Faraz Saeed

LAHORE: Pakistan&rsquo;s digital economy could contribute between 5%-7% of gross domestic product by 2030, provided structural constraints are addressed and reforms accelerate, according to a new report by the Overseas Investors Chamber of Commerce and Industry (OICCI).&nbsp;Titled &ldquo;Recommendations for Pakistan&rsquo;s Digital Future,&rdquo; the OICCI Digital Report 2025 presents a detailed assessment of the country&rsquo;s digital landscape, highlighting both measurable gains and persistent bottlenecks shaping future growth.&nbsp;The report frames Pakistan&rsquo;s digital sector as a rapidly expanding but uneven ecosystem, where strong growth in connectivity, exports and digital finance is being tempered by infrastructure gaps and slow policy execution, raising the stakes for reforms needed to unlock its full economic potential.&nbsp;The report identifies the digital sector as an emerging driver of productivity, exports and financial inclusion, supported by a growing user base and rising adoption of digital services.&nbsp;Pakistan&rsquo;s IT and IT-enabled services (ITeS) exports have reached $3.8 billion, while the freelance economy contributes $779 million in earnings.&nbsp;Digital access continues to expand, with more than 150 million broadband subscriptions and over 200 million telecom connections. The broader mobile ecosystem contributes an estimated $17 billion to the national economy.&nbsp;The report also underscores rapid growth in digital finance.&nbsp;&ldquo;Pakistan has made notable strides in digital payments and financial inclusion. The Raast instant payment system processed Rs18 trillion in peer-to-peer transactions in FY26, demonstrating the rapid adoption of digital financial services,&rdquo; said OICCI President Yousaf Hussain.&nbsp;However, infrastructure limitations remain a key constraint.&nbsp;Only 18% of cellular towers are connected through fiber, well below the global benchmark of around 40%, limiting network capacity and readiness for next-generation technologies.&nbsp;Policy execution is another concern.&nbsp;While engagement on digital policy has improved, implementation remains slow. The report notes that only about one-quarter of recommendations from OICCI&rsquo;s 2022 Digital Report have been carried out.&nbsp;&ldquo;Only about one-quarter of OICCI&rsquo;s digital policy recommendations issued in OICCI&rsquo;s Digital Report 2022 have been implemented so far. Faster execution, improved fiber penetration and a more investment-friendly regulatory environment will be essential to unlock Pakistan&rsquo;s digital potential,&rdquo; said M. Abdul Aleem, Secretary General of OICCI.&nbsp;To address these gaps, the report recommends reducing taxes on broadband services and digital devices, accelerating fiber deployment, ensuring regulatory clarity in data protection and cybersecurity, and strengthening public-private collaboration.&nbsp;The government has set a target of $5 billion in IT exports for FY26, while analysts project exports could reach around $4.5 billion, implying annual growth of 18% to 20% from the $3.8 billion recorded in FY25.&nbsp;Under the broader Uraan Pakistan framework, policymakers are targeting $10 billion in IT exports by FY29, requiring a compound annual growth rate of approximately 27%.&nbsp;The report concludes that while Pakistan&rsquo;s digital economy is expanding and foundational elements are in place, closing infrastructure gaps, accelerating policy implementation, and investing in advanced skills such as artificial intelligence and cybersecurity will determine whether current momentum translates into sustained economic impact

Economy

Pakistan’s digital economy is growing fast and could reach 5–7% of GDP by 2030, driven by rising IT exports, digital payments, and increasing internet and mobile use.

Articles tagged with "Pakistan digital economy"

Pakistan digital economy seen reaching 7% GDP by 2030: Report

Pakistan digital economy seen reaching 7% GDP by 2030: Report