Arooj Zulfiqar

Digital transformation is poised to play a pivotal role in ensuring Pakistan's long-term economic stability and boosting its trade competitiveness, as industries increasingly embrace technology to drive innovation and global market integration, reports WealthPK.

“As global economies increasingly shift towards digital platforms, the potential for Pakistan to tap into the digital economy has become more vital than ever,” said Asfand Yar Khan, DG (IT) at Ministry of Information Technology and Telecommunication, while speaking to WealthPK. “Digital economy not only offers opportunities for innovation, trade enhancement, and job creation but also provides a sustainable path toward economic resilience in the face of global uncertainties. For Pakistan, harnessing this sector is no longer an option but a necessity, if it aims to secure long-term economic stability, elevate trade capabilities, and enhance national productivity,” he said.

According to the Economic Survey of Pakistan (2023-24), the IT industry currently generates an annual export of around US$2.6 billion and to achieve the ambitious target of yearly exports of US$15 billion in next five years, at least 200,000 proficient and specialized IT professionals are necessary. Asfan added, “The growth of digital economy globally has revolutionized traditional business models by enabling faster, more efficient, and scalable operations. Digital platforms are not just about technological upgrades; they represent an entirely new way of conducting trade and business." “In Pakistan’s context, where trade and industrial growth have historically been hindered by inefficiencies in logistics and outdated processes, adopting digital tools can offer the much-needed agility and transparency to overcome these challenges.

E-commerce, digital payments, and blockchain-enabled supply chains can streamline processes, making Pakistan’s trade ecosystem more competitive globally. “One of the key areas where digital economy can drive growth is in the expansion of export-oriented industries. By investing in digital platforms, Pakistan can enhance its export capabilities through greater transparency, improved access to global markets, and the ability to meet international standards more efficiently. “For example, the introduction of digital tools in agriculture can allow farmers to directly engage with international buyers, reducing middlemen and ensuring fair prices for the local produce. Similarly, small and medium-sized enterprises (SMEs) can benefit from digital marketplaces to expand their reach beyond local markets, thus fostering innovation and entrepreneurship," he explained.

Credit: INP-WealthPk