Can digital technology be a game changer in Pakistan’s development?
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With all of Pakistan’s human development indicators having declined in recent years, a timely new report asks a pivotal question. Can digital technology play a role in the country’s development, enabling it to leapfrog to a better future? The UNDP’s 2024 National Human Development Report for Pakistan seeks