan in the following words:
"The world as we know it has been and is rapidly changing. Technology has proven to be one of the biggest enablers of change. There has been a significant emphasis on digital training, tech education, and freelancing in the last several years especially during the pandemic, through initiatives from the government, private and development sectors. Covid-19 acted as a big disrupter and accelerated the digital uptake many folds. In Pakistan, we saw the highest number of digital wallets, online services, internet-based services and adaptability out of need and demand".
Digital Identity:
NADRA launched Computerized National Identity Card (CNIC) the same year it was established. It uses biometric data and personal information to confirm the identity of the cardholder as a citizen of Pakistan. The CNIC card is used across the country for voting in elections, opening bank accounts, issuing passports, getting driver's licenses, registering marriages and divorces, completing real estate transactions, participating in social safety net programs like Benazir Income Support, obtaining mobile phone numbers/sims, purchasing tickets for airlines and railways, etc etc.
The introduction of CNIC was a "foundational change, positioning Pakistan among a select group of nations equipped to manage comprehensive digital identities for over 240 million citizens", according to the World Economic Forum. Within four years of launching the Benazir Income Support Program (BISP) – a social protection initiative to alleviate poverty – CNIC issuance to adults increased by 72%.
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| Pakistan Instant Payment System. Source: State Bank of Pakistan |
Payments:
Digital identity enables payments from the government to citizens as well as financial transactions among individuals, businesses and government entities. The introduction of RAAST, an instant low-cost payment system launched in 2021 by the State Bank of Pakistan, has spurred digital payments in the country. It seamlessly and securely connects government entities, a variety of banks, including microfinance banks (MFBs), electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs).
QR Codes:
This year, the State Bank of Pakistan has launched P2M (Person to Merchant) services. These allow people with electronic wallets in their mobile phones to pay for goods and services using merchants' QR codes. “The P2M service will enable payment acceptance by businesses using quick response (QR) codes, Raast Alias, IBAN and request to pay (RTP),” the Central Bank said in an announcement.
"All REs (regulated entities) shall enable…capabilities for processing P2M transactions via their delivery channels including mobile apps, internet banking portals and USSD channels (where applicable) by March 01, 2024." The central bank asked Raast merchant service providers (MSPs) to ensure that customers are not charged any fee on their purchases, by merchants or third parties.
"MSPs may…charge a reasonable fee from merchants for the services provided; however, they are encouraged to initially waive off such charges to promote merchant adoption."
RAAST Uptake:
Raast, the State Bank of Pakistan's Instant Payment System, is playing an important role in facilitating free, convenient and secure real-time transactions across the country, according to a report published by the State Bank of Pakistan. During Q3 of FY24, Raast processed 140 million transactions totaling Rs. 3,437 billion.
Digital transactions took center stage in Pakistan's financial landscape during Q3 FY 2023-24, capturing a commanding 83% of 844 million total retail payments processed by Banks and Electronic Money Institutions (EMIs), while the remaining 17% were Over-the-Counter (OTC) transactions at banks’ branches, reports Mettis Global.
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| Pakistan National Socioeconomic Registry. Source: Maintains |
National Socioeconomic Registry:
The National Socio-economic Registry has been created . It will be regularly updated to keep it current and deliver services to the Pakistanis most in need. The effort started in earnest in 2020 to hand out Rs. 12,000 per family to 3 million most affected by the COVID19 lockdown. Here's how a Pakistani government website describes the digital registry architecture:
"The Cognitive API architecture for Ehsaas’ National Socio-Economic Registry 2021 is one of the six main pillars of ‘One Window Ehsaas’. With the survey, which is building the registry currently 90.5% complete nationwide, Ehsaas is firming up its plans to open data sharing and data access services for all executing agencies under the Poverty Alleviation and Social Safety Division (PASSD). Data sharing will be done through the Cognitive API Architecture approach. The deployment of Ehsaas API architecture for data sharing will allow executing agencies to access data from the unified registry in real-time to validate beneficiary information. This will empower them to ascertain eligibility of potential beneficiaries".
DPI Future Plans:
In future, Pakistan is set to launch several ambitious DPI initiatives, including expanding the RAAST payment system, implementing a nationwide digital health records system, and launching a blockchain-based land registry. These projects promise to drive efficiency and transparency across multiple sectors, positioning Pakistan as a pioneer in the global digital landscape, according to a report by the World Economic Forum.
Related Links:
2021: A Banner Year For Tech Startups in Pakistan
Pakistan Projected to Be World's 6th Largest Economy By 2075
Digital Pakistan 2022: Broadband Penetration Soars to 90% of 15+ Population
Working Women Seeding a Silent Revolution in Pakistan
Socioeconomic Impact of New Infrastructure in Rural Pakistan
Solar Power Boom in Pakistan
Pakistan at 75
Growing Presence of Pakistani Women in Science and Technology
Riaz Haq's Youtube Channel
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https://www.brecorder.com/news/40304707
The government has announced the establishment of ten new Software Technology Parks across the country by next year, according to Radio Pakistan.
This was stated during a briefing by the Ministry of Information Technology to a high-level meeting chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad.
The meeting was informed that 100 new e-employment centers will also be set up in the country by next year.
The project of Islamabad IT Park will be completed next year with the cooperation of South Korea. It will provide startups, incubation centers, banks, restaurants, and other facilities.
The meeting was informed that South Korea is also collaborating in establishing an information technology park project near Jinnah International Airport in Karachi which will be completed by 2027.
So far, 43 software technology parks have been established in 29 cities of the country.
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Tech parks for growth
https://www.thenews.com.pk/print/1177295-tech-parks-for-growth
In today’s fast-paced global economy, technology parks play a crucial role in fostering industrial development by providing an ecosystem conducive to innovation, collaboration and entrepreneurship.
These designated areas are often referred to as research and technology parks or science parks. They can serve as catalysts for economic growth, driving technological advancements, attracting investment, and nurturing talent. By bringing together academia, industry, and government, these parks facilitate collaboration and knowledge exchange, leading to breakthrough discoveries and technological advancements.
They are often located within or near universities so that they have ready access to highly trained workers in various fields. In Pakistan, I was involved in establishing a technology park in the National University of Science and Technology in Islamabad as well as setting up several software technology parks in early 2001 in Islamabad, Lahore, Karachi and Peshawar. More recently, an excellent technology park was established under my supervision within the Pak-Austria Fachhochschule (University of Applied Science and Engineering) in Haripur, Hazara.
Technology parks play a crucial role in enhancing the competitiveness of industries by providing access to state-of-the-art infrastructure, specialized facilities, and cutting-edge equipment. Companies located within technology parks benefit from shared resources such as research laboratories, testing facilities, and prototyping centres, enabling them to accelerate the development and commercialization of new products.
