Pakistan's digital divide: challenges and opportunities in connectivity

Global Watch | 2026-02-24

Pakistan's digital landscape features stark disparities: while mobile penetration exceeds 90%, fixed broadband stands at just 1%, lagging behind Vietnam and India.

The Asian Development Bank (ADB) attributes this to high investment costs, restrictive regulations, and erratic taxes impeding expansion.

Digital identification expert Tariq Malik, former head of Pakistan's National Database & Registration Authority (NADRA), stresses that "reliable connectivity, inclusive financial services, and platforms like OneID" are essential for unlocking potential, highlighting the 7 million women who gained digital IDs from 2021 to 2023 to close gender gaps.

Reports underscore the inefficiencies blocking Pakistan's global digital integration. Fiber-optic coverage is only 1%, with infrastructure faltering amid rapid tech evolution.

Access Partnership, a global advisory firm, forecasts PKR 9.7 trillion (USD 59.7 billion) in economic value by 2030 -- equivalent to 19% of Pakistan's 2020 gross domestic product (GDP) -- via connectivity and skills investments. "These technologies enable new models and savings, creating value," it stated in a recent report.

Infrastructure deficits

Pakistan's telecommunications sector has advanced in mobile connectivity, with 4G covering 75% of the population.

Yet, insufficient fiber-optic networks and Tier-4 data centers restrict high-speed access and reliable services.

Just 13.5% of cell towers use fiber-optics, leaving rural areas underserved due to economic and terrain issues. The ADB notes that spectrum scarcity and high, dollar-pegged auction prices hinder 5G rollout and quality.

Information and Communication Technology (ICT) analyst Kapeel Kumar highlights recent disruptions that "expose the fragility of our digital infrastructure," as development lags behind 30% annual IT growth.

Energy-inefficient data centers worsen these issues, with outages disrupting services.

The January 2023 power blackout impacted 40,000 towers, revealing significant vulnerabilities.

Information Technology (IT) Minister Amin ul Haque admits "Around 35 percent of Pakistan lacks internet infrastructure," urging billions in investments, including 600 million rupees for districts in Sindh.

Pakistan's digital divide spans geographic, socioeconomic, and rural gaps.

Only 15% of rural residents access the internet versus 55% in cities; low-income households have only 27% access, compared to 77% for high earners.

Harvard's Mittal Institute lists challenges like cultural resistance and remote unreliability, warning that equitable access is vital for effective decision-making. Analyst Ibrahim Amin cites the lack of consolidated data systems as a factor perpetuating inequalities.

Digital policies are inconsistent, delaying spectrum allocation and strategies.

Pakistan hasn't auctioned 5G, unlike 101 other nations. A Global System for Mobile Communications Association (GSMA) head warns that a two-year delay could cost the economy $1.8 billion and calls for lower prices to help reach the goal of $25 billion in IT exports.

High ICT taxes deter investment, ranking Pakistan among the highest-taxed countries regionally. The ADB blames fragmented regulations for slow digital trade.

Fragmented regulations also impede progress.

Provincial efforts, like Punjab's land digitization and Sindh's tech partnerships, promise much but face uneven execution and coordination issues. University of Wales research stresses that resistance to change remains a barrier, noting that "communication is essential" for widespread adoption.

Opportunities for growth

Despite these challenges, Pakistan's digital sector offers vast potential.

The telecom market is projected to grow from $4.52 billion in 2024 to $5.32 billion by 2029, fueled by a youthful, tech-savvy demographic.

Investments in fiber optics, data centers, and literacy could yield major gains, including $36 billion GDP boost via digital inclusion.

The World Economic Forum praises digital public infrastructure (DPI) efforts like NADRA and Raast (an instant payment system) as game-changers, emphasizing the need for "enduring political commitment and robust legal frameworks."

Pakistan's digital shift is pivotal.

Mobile access has connected millions, but fixed infrastructure, regulations, and inclusion still lag. Tackling bottlenecks is key to maintaining a competitive edge. Inaction could lead to deeper marginalization and lost integration.

Bridging these divides fosters equitable growth, empowerment, and competitiveness. Criterion Quarterly notes that this transformation enables "leapfrogging growth" when supported by inclusive policies.