INP-WealthPk

Pakistan on Course to Meet Digital Transformation Goal

February 10, 2022

By Irfan Ahmed ISLAMABAD, Feb. 10 (INP-WealthPK): If Pakistan maintains the current digital growth outlook, it will be well on course to meet its full digital transformational goal by 2030. According to the Global System for Mobile Communications (GSMA) 2020 Digital Societies Report, which has tracked the progress of 11 awareness nations in Asia Pacific, Pakistan is advancing its societal, financial and digital ambition, as outlined in the Digital Pakistan Vision. Pakistan has achieved one of the highest increases in its overall score, as per the report’s index. And according to a recent Google-AlphaBeta report, full digital transformation can help Pakistan achieve Rs9.7 trillion in annual economic value by 2030, which was 19% of the country’s GDP in 2020. As per the Google’s ‘Unlocking Pakistan’s Digital Potential’ report, Pakistan has the potential to go further in its digital transformation despite many achievements is has made already. It notes that Pakistan is home to over 300,000 Information Technology professionals, produces over 25,000 IT graduates annually, and has nurtured over 700 tech start-ups since 2010. "Technology exports have grown 15% per year since 2020 and are expected to reach $3.5bn in 2022. Pakistan’s online population has grown rapidly and the internet penetration rate is reaching 54% in 2021,” it states. Source: AlphaBeta analysis The report identifies three main pillars of action Pakistan could take to reach the projected growth opportunity, which include developing infrastructure to support the local tech ecosystem, continuing to create a conducive environment for IT exports, and promoting innovation and digital skills in the country. The agriculture and food sector is projected to be technology’s largest economic beneficiary in Pakistan. This sector is estimated to achieve annual economic benefits up to $18.2 billion in 2030, which is 30% of the country’s total digital opportunity. Other top sector beneficiaries include consumer, retail and hospitality $7.2 billion; education and training $7.0 billion; financial services $6.8 billion and health $5 billion. Source: AlphaBeta analysis Pakistan will have to focus on eight key technologies that hold transformative potential, including mobile internet, cloud computing, big data, Artificial Intelligence, fintech, Internet of Things and remote sensing, advanced robotics and additive manufacturing. Pakistan’s endeavour to progress to a fully-fledged digital society will centre on its citizens’ ability to learn new skills for new jobs, ensuring small and medium enterprises’ access to new markets, and attracting new investments. Bringing tax reforms and implementing ‘Right-of-Way’ infrastructure policies will also be key steps for meeting the digital transformation goal.