Moreover, the clustering effect of technology parks encourages the formation of industry clusters, where companies operating in related sectors can collaborate, share best practices, and access a pool of skilled talent.
https://profit.pakistantoday.com.pk/2024/07/15/who-owns-pakistans-digital-wallet-throne/
In 2008, a seismic shift occurred in Pakistan’s financial services landscape with the introduction of Branchless Banking (BB). This innovation sparked a digital revolution, reshaping how millions of Pakistanis access and use financial services. By the end of 2023, this transformation had reached new heights, with BB accounts soaring to 114 million—an 18.1% increase from the previous year. Even more striking, active accounts surged by 50.9% to 64.1 million, underscoring the growing adoption of digital financial solutions.
At the heart of this digital finance boom are two titans: Telenor Bank’s Easypaisa and Mobilink Bank’s JazzCash. These digital wallets have become household names, each carving out a significant portion of the market. While JazzCash leverages its vast customer base and market reach, Easypaisa, as a pioneer, boasts an extensive network of agents and merchants. Their rivalry not only fuels innovation but also raises a compelling question: In this rapidly evolving landscape, who truly leads the digital wallet revolution in Pakistan?
Both companies claim market leadership. VEON’s 2023 annual report states, “JazzCash was the largest domestic fintech platform and the most popular mobile fintech application in Pakistan.” Conversely, Telenor Bank’s annual report asserts, “The bank continued to solidify its position as a leading player in Pakistan’s digital financial sector in 2023.”
Given these competing claims, how can we determine which company truly leads the market?
History of Easypaisa and JazzCash
The advent of branchless banking in Pakistan can be traced back to the mid 2000s. We had Tameer Bank (Now rebranded as Telenor Bank) which was suffering from high delinquencies and was looking for a way out. As fate would have it, SBP was also looking to introduce the branchless banking regime in the country.
https://www.dawn.com/news/1853507
The fintech platform introduced Tap-Pay for Business, allowing businesses to receive payments from contactless debit or credit cards or other smartphones with a simple tap.
JazzCash, Pakistan’s leading fintech platform, has launched its latest feature, Tap-Pay for Businesses, enabling over 350,000 businesses across the country to accept payments through their Android smartphones. This cutting-edge feature allows businesses to seamlessly receive payments from any contactless debit or credit cards or another smartphone with a simple tap on the businesses’ NFC-enabled device.
The launch closely follows JazzCash’s recent introduction of the Tap-Pay feature for customers, which allows customers to make payments directly from their phones. Together, these features will help establish an end-to-end contactless payment ecosystem in Pakistan.
Murtaza Ali, president of JazzCash, said, “Our goal is to empower both customers and businesses. With Tap-Pay, we aim to enhance Pakistan’s payment ecosystem with innovative solutions that are not only relevant but also accessible to all. This is a significant milestone as we continue to lead the way in digital financial inclusion and redefine how small businesses manage transactions.”
As of Q3 of FY 2023-24, over 47 million debit and credit cards are in circulation in Pakistan, and the State Bank of Pakistan (SBP) reported card purchases on POS machines totalling Rs394 billion during the same period. By enabling businesses using JazzCash to tap into this market, the fintech platform is opening new revenue streams for businesses and fostering greater financial inclusion.
The introduction of the Tap-Pay for Businesses feature has been made possible through a strategic collaboration with Mastercard, technology partner Wizzit Holdings, and acquiring partner Bank of Punjab. These partnerships have been crucial in developing the infrastructure required to bring this innovative feature to market.
https://www.biometricupdate.com/202408/apis-for-idv-key-to-digital-transformation-in-pakistan-and-iran
Pakistan and Iran both have been making strides towards digital transformation, with their national initiatives playing a crucial role. In Pakistan, the National Database & Registration Authority (NADRA) recently launched the beta version of Nishan Pakistan to empower startups and entrepreneurs by leveraging the country’s digital identity infrastructure. Through an application programming interface (API) authentication gateway, Nishan Pakistan provides secure, contactless biometric verification that enables business entities to easily incorporate themselves into NADRA data. This initiative is expected to revolutionize the market as it opens up diverse application areas ranging from customer identification to creating new markets within the country.
Similarly, Iran’s authentication API, Unique Identification (U-ID) platform, which was developed by Binesh Houshmand Nasl Phoror, is at the forefront of digital identity and biometrics technology. In addition, it serves as a secured digital identity platform for Android and iOS to have immediate digital authentication that has been made with high precision and accuracy. Its application has been widespread within Iran’s law enforcement community, evolving into one of the most important components of the national digital infrastructure. Both platforms highlight the growing significance of digital identity in driving economic growth and societal transformation respectively in their respective countries.
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Nishan Pakistan
Launched by the NADRA, Nishan Pakistan is an innovative platform aimed at supporting entrepreneurial ideas and providing safe biometric authentication services. The program functions as a hub for all digital activities in the country, including desktop and contactless biometric verification linked to data acquisition. To address such issues, Nishan Pakistan provides an API gateway and sandbox environment, which significantly facilitates its integration into existing business systems. It is still in beta testing and the user acceptance phase, with encouraging feedback likely to boost its uptake across the expansive digital market of Pakistan.
Pakistan and Iran’s UID
By leveraging biometric data, Iran’s UID service and Pakistan’s Nishan platform both aim to enhance security and expedite identity verification. These initiatives offer secure and efficient authentication services to the corporate and government sectors and are intricately connected to the corresponding national digital infrastructures.
As for Nishan Pakistan, it works out an inclusive API gateway that backs up multiple biometric verification options, including contactless biometric verification; however, UID in Iran stresses the technology of liveness detection in its facial recognition on online background, especially in law enforcement situations. Unlike UID’s application, which is concentrated on law enforcement and government agencies, Nishan Pakistan’s approach is more API-driven for businesses and startups to be able to facilitate wider adoption while ensuring convenience, whereas UID’s application is more centralized. Additionally, Nishan Pakistan aims to enhance user experience through easy integration. with the existing systems, while UID focuses on offline authentication through advanced encryption techniques catering to different user needs, thus indicating a divergence between accessibility and application scope.
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Digital identity platforms Nishan Pakistan and Iran’s UID are both two early-stage programs that are on their way to becoming digitally transformed. These projects may still be inexperienced; however, they could contribute significantly towards security improvement, economic development, and global digital public infrastructure.
https://propakistani.pk/2024/07/30/usf-invested-rs-79-billion-in-rural-telecom-expansion-in-last-five-years/
The Universal Service Fund (USF) has launched 85 projects worth Rs. 79.1 billion in the last five years to expand telecommunication services to rural, remote, and underserved areas of Pakistan.
According to a document seen by ProPakistani, in the last five years, USF has focused on providing 3G/4G services, launching 67 projects worth Rs. 51.4 billion. This effort has resulted in the installation of 2,600 telecom towers, covering 922 kilometers of highways and motorways, and connecting 27 tourist destinations across Pakistan.
