MANILA: Pakistan Needs to invest to enhance digitalization of economy, and need to widely incentivizing universal connectivity among rural and low-income households. It also needs to rolling out capacity building schemes to enhance the skills of groups such as older people, low-income groups, and less-educated individuals, says an ADB report.
The Asian Development Policy Report 2025: Harnessing Digital Transformation for Good, released today, notes that while the region has made notable progress in digital development over recent decades, the gains have not been distributed equitably.
Low Digitalization (LD) economies must accelerate digital transformation by investing in digital infrastructure and skills.
While more than half of the population in Asia and the Pacific subscribed to mobile internet services—totaling more than 1.4 billion subscribers—significant gaps remain in economies like Bangladesh, India, and Pakistan, where 50% or more of the population is covered by mobile networks but has not subscribed to services due to various barriers.
Digital Technology
Digital technology holds immense promise for reducing long-standing economic inequality in Asia and the Pacific, but governments must act decisively to bridge key “digital divides”—particularly in infrastructure, access, and digital skills—according to the latest report from the Asian Development Bank (ADB).
For example, internet usage in urban areas outpaces rural access by 13 percentage points, and mobile internet speeds are on average 38% faster in cities than in the countryside.
Additionally, many of the region’s developing economies continue to lag in digital inclusion, with a significant portion of the population lacking the necessary digital skills to fully participate in an increasingly technology-driven world.
Despite strong growth and digital advances, economic disparity remains entrenched.
The report highlights that the region’s population-weighted average Gini coefficient—a standard measure of income inequality—was 6% higher in 2022 compared to 1990.
As of the latest data, around 18.9% of people in developing Asia are living below the poverty threshold of $3.65 per day.
“The region’s swift embrace of digital technologies offers a historic opportunity,” said ADB Chief Economist Albert Park. “By prioritizing inclusive and sustainable digitalization, governments can drive not just economic innovation and productivity, but also make meaningful progress in reducing inequality.”
Digital tools can enhance access to basic services like finance and education, helping marginalized communities participate more fully in economic life.
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For instance, small business owners can use digital platforms to access capital, markets, and networks previously out of reach.
Digital Solutions
Moreover, digital solutions can support climate adaptation by enabling advanced data analytics for disaster forecasting and the development of resilient agricultural practices.
To fully leverage the digital transformation, the report urges governments to develop comprehensive national digital strategies that explicitly embed goals of inclusion and sustainability.
It emphasizes the importance of locally tailored policies and multi-stakeholder engagement, involving the private sector, civil society, and international partners to ensure that digital benefits reach all segments of the population.
ADB underscores that such efforts are crucial to building resilience, advancing equity, and fostering sustainable development across the region.
Founded in 1966, the Asian Development Bank is a leading regional development institution focused on reducing poverty and fostering economic growth.
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With 69 member countries, including 50 from Asia and the Pacific, ADB supports its members through innovative financing, partnerships, and policy expertise aimed at transforming lives and protecting the environment.
