Report says digital sector currently contributes only 1.5% to Pakistan’s GDP
The Asian Development Bank (ADB) has predicted that Pakistan’s telecommunications sector will grow by 3.3% annually through 2029, but has warned that the country is significantly lagging behind in 4G and 5G deployment due to low investment, limited infrastructure, and policy hurdles.
In a detailed analytical report released on Pakistan’s digital ecosystem to help policymakers and stakeholders make effective decisions, ADB estimated the size of the telecom market at $4.52 billion, projecting it to reach $5.32 billion by 2029. However, the report emphasized that despite 80% of the population having access to mobile internet, actual usage remains low — primarily due to device affordability challenges, especially for women and low-income groups.
“The digital sector currently contributes only 1.5% to Pakistan’s GDP,” the report stated, calling for further investment in the sector, including immediate investment in fiber optic infrastructure and expansion of fixed broadband access, which currently stands at a mere 1.3%.
The bank noted that fiber network access was limited in Pakistan, suggesting the fiber optic infrastructure be expanded urgently. “Focus should be placed on laying fiber optic cables in backward areas.”
ADB noted that Pakistan has the highest telecom taxes in the region, which discourages investment and stalls progress; the environment should be made conducive for investment. Over the past five years, investment in digital infrastructure and upgrading of networks has been minimal, largely due to political instability and a lack of government support for spectrum development.
While commercial 5G services have launched in 101 countries, Pakistan has yet to adequately prepare for 5G, and its 4G coverage remains the lowest in the region.
The report highlighted significant gender and regional gaps in internet access — 53% of men and only 33% of women are online. The ADB has urged targeted efforts to train women and youth in online business skills, especially in rural areas.
Furthermore, the report recommends that provincial governments increase demand for fiber broadband by prioritizing its deployment in schools, hospitals, and other public institutions, especially in underserved areas.