USF’s efforts have made a significant impact, serving 24.2 million people in over 12,600 mauzas. The organization has also completed 18 optical fiber cable projects worth Rs. 27.7 billion, laying 10,260 kilometers of fiber to connect more than 926 union councils and towns.
According to the USF, the expansion of telecommunication services has far-reaching implications for the country, enabling greater connectivity and access to information. USF’s initiatives have bridged the digital divide, bringing modern communication services to previously unserved and underserved areas.
Through its projects, USF aims to promote digital inclusion and socio-economic development in Pakistan. By providing reliable and high-speed internet access, USF is empowering communities and driving economic growth in the country’s most remote and rural areas.
https://www.thenews.com.pk/print/1234879-visa-s-leila-serhan-says-pakistan-presents-significant-opportunity-for-digital-payments
KARACHI: Senior Vice President and Group Country Manager for North Africa, Levant and Pakistan (NALP) at Visa Leila Serhan highlighted the importance of cybersecurity measures in promoting the growth of digital payments in Pakistan during an interview with The News.
Following are excerpts of her conversation:
Q: What initiative is Visa taking to safeguard users and support partner banks to combat fraud and cybercrime in Pakistan?
A: Cyber security is a top priority for anyone in the financial services industry, especially for Visa. We provide cutting-edge artificial intelligence-powered risk and fraud management solutions to our users and partner financial institutions, which greatly assist in every step of the transaction process.
The technologies like tokenization not only enhance user experience but also strengthens security by converting the 16-digit card number into a token, significantly improving security. Visa aims to introduce tokenization technology to all its partners and the entire ecosystem to safeguard consumer data.
In Pakistan, security and fraud issues, such as social engineering, are common when making digital payments. Therefore, there is a need to educate users not to share their online transaction processing data or card information via email. Furthermore, the user card verification value is confidential and should not be shared with anyone.
Visa recently announced a strategic partnership with 1Link, the country’s largest payment service provider, to simplify remittances in the country and promote digital transactions. The partnership involves integrating the Visa Alias Directory Service within the 1LINK network to streamline incoming remittances, enhance user experience and protect sensitive payment credential information.
Remittances are crucial for the Pakistani economy, as the country is one of the top 10 remittance-receiving nations in the world, according to World Bank data. Visa has simplified the remittance process, allowing individuals whether in the United Arab Emirates, Saudi Arabia or any other market to send money back home to their parents or family using a mobile number. The Visa Alias directory facilitates fast and secure transactions, and users can conveniently send and receive money directly from their mobile phones.By providing a seamless user experience and ensuring convenience, security, and cost-effectiveness in remittance transactions, efforts are made to discourage the use of illegal remittance flows to the country. This is one of our key objectives.
Q: What efforts is Visa making to increase the acceptance of contactless payments by small businesses?
A: We are collaborating closely with banks and other stakeholders to offer customized financial products and low-cost acceptance solutions, enabling small and medium enterprises (SMEs) to accept payments in a cost-effective manner. Tap-to-phone is a key part of our strategy, and we aim to expand the reach of small and micro enterprises able to accept digital payments by 10 times. We are forming numerous partnerships to promote financial literacy, expand small businesses and enhance consumer financial inclusion.
Q: How does Visa collaborate with government entities like the State Bank of Pakistan?
A: We have had a very positive dialogue with the State Bank of Pakistan. It is great that there is an active dialogue and partnership between the government and companies like Visa in the private sector. We constantly discuss how to improve the consumer experience in Pakistan, both domestically and internationally.
https://www.weforum.org/videos/edisonalliance-pakistan/
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https://www.sbp.org.pk/Finc/AMAscheme.html
Through the Asaan Mobile Account (AMA) platform, any Pakistani holding a valid CNIC can open a bank account digitally in any AMA participating bank, from anywhere, at any time by using the SIM of any mobile operator. The scheme allows individuals to access AMA platform using a short code i.e *2262# and make transactions, through their basic/smart mobile phone without the need for internet connectivity.
Asaan Mobile Account (AMA) platform is a revolutionary initiative undertaken by State Bank of Pakistan (SBP) and Pakistan Telecommunication Authority (PTA), in collaboration with branchless banking (BB) providers, telecom operators and other development partners. The AMA platform has been launched under the National Financial Inclusion Strategy (NFIS) that aims to facilitate general masses, especially the low income segments, to digitally open their BB accounts and use the available financial services in a swift, easy and affordable manner.
https://dailytimes.com.pk/1223991/chinese-firm-to-invest-2-billion-in-pakistan-for-deployment-of-optical-fiber/
According to a Gwadar Pro’s report, the cable will be laid from Karachi to Peshawar along the Main Line-1 (ML-1).
Pakistan Railways has inked an agreement with the company Sunwalk Ltd. to allow it to deploy optical fiber cable.
Pakistan Railways has stated in a statement that the Chinese company has deposited Rs205.60 million in advance.
A Pakistani company was also allowed the same facility, which has deposited Rs130 million in advance, Pakistan Railways said.
The agreements are for three years, which could be extended, it added.
CEO of Pakistan Railways Amir Ali Baloch signed the agreements on behalf of Pakistan Railways.
According to an earlier statement of Pakistan’s Ministry of Information and Technology, Sunwalk intends to invest up to $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over 8-10 years.
The company has already acquired a Telecommunication Infrastructure Provider (TIP) licence in Pakistan, and has also invested $5 million so far, according to the statement.
Freight Rail: Pakistan can be a beneficiary of BRI’s economic fortunes as Chinese companies are proposing an extension of China-Europe
Freight Rail from Kashgar, China inland city to Gwadar, port city of Pakistan.
“We expect there can be a rail network from Kashgar to Gwadar as it will benefit both China and Pakistan,” said Li Tao, Publicity department of China-Europe Railway Express Xi’an Assembly Line, according to Gwadar Pro.
During interaction with Pakistan’s media delegation in Xi’an, Li said that logistics between the two countries relys on a route from Kashgar to Pakistani cities through road transportation, but such bilateral trade volume driven by roadways is low and scanty.
Compared to rail, road transportation is quite expensive, difficult and slow due to traffic congestion and other road-related hiccups.
Most of Chinese companies are eager to see expansion of China-Europe Freight Rail from Kashgar to Gwadar, he further said.
“The Belt and Road Initiative (BRI), introduced in 2013, bolstered the China-Europe freight train service. The initiative enhanced trade and connectivity between China and countries along the ancient Silk Road, including Europe.
Consequently, the China-Europe freight train service has become a critical part of BRI, facilitating trade and fostering economic ties between the two regions,” he mentioned.
According to China State Railway Group Co., Ltd (China Railway), the freight train service network currently reaches 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries, covering almost the entire Eurasian continent.
