ISLAMABAD: Pakistan is poised to capitalize on its growing youth population, expanding internet penetration, and thriving startup ecosystem to emerge as a significant player in the global digital economy.
As of the latest Economic Survey of Pakistan (2023-24), the country’s Information Technology (IT) sector contributes approximately US$ 2.6 billion annually to exports. To achieve its ambitious goal of reaching US$ 15 billion in IT exports over the next five years, experts emphasize the critical need for enhancing digital infrastructure and cultivating a skilled workforce.
Muhammad Zohaib Khan, Chairman of the Pakistan Information Technology Industry Association (PSHA), stresses the importance of modernizing the IT sector to meet international standards and improving internet connectivity across the nation. The government has allocated a historic amount of over Rs 79 billion in the 2024-25 budget, underscoring its commitment to bolstering the IT sector. Finance Minister Senator Muhammad Aurangzeb anticipates IT exports to reach US$ 3.5 billion this year, with plans to double this figure in the near future.
Pakistan has witnessed a significant increase in internet penetration, with 111.0 million users and 71.70 million social media users as of early 2024. The proliferation of cellular mobile connections, accounting for 77.8% of the population, provides a robust foundation for further digital economic growth.
The country’s startup ecosystem is gaining momentum, supported by incubators, accelerators, and co-working spaces in major cities like Karachi, Lahore, and Islamabad. Simultaneously, Pakistan’s e-commerce sector is expanding rapidly, driven by the rise of digital payments and the proliferation of online marketplaces. Ahsan Zafar Bakhtawri, President of the Islamabad Chamber of Commerce and Industry (ICCI), emphasizes the importance of government support in strengthening Small and Medium Enterprises (SMEs) and boosting the digital economy.
Pakistan also boasts a pool of skilled professionals in software development, graphic design, and content writing. Freelance platforms have enabled these professionals to access global markets, contributing to foreign exchange earnings and creating employment opportunities. Nawaal Chaudhry underscores the potential of Pakistani IT experts on a global scale, advocating for greater opportunities and support to maximize their impact.
Recognizing the transformative potential of digital technologies, the Pakistani government has launched initiatives such as the Digital Pakistan program. These initiatives aim to promote digital transformation, improve digital infrastructure, enhance digital skills, and foster innovation across various sectors. By leveraging these initiatives and enhancing collaboration between government, industry, and educational institutions, Pakistan aims to unlock its full potential in the global digital economy.
Pakistan’s digital economy holds immense promise for driving innovation, job creation, and economic prosperity. With sustained government support, investments in digital infrastructure, and a focus on nurturing digital skills, Pakistan is well-positioned to emerge as a leader in the digital age.
