ISLAMABAD: A new report by the Asian Development Bank (ADB) has identified major structural weaknesses in Pakistan’s digital sector, highlighting slow progress in connectivity and limited technological adoption. The report, designed to guide policymakers and investors, reveals that Pakistan trails behind many countries in expanding digital infrastructure and advancing telecom services.
Despite the telecom sector’s current valuation of $4.52 billion, with growth expected to reach $5.32 billion by 2029, serious challenges threaten this potential. ADB cites a lack of fibre-optic investment, heavy tax burdens, and political instability as key barriers. Pakistan also remains significantly behind in adopting 4G technology and is yet to launch 5G services, while over 100 countries have already implemented commercial 5G.
Notably, the government has not auctioned 5G spectrum or invested in 3G upgrades, indicating stagnation in network development. Fixed broadband penetration stands at just 1.3%, one of the lowest in the region, and the digital economy contributes only 1.5% to GDP.
The report further reveals gender and income-related inequalities in access. While 80% of the population is covered by mobile internet, usage is low. Mobile ownership is 86% among men but only 53% among women, with internet access at 53% for men and just 33% for women.