Moreover, the trains have transported more than 1.08 million twenty-foot equivalent unit (TEU) containers of goods this year, up 11 percent yearly.
https://www.biometricupdate.com/202412/pakistan-law-proposed-to-transform-digital-identity-system-and-governance
Key features of the Act
The construction of a national digital identity system is a key component of the Act, which intends to provide every Pakistani citizen with seamless access to important services. This digital identity system will include a variety of services, such as birth certificate renewals, educational records, health records, and digital wallets, to enable further digital interactions.
Under the Act, the NDC and PDA will create a comprehensive digitization master plan that will serve as the foundation for sector-specific digital strategies. The plan will be made public to engage the private sector, which is expected to drive and benefit the most from the digitization agenda.
Benefits, privacy, and accountability
The Digital Pakistan Act is designed to transform public service delivery by removing long queues and bureaucratic delays. Every citizen’s digital identity will be stored in an online database, and all assets will be available through digital wallets to avoid exhausting delays for services such as degree attestation and passport applications by combining them into a single platform.
The proposed digital infrastructure will empower data interoperability, allowing for smooth communication among organizations, according to the government. For example, property transactions will be automatically updated by tax authorities FBR, and healthcare providers will have secure access to patient records through digital identity standardized channels with a strong emphasis on data privacy and security.
On the economic front, the program aims to foster a cashless economy leveraging digital wallet technologies to formalize the informal economy, increase transparency, and improve government tax collection. Citizens will also profit from creating digitized financial records, which will make it easier to acquire bank loans and government incentives.
In addition, the Pakistan PDA would prioritize the implementation of plans to digitize Pakistan’s economy and governance to increase efficiency and enable paperless governance across all sectors.
The Act draws inspiration from successful digital transformation strategies in nations such as the United Arab Emirates, India, Estonia, and Singapore, while avoiding worries about mass surveillance. Officials have stressed their strong commitment to data privacy and security. Digital rights organizations will be actively involved in addressing any issues and ensuring citizens’ rights are respected. This ambitious effort has received significant funding from a $78 million World Bank project called the Digital Economy Enhancement Effort (DEEP). Implementation of the Act’s provisions is expected to commence in January.
https://tribune.com.pk/story/2517994/new-undersea-cable-to-boost-pakistans-internet-speed
Pakistan is set to benefit from a significant upgrade to its internet infrastructure with the installation of a new undersea cable connecting the country to Africa.
The 45,000-kilometre cable, part of the 2Africa Pearls project, is expected to enhance Pakistan's internet speeds and reliability once it goes live in the coming days.
The cable, which boasts a capacity of 180 terabits per second, is part of a broader effort to improve connectivity between Africa, the Middle East, and South Asia.
Pakistan is one of 33 countries involved in the 2Africa project, which includes 46 landing stations across the globe.
The cable is expected to double the country’s digital bandwidth, providing much-needed relief to users struggling with slow internet speeds, Express News reported.
The new cable is set to address Pakistan's persistent internet speed issues, particularly affecting platforms such as Facebook, WhatsApp, and Instagram.
Currently, the country relies on around 8 terabytes of bandwidth from existing cables, which has not been sufficient to meet growing demand for fast internet. With the additional 24 terabytes of bandwidth from the new cable, users can expect smoother online experiences, especially for social media apps.
In recent months, slow internet speeds and frequent outages have led to frustrations among Pakistan's internet users, particularly affecting the freelancing community.
The increased reliance on Virtual Private Networks (VPNs) to bypass content restrictions has also contributed to slower speeds, according to the government.
Pakistan's digital capacity is expected to nearly double next year with the addition of four more major internet lines, including those for 5G services.
Recently, Minister of State for Information Technology, Shaza Fatima, acknowledged that the country's internet speed does not meet international standards.
The issue of slow internet speeds was also raised in the National Assembly, where the Pakistan Peoples Party (PPP), a coalition partner, expressed strong discontent.
Member of Parliament Shazia Marri criticised the government's Digital Nation Billhighlighting the contradiction between claims about digital development and the reality of inadequate internet speeds.
Although Pakistan Peoples Party (PPP) has been buttressing the Pakistan Muslim League-Nawaz's (PML-N) government in the centre, it finds the latter's policies shorn of a vision to tackle the menacing problems of climate change and granting digital rights to the citizens.
Bilawal critiques govt over digital rights
PPP Chairman Bilawal Bhutto Zardari, while addressing the Sindh University's Convocation in Jamshoro on Monday, fired a broadside against the government, urging the youth to throw their weight behind him for securing their digital rights.
https://www.dawn.com/news/1882579
ISLAMABAD: The Pakistan Bureau of Statistics (PBS) on Wednesday initiated field operations for the country’s 7th Agricultural Census, employing digital tools to collect vital data for evidence-based policies aimed at sustainable farming and food security.
At a launch event in Islamabad, Planning Minister Ahsan Iqbal distributed tablets to trained enumerators, emphasising the role of technology in ensuring accurate and efficient data collection.
Ceremonies were also held in several other cities, including Lahore, Karachi and Peshawar.
The PBS has trained 7,686 enumerators and supervisors nationwide for this purpose. Data collection will take place over 40 days, from Jan 1 to Feb 10, 2025, which will be pivotal in shaping policies to address food insecurity and enhance agricultural resilience. The results are expected to be compiled by August.
This census, to be conducted in collaboration with federal and provincial governments, academia and related departments, aims to provide comprehensive insights into the country’s agrarian landscape.
Planning Minister Ahsan Iqbal described agriculture as the backbone of the economy, significantly contributing to GDP, exports and employment.
He noted that the data gathered from this census would play a vital role in shaping policies that tackle key challenges like resource management, crop patterns and food security. He further emphasised that the data would enable targeted support for the agricultural community, encouraging initiatives to increase productivity and enhance the welfare of farmers.
He reiterated the federal government’s commitment to ensuring that farmers across the country receive the resources and support they need for sustainable growth. He stressed that the 7th Agricultural Census was a historic step towards economic reforms and data-driven policymaking.
The minister also appreciated the modernised approach and centralised GIS technology for real-time monitoring. This will streamline data collection and analysis, enabling targeted interventions and effective resource allocation.
The initiative aligns Pakistan’s agricultural practices with global standards and seeks to enhance productivity and food security.
PBS’s focal person for the agriculture census, Sarwar Gondal, said that a decade overdue activity had been initiated by the bureau with its extensive network of 34 regional and 125 district offices.
https://www.biometricupdate.com/202501/pakistan-digital-identity-governance-changes-to-bridge-gaps-eliminate-overlaps
Pakistan’s journey toward a unified digital identity framework is proving complicated, with overlapping obligations and a fragmented system. The government plans to resolve these challenges with the strategic Digital Nation Pakistan law and the National Registration and Biometric Policy Framework (NRBPF). However, recent developments have revealed trouble coordinating efforts between the Ministry of ICT and Telecommunications and the Ministry of Interior.
