Amir Saeed

Pakistan's digital divide significantly hinders financial inclusion, impacting economic growth and social equity, while also limiting access to essential services across the country.

Talking to WealthPK, Ahad Nazir, Associate Research Fellow at the Sustainable Development Policy Institute (SDPI), said the digital divide posed significant challenges for financial inclusion, undermining the country’s ability to integrate more citizens into the formal economy. Nazir suggested that increasing access to digital technologies could be a powerful strategy to bridge this gap.

By enhancing digital access, the country can stimulate economic growth through increased participation in e-commerce and digital banking. This approach can also support financial inclusion by providing the unbanked communities with a gateway to essential financial services, such as mobile banking and digital payment platforms.

As more people access digital tools, new avenues for digital commerce and financial services open up, contributing to national growth and creating new job opportunities, particularly in the tech sector. Data indicates that there were 116 million internet users in Pakistan in January 2025. This figure suggests that 137 million people, or 54.3 percent of the population, remained offline at the start of the year.

“Digital access will bring the marginalized communities into the formal economy, providing them with a pathway to financial stability. Furthermore, improved digital access empowers the underrepresented groups, including women and rural populations, by offering them access to the essential information and services that can transform the local economies and promote social inclusion,’’ Nazir said.

Talking to WealthPK, Aatizaz Hussain, former manager of Financial Literacy Programme at the National Institute of Banking and Finance, highlighted broader implications of the digital divide on financial inclusion. He emphasized the importance of strategic development to ensure equitable access to the digital services. He added that as increased internet penetration presented opportunities for economic growth and digital inclusion, it was crucial to provide uninterrupted, affordable, and high-speed internet services to all the users.

This will foster user confidence and encourage sustained usage, maximizing the benefits of increased internet penetration. Hussain advocated a clear cellular policy guaranteeing high-quality services to support the country’s digital transformation and prevent any decline in uptake and usage, which would hinder economic and social benefits. Additionally, he stressed the need for digital literacy programs to ensure that the users could effectively utilize digital platforms for financial transactions and other services.

By addressing these challenges, the country can leverage technology to reduce economic disparities and foster a more inclusive financial system. “This comprehensive approach will not only enhance financial inclusion but also contribute to broader socio-economic progress by empowering the marginalized communities and promoting digital skills across the country,’’ he said.

Credit: INP-WealthPk