Islamabad, 16 July: Pakistan’s telecom sector is currently valued at $4.52 billion and is predicted to grow to $5.32 billion by 2029, according to an Asian Development Bank (ADB) report analysing Pakistan’s digital ecosystem.
Pakistanis’ holdings of digital currencies are estimated at $25 billion, signifying a significant level of crypto adoption and placing Pakistan eighth worldwide in terms of digital currency ownership.
According to the ADB report, growth is hampered by a lack of fibre-optic expansion and minimal investment in digital networks, largely due to political instability and policy delays over the past five years. The report states that Pakistan’s digital economy contributes only 1.5% to GDP, far below its potential. Fixed broadband penetration remains alarmingly low at 1.3%, one of the lowest rates in the region.
Pakistan also lags behind many countries in promoting 4G technology and has yet to roll out 5G services. One of the report’s most concerning findings is Pakistan’s continued delay in auctioning 5G spectrum, while 101 countries globally have already launched commercial 5G services. The government has also made no expenditures on 3G spectrum, highlighting further stagnation in network development.
The report draws attention to stark disparities in digital access, particularly for women and low-income groups. While 80% of the population is covered by mobile internet networks, actual usage remains limited. Mobile phone ownership stands at 86% for men and 53% for women, with internet access reaching only 53% of men and 33% of women.
The report highlights the need for policy reforms, increased investment in digital infrastructure, and targeted inclusion strategies to ensure a more equitable digital transformation in Pakistan.
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Pakistan is witnessing a transformation in its digital landscape, driven by cloud-based systems, hybrid work environments, and process automation. One of the key drivers of this transformation has been the rapid proliferation of mobile technology. As a strategic legislative initiative, the Digital Nation Pakistan Bill 2024 was passed in January 2025.
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The Digital Nation Pakistan Act 2025, enacted on 29 January 2025, established the Pakistan Digital Authority to oversee digital governance, drive innovation, and ensure the secure and efficient deployment of digital technologies across all sectors. The act also mandates the formation of the National Digital Commission (NDC), chaired by the Prime Minister and the four chief ministers, as the apex decision-making body responsible for setting Pakistan’s strategic direction for digital transformation.