The Digital Nation Pakistan initiative represents a transformative approach to governance. The government intends to provide seamless digital services by harnessing technology to create an interconnected infrastructure. However, uncertainties remain about its compatibility with current frameworks, such as the National Database and Registration Authority’s (NADRA) demographic registration and biometric systems. These issues arose during a meeting hosted by Prime Minister Shehbaz Sharif.
Similarly, a recent podcast by independent journalists highlighted challenges that can face newly passed laws based on the digital identity of every citizen in Pakistan. Exploring the weakest regulatory frameworks and accessibility gaps that obstruct NADRA’s extent. It emphasized the version where the citizens cannot access important services due to systemic incompetence, underscoring the urgency for reformation. The Digital Nation Pakistan initiative will achieve momentum, and presenting these real-world issues will be critical for its success.
Challenges in registration and biometric systems
One of the key concerns raised by the minister of state for information technology and telecommunications is the possibility of function duplication under the planned “Digital Nation Pakistan” law, The Express Tribune reports. NADRA, established in 2000, has long served as the backbone of Pakistan’s identity management. The Ministry of Interior promised the cabinet that any overlaps would be addressed in coordination with the Ministry of ICT. However, insufficiencies in its legal structure and limited outreach have made it challenging to effectively serve the entire population. Citizens are currently responsible for reporting vital incidents, which should ideally be managed by state authorities.
Moreover, differences between NADRA data and data held by union councils pose further issues. Biometric systems in the country operate autonomously, with no established regulations for data storage and sharing.
The CNIC chip, contained in Pakistan’s national digital identity cards, is also underutilized. Without accompanying infrastructure, individuals are forced to use multiple cards for various services, weakening the technology’s potential.
https://profit.pakistantoday.com.pk/2025/01/13/google-pay-to-launch-in-pakistan-by-march-2025/
Service to enable Pakistani users to link their bank-issued debit and credit cards to Google Pay for seamless contactless payments
Google Pay, the global contactless payment platform, is set to officially launch in Pakistan by mid-March 2025, marking a significant milestone in the country’s expanding digital payment landscape.
According to sources, the rollout, confirmed by Google in November 2024, will be facilitated through collaborations with Visa, Mastercard, and leading local banks.
The service will allow Pakistani users to link their bank-issued debit and credit cards to Google Pay via the Google Wallet app, enabling seamless contactless payments at compatible terminals.
While the launch will focus initially on enabling basic contactless payments, the full suite of Google Wallet features, including loyalty cards and public transport passes, will not be available in the first phase.
Sources confirmed that preparations for the launch are well underway, with four to six prominent banks working closely with Visa and Mastercard to meet technical requirements.
Pakistan’s payment infrastructure is well-positioned to support the service, boasting 133,000 point-of-sale (POS) terminals, 99% of which are already equipped to accept mobile contactless payments, according to the State Bank of Pakistan.
Industry experts see Google Pay’s entry as a boost for Pakistan’s burgeoning digital payments sector, which has witnessed rapid growth in recent years. According to Profit’s analysis of data published by the State Bank of Pakistan, electronic payments now account for 9.3% of the total value of all transactions that take place in the country, a number that has doubled over the past two years.
The launch of a digital application like Google Wallet, which is compatible with payment cards of any financial institution will accelerate the expansion of digital payments through POS machines and e-commerce websites.
https://ibsintelligence.com/ibsi-news/mastercard-joins-foodpanda-to-fuel-digital-payments-in-pakistan/
Mastercard has collaborated with foodpanda, a Delivery Hero-owned online food and grocery delivery platform, to boost digital payment in Pakistan and support the nation’s transition toward a cashless economy.
This collaboration with one of Pakistan’s delivery platforms highlights Mastercard’s commitment to advancing financial inclusion and strengthening the country’s digital ecosystem.
According to data from the State Bank of Pakistan, currency in circulation (CIC) in the country increased by 11.2% during the first half of 2024. By addressing the gap between cash and digital payments, Mastercard and foodpanda are positioned to accelerate digital payment adoption, enabling the growth of a cashless economy and fostering inclusive prosperity in one of the region’s most dynamic markets.
The partnership introduces initiatives designed to encourage the use of digital payment methods over cash on delivery (COD). By leveraging foodpanda’s extensive network, Mastercard will drive awareness and usage of secure, rewarding payment options for millions of consumers across the country.
“By combining our global expertise in seamless and secure payment technologies with foodpanda’s vast reach, we are making digital payments more accessible and convenient for consumers across the country. This collaboration marks a pivotal step in our efforts to drive the shift to digital payments in Pakistan and fuel the growth of the country’s digital economy,” said Muhammad Nana, Senior Vice President of Digital Partnerships, EEMEA, Mastercard.
“With high smartphone penetration and robust digital infrastructure, Pakistan is primed for rapid adoption of cashless solutions. Our partnership with Mastercard enables us to accelerate this transformation, turning COD users into active digital consumers. As we serve a significant percentage of the population, this initiative reflects our commitment to innovation and financial inclusion in untapped markets,” said Muntaqa Peracha, CEO, foodpanda Pakistan.
Additionally, Mastercard and foodpanda launched the Payment Switch initiative, which aims to convert COD users to online payments, boost Mastercard’s reputation as the preferred payment method, and drive customer trials through exclusive vouchers. This feature enhances conversion rates at the critical decision point of placing orders, thereby triggering a switch to online payments from COD via Mastercard.
https://www.biometricupdate.com/202501/looking-into-the-deep-advancing-pakistans-dpi
Pakistan is progressing toward a digitally empowered society, with initiatives such as the Digital Economy Enhancement Project(DEEP) playing a crucial role. According to a press release by the National Database and Registration Authority (NADRA), on January 23, in Islamabad, NADRA hosted a high-level World Bank delegation that included Martin Raiser, Vice President for the South Asia Region, and Najy Benhassine, Country Director for Pakistan. The conversation focused on DEEP, a transformative effort to strengthen Pakistan’s digital economy and digital identity systems.
DEEP, a World Bank-funded project coincides with the Digital Pakistan Policy and aims to transform how the government delivers services to citizens and businesses. The initiative aims to improve financial inclusion, ease access to government services, and promote economic prospects by developing strong digital public infrastructure (DPI).
The World Bank delegation praised NADRA’s progress in the implementation of DEEP, emphasizing its essential role in Pakistan’s digital transformation. The project is focused on creating responsible data-sharing protocols, digital authentication systems, and verifiable credentials. These components seek to increase accessibility, public service delivery, and social protection. This collaboration emphasizes the importance of international partnerships in accelerating national progress toward a digital economy.
Advancing DPI with DEEP
DEEP is a World Bank-assisted project to enhance the government’s capacity for digitally enabled public service delivery for citizens and businesses. While also building a more equitable economic framework by promoting an integrated, government-wide digital infrastructure. It promotes the creation of responsible data-sharing networks and strong digital authentication technologies, assuring secure and verified credentials.
The government’s goal with DEEP is to digitize governmental services, making them more accessible to citizens and companies. This transition is projected to drive economic growth, improve social protection systems, and expand financial inclusion, particularly among marginalized populations, Dawn News reports.
NADRA’s leadership
NADRA has played a significant role in Pakistan’s digital transformation under the DEEP initiative, reaching remarkable milestones such as the integration of crucial government services to allow citizens seamless digital access. NADRA is developing a single digital ecosystem to ensure efficient service delivery under the Digital Pakistan Policy. The World Bank’s support demonstrates global trust in this endeavor to improve infrastructure, data interchange, and digital identity for a more robust digital economy.
Digital Pakistan
The World Bank project DEEP aims to fill Pakistan’s digital gap, fuel economic growth, and ensure unbiased access to digital services for citizens. DEEP is aligned with the 2018 Digital Pakistan Policy, which emphasizes a comprehensive enterprise architecture and the integration of government databases. It focuses on broadband expansion, enabling policies, and legal frameworks to assist the digital economy. The project’s strategy is to improve public service delivery by modernizing digital public infrastructure, which includes a secure data exchange layer, digital wallets, and authentication methods. NADRA, the Ministry of Information Technology and Telecommunications (MoITT), and the Board of Investment (BoI) are key implementation agencies. DEEP, with financial and technical support from the World Bank, assists Pakistan in transitioning to a sustainable and inclusive digital economy by dealing with systemic obstacles and supporting digital transformation.
https://www.biometricupdate.com/202502/pakistan-advances-national-id-biometric-policy-frameworks
Pakistan has made significant advancements in transforming its digital identity ecosystem. The National Database and Registration Authority (NADRA) continues to undertake efforts aimed at improving security, innovation, and accessibility. The government has also announced the National Registration and Biometric Policy (NR&BP) framework, which aims to mitigate the basic identity gaps in the country’s management system, such as registration anomalies, data security problems, and accessibility issues.
NADRA has also collaborated with key higher education institutions(HEIs) to stimulate innovation in biometrics, artificial intelligence (AI), cybersecurity, and data analytics. This partnership will contribute to the development of cutting-edge identity verification systems as well as simplify the national registration processes.
Moreover, the government of Pakistan has amended the NADRA (NIC) Rules of 2002 in Ordinance 2000 to provide for the issuance of digital identity cards to special persons and organ donors for life, which facilitates further inclusion and streamlining of the identity system. Collectively, these measures reflect the determination of Pakistan to achieve a unified, safe, verifiable digital identity system that is research-based and compliant with global standards.
The national registration and biometric policy
Pakistan has taken major steps in the scope of digital identity to strengthen its biometric and digital identity ecosystem with the launch of the National Registration and Biometric Policy NR&BP, which was officially announced by the federal government last month and seeks to address fundamental flaws in the country’s identity management system, providing a safe, unified, and efficient registration mechanism.
The framework identifies basic challenges; key ones are systematic disintegration, legislative inconsistencies, and limited accessibility, which have resulted in low registration rates, identity fraud, and data discrepancies. To address these issues, NR&BP works on integrating NADRA’s digital infrastructure with provincial Civil Registration Management Systems (CRMS), creating a streamlined identity verification process.
The policy includes the expansion of biometric assortment and verification at the union council level to tackle identity theft, which allows for secure and real-time identity authentication to combat identity theft and fraudulent registrations. In addition, NR&BP will implement a digital ID system to encourage interagency collaboration among government departments and business enterprises. This policy will also contribute towards achieving the United Nations Sustainable Development Goal (SDG) 16.9, which aims to provide legal identity for all.
The National Implementation Committee NIC, chaired by the NADRA chairman, is managing the charge of the strategic execution of this initiative, while the National Steering Committee, led by the interior minister, provides overall policy guidance. Representatives from key ministries, IT boards, and financial regulators are actively engaged in ensuring the policy’s successful nationwide adoption.
The NR&BP, with its strong emphasis on biometric integration and digital identity protection, is envisioned to improve governance, national security, and public service delivery, positioning Pakistan at the forefront of digital transformation.
NADRA’s collaboration with higher education institutions
Recognizing the need for innovative research in biometrics, AI, and cybersecurity, NADRA has partnered with 15 of Pakistan’s best universities to advance innovation in digital identity management. According to the NADRA press release, this collaboration, through official Memoranda of Understanding (MoUs), would promote research and development (R&D) and talent development in identity technologies, ultimately boosting Pakistan’s digital infrastructure.
IT exports soar as digital transformation accelerates
https://tribune.com.pk/story/2532564/it-exports-soar-as-digital-transformation-accelerates
Key achievements include record IT exports of $3.223 billion in FY 2023-24, reflecting a 24% increase. Broadband penetration surged by 5%, benefiting over 139 million subscribers. Policies supporting AI, cloud computing, and digital entrepreneurship are empowering startups and freelancers.
The Digital Economy Enhancement Project (DEEP) is expanding digital infrastructure, boosting IT exports, and enhancing digital skills. Pakistan now ranks in Tier 1 of the Global Cybersecurity Index and has improved its standing in the UN E-Government Development Index.
The adoption of e-office solutions has cut decision-making time by 70%, streamlining governance. The launch of the Hajj App and One Patient One ID system has enhanced public service efficiency.
Over 600,000 individuals have been trained under DigiSkills.pk, equipping the workforce with essential digital expertise. More than 166 startups have emerged, generating 5,000+ jobs and attracting Rs260 million in investments.
Pakistan is gearing up for 5G with a scheduled spectrum auction and the National Fiberisation Policy. Broadband expansion has benefited 4.1 million people, while regulatory reforms and the introduction of Wi-Fi 6E and the National Space Policy are paving the way for next-generation connectivity.
Pakistan has introduced key policy frameworks to strengthen its digital ecosystem. Provinces, including Gilgit-Baltistan and Azad Jammu Kashmir, have adopted Cloud First Policy (PCFP). National AI & Semiconductor Policies, finalised to accelerate Pakistan's entry into advanced technology sectors.
Mastercard has signed a multi-year agreement with Mashreq to support the company’s launch as a digital bank in Pakistan.
The State Bank of Pakistan granted Mashreq Pakistan a restricted licence for pilot operations as part of the government's strategy to optimise the country’s digital potential and provide greater access to financial services for underserved communities.
https://thepaypers.com/online-mobile-banking/mashreq-partners-with-mastercard-to-become-a-digital-bank-in-pakistan--1272606
Mashreq to become a digital bank in Pakistan
This collaboration introduces modern digital services to individuals and businesses that aim to help grow the digital economy, accelerate digital payment adoption, and drive financial inclusion in Pakistan.
