Islamabad, 22 April 2025: Pakistan’s digital rise is making headlines, but experts warn structural hurdles could stall its path to a trillion-dollar economy.
From agriculture to industry and informal markets, digitization has the potential to boost Pakistan’s GDP significantly.
In farming, technologies like drones, AI-based irrigation systems, and blockchain-enabled supply chains could triple agricultural exports and cut post-harvest losses by half.
Similarly, the digital overhaul of the industrial sector through smart manufacturing could add over US$100 billion to GDP and create millions of new jobs.
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Yet, the informal and shadow economies—estimated to form up to 65 percent of GDP—remain largely outside the digital net.
Their integration through mobile banking and digital wallets could add as much as US$225 billion to the economy annually by 2035.
Pakistan’s economy loses billions due to inefficiencies, often referred to as “sludge costs.”
Bureaucratic red tape and paper-based systems drain nearly 40 percent of GDP, but digitization could save time and billions in revenue.
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But digitization comes with its own challenges. Rural areas lack basic internet infrastructure, with just a third of the population enjoying reliable access.
Cybersecurity is also a growing concern, as Pakistan ranks low globally in preparedness. Compounding the issue, repeated internet shutdowns cost the country over a billion rupees daily.
To fully unlock the digital opportunity, analysts call for urgent investments in 5G infrastructure, digital literacy, and R&D.
Without such steps, the dream of a US$1 trillion economy may remain just that—a dream.