The partnership highlights Mastercard’s and Mashreq’s shared vision to support Pakistan’s growth by offering better customer experiences and financial accessibility. By leveraging Mastercard’s collaboration, Mashreq has access to improved efficiency, reliability, and security across card products for both businesses and consumers. The company aims to simplify payments through fast and secure transactions, improve service delivery that supports financial growth, and drive mutual value and financial support.
Through this collaboration, Mastercard aims to develop the financial service ecosystem in the country and aid Mashreq with its launch as a digital bank in Pakistan. This move will transform the digital economy and broaden access to digital financial services across Pakistan.
Pakistan’s transformation plans
Vision 2025 was a plan launched in 2014 by the Government of Pakistan to guide the country’s socio-economic development. It focused on seven pillars, including developing human and social capital, achieving sustained and inclusive growth, strengthening governance and institutions, ensuring sustainable resources, boosting innovation, optimising education, and expanding trade routes. However, the plan faced challenges in implementation, and political changes impacted its continuity.
Another framework emerged in 2024, which aims to transform Pakistan into a USD 1 trillion economy by 2035. Key objectives include increasing exports from USD 30 billion to USD 100 billion within eight years and implementing efficient energy solutions to meet future demands.
The website lets salaried individuals file tax returns easily without hassle.
https://www.dawn.com/news/1447398
Pakistan is experiencing a transition in terms of its economic situation with the new government stepping in.
One of Pakistan's core challenges for economic sustainability is the country’s tax collections and tax to GDP ratio, which is one of the lowest in the world and subsequently encouraging the current economic crisis.
One of the top priorities for the new government is to substantially increase the number of tax filers, from current dismal number of approx 1.3 million to at least three times of the current situation.
It is for this reason that as per the government’s fiscal policies incorporated in the budget for current fiscal year, provisions have been made in the Income Tax Ordinance 2001 to ensure penalties and entail serious ramifications for individuals fail to file their returns.
Apart from these provisions, which prohibit non-filers from purchasing any property or motor vehicles, non-filers end up paying relatively higher amount of taxes, all the while exposing themselves to significant penalties on their way.
What is BeFiler.com?
BeFiler.com is Pakistan's first online tax portal for preparing tax returns.
The portal is an online tax return preparation system where anyone can sign up, and prepare income tax return within minutes, by answering few simple questions, and entering relevant details.
https://www.dawn.com/news/1897434
Digital wallet app Google Wallet became available in Pakistan on Wednesday, according to a statement issued by the tech giant.
According to the statement, Google Wallet provides people a safer, simpler, and more helpful payment experience. It also supports digital items such as loyalty cards and boarding passes. Users can get started by downloading the application through the Google Play Store.
“Pakistan’s digital payments landscape is evolving rapidly, and with more people embracing digital transactions, Google Wallet provides a secure, seamless, and efficient way to make payments, shop, and travel,” said Farhan Qureshi, Country Director for Google Pakistan.
“It will enable Pakistanis to tap-and-pay in stores, check out seamlessly online, and easily access their boarding passes when they travel,” he added.
“Google Wallet helps keep everything protected in one place, no matter where they go. More importantly, this launch will go a long way in supporting financial inclusion in Pakistan and unlock economic opportunities for all,” Qureshi continued.
“This milestone further cements Google’s unwavering commitment to Pakistan, reinforcing our belief in its digital future and potential.”
From today, cardholders of Bank AlFalah, Bank of Punjab, Faysal Bank Noor, HBL, Jazzcash, Meezan Bank, and UBL will be able to add their cards to Google Wallet and pay with their Android phones or Wear OS devices — wherever contactless payments are accepted.
Additionally, cardholders of Allied Bank, easypaisa Digital Bank, JS Bank and Zindigi will be able to add their cards to Google Wallet soon. Payment cards from Google Wallet can be used to pay online or in-app at merchants.
The statement read that online merchants such as Onic, Gul Ahmed, Sana Safinaz, J. and KE will also be available with PayFast’s integration with Google Pay.
In addition to storing and accessing payment cards, users can add boarding passes from Batik Air and Thai Airways to Google Wallet. With boarding passes in Google Wallet, travellers will be notified of changes to departure time and gate changes to ensure a hassle-free experience at the airport.
Furthermore, they will be able to tap and pay securely using Google Wallet during their overseas travel, without the need for their physical card.
If a user already has an eligible credit or debit card saved to their Google account, it will automatically appear in Google Wallet. Simply follow the on-screen steps to set it up for contactless payments.
If a user does not have a card saved and would like to add a new one, they would have to tap “Add a card” in the carousel at the top of the page, review and accept the issuer’s terms and conditions, and complete the verification process. The card will then be tokenised and ready for use in Google Wallet.
Similarly, Bookme.pk users can add boarding passes, bus, train, and event tickets, while Sastaticket.pk users can save their boarding passes into Google Wallet.
Users can start to add digital items such as boarding passes, bus, train, and event tickets into their Google Wallet.
According to the statement, privacy and security are the cornerstones of Google Wallet, “offering industry-standard tokenisation to keep transactions safe”.
When making a payment, Google Wallet uses an alternate card number (a token) that is device-specific and associated with a dynamic security code that changes with each transaction.
Banks also require verification before adding a card to the user’s device, and screen lock protection ensures that only the user can access the Wallet.
March 13, 2025 at 10:05 AM
By Godfrey Mwirigi
https://themarketperiodical.com/2025/03/20/pakistan-to-legalize-crypto-trading-to-boost-foreign-investment/
Pakistan plans a legal framework for crypto trading to attract foreign investment.
The Pakistan Crypto Council will regulate blockchain integration.
The government aims to promote crypto adoption through structured policies.
Pakistan is preparing to introduce a legal framework for crypto trading to attract foreign investment and support its digital economy.
The move aims to establish clear regulations for digital assets, aligning with global trends and increasing interest in blockchain technology. Authorities expect the new framework to create a structured environment for crypto adoption while ensuring financial security and stability.
Pakistan Moves to Regulate Crypto Trading
Pakistan ranks among the top ten countries in global crypto adoption, with millions actively participating in crypto trading. Despite warnings from the central bank, crypto has gained widespread popularity in the country, which is the fifth most populous nation.
The government aims to regulate this fast-growing sector to create an environment that attracts international investors. The plan follows the recent appointment of Bilal bin Saqib as Chief Advisor to the Finance Minister for managing digital assets.
His role includes guiding policies on digital finance and advising on artificial intelligence for public sector efficiency. Meanwhile, Asian policymakers are showing increasing support for the digital assets industry, which is influenced by global trends.
Under President Donald Trump, the United States has prioritised crypto. This prompted other nations to reconsider their stance on the industry. Pakistan is responding by developing policies. That position the country as a competitive player in digital finance.
Pakistan Crypto Council to Establish Regulatory Standards
Pakistan recently launched the Pakistan Crypto Council (PCC) to oversee blockchain integration, digital finance operations, and crypto trading. The council will work on policy development, compliance structures, and consumer protection.
It aims to establish a secure framework for crypto adoption while ensuring financial stability. The leadership includes Finance Minister Muhammad Aurangzeb as chairman and Bilal bin Saqib as CEO.
The council will engage international organisations to ensure the regulations align with industry standards. The government believes their involvement will help establish a legal framework to protect investors. This initiative aims to promote the responsible growth of digital assets.
The council’s board includes representatives from the State Bank of Pakistan and Pakistan’s Securities and Exchange Commission. It also features the Federal IT Secretary as a member.
Focusing on Digital Finance Development
With technological advancements and the rise of blockchain and cryptocurrency, Pakistan is leading efforts to enhance its digital economy. These innovations position the country as a key player in the global digital landscape.
Based on this foundation, the PCC aims to develop sustainable policies that encourage proper investments. It also seeks to provide adequate financial safeguards for the growth of digital assets.
The council will engage with fintech startup firms, investors, and Blockchain developers to promote industry growth. The initiative fits into Pakistan’s strategic direction of using digital finance to advance the country’s economy.
Thus, state authorities expect strict legislation to enhance transparency and increase investment. The council will also work on developing blockchain-based financial solutions to increase security in the sector.
https://thediplomat.com/2025/03/pakistan-welcomes-starlink-but-can-it-deliver-on-its-promise/
Starlink could help close the urban-rural internet access gap — if the rollout is inclusive, affordable, and thoughtfully managed.
In Pakistan, the digital divide is not merely a technological issue; it is an economic and social barrier. While the country has over 142 million broadband subscriptions, nearly 99 percent are mobile-based, and fixed broadband penetration remains under 1 percent. Still, the economic potential is hard to ignore. Pakistan’s digital economy is steadily expanding – IT exports hit $3.2 billion in fiscal year 2024 – and more than 1.5 million freelancers are already contributing to global platforms from across the country. But most of that growth is happening in big cities.
In rural Pakistan, untapped talent remains offline, not by choice, but because the infrastructure simply isn’t there. Starlink could help close that gap – if the rollout is inclusive and thoughtfully managed. Starlink could empower a new generation of freelancers, online entrepreneurs, and remote workers in smaller towns and villages, provided access is widespread and affordable. The small and medium enterprise (SME) sector, which contributes nearly 40 percent of GDP and employs over 80 percent of Pakistan’s non-agricultural workforce, could benefit from stable, high-speed internet to adopt digital tools, cloud platforms, and e-commerce models.
Education stands to gain even more. Pakistan has over 22 millionout-of-school children, with the highest concentrations in regions that also suffer from poor internet access. Less than 15 percent of public schools nationwide are connected to the internet – and in rural areas, that number drops below 10 percent. In Balochistan, for instance, 65 percent of school-age children are out of school. During the COVID-19 pandemic, only a small percentage of rural households could access any form of digital learning. Starlink can change this equation by enabling digital classrooms, national curriculum portals, and virtual teacher training in regions where qualified educators are scarce or security risks prevent regular school attendance. Especially for girls in conservative areas, home-based online education could offer a culturally acceptable and practical solution to improve literacy and life outcomes.
The healthcare sector, too, is poised for transformation. Telemedicine has long been touted as a solution for Pakistan’s rural health deserts, but without broadband, its reach has remained limited. With Starlink, remote clinics in places like Chitral, Dera Bugti, or Tharparkar could finally access diagnostic platforms, connect with specialists in urban hospitals, and digitize patient records. This could reduce maternal mortality, improve early disease detection, and allow real-time responses to outbreaks – all without the need for new brick-and-mortar hospitals.
Yet the promise of Starlink is constrained by its cost. At present, Starlink’s projected pricing in Pakistan is approximately 35,000 Pakistani rupees per month (around $120), plus 110,000 rupees (around $375) in equipment costs. For perspective, the average rural household in Pakistan earns between 20,000–30,000 rupees per month. A typical 10 Mbps unlimited home broadband package costs around 1,500–2,000 rupees ($5-7) – affordable to urban middle-class households but often out of reach for rural families.
https://www.biometricupdate.com/202504/undp-highlights-inclusive-growth-potential-of-pakistans-ai-digital-identity-strategy
Pakistan is integrating artificial intelligence (AI) into its digital identity infrastructure to improve service delivery and security. According to UNDP’s Development Advocate Pakistan 2025, NADRA utilizes AI to improve identity verification processes, prevent fraud, decrease manual errors, and boost trust in digital systems. These activities contribute to broader objectives such as digital inclusion and secure access to financial and governmental services. The application of artificial intelligence in identity systems emphasizes Pakistan’s commitment to creating a more efficient and inclusive digital landscape.
The publication from UNDP highlights that Pakistan’s digital transformation strategy relies on artificial intelligence to modernize governmental services and infrastructure. AI is being used to streamline government processes, enable data-driven policymaking, and improve citizen-centric services, particularly in Punjab’s urban governance and public safety programs. AI helps to improve transparency, responsiveness, and inclusive governance by automating routine processes and increasing real-time decision-making. This aligns with Pakistan’s broader vision of being a digitally empowered nation.
The UNDP report explains how Pakistan is utilizing AI to expand e-governance by digitizing public documents and automating administrative activities. AI tools are being tested to improve transparency, efficiency, and service responsiveness. While the report emphasizes AI’s role in smart governance and public service delivery, it does not explicitly relate AI-powered platforms to digital ID-based ecommerce payments. However, one of the essays does cite statistics about the growth that can be unlocked with digital ID-linked digital payment services.
Pakistan is increasing investments in AI research and development to foster new industries, encourage entrepreneurs, and boost public-sector innovation. The government is pursuing AI integration with education, healthcare, agriculture, and governance systems to accelerate economic growth and boost digital competitiveness. Strategic relationships with universities and technology businesses are also being pursued to increase local AI capacity.
AI is being leveraged in Pakistan to promote digital financial inclusion, especially among the underprivileged population. AI technologies facilitate alternative credit scoring models, enabling financial institutions to evaluate creditworthiness without traditional credit histories. These technologies make loans, insurance, and customized financial services more accessible.
The UNDP report includes an interview with the Punjab Safe City Authority, which explores how AI is transforming public safety and citizen services. Artificial intelligence is being utilized to improve facial recognition, surveillance systems, traffic management, and emergency response. The Authority aims to create a secure and more efficient urban environment by analyzing real-time data while also strengthening government and public services.
In his article “AI for Development,” UNDP’s Robert Opp underlines the significance of AI in improving digital governance. He promotes the development of inclusive digital identity systems that can improve public service delivery and accessibility. The emphasis is on ensuring that AI-powered technologies advantage underprivileged communities, encouraging equitable development while protecting privacy and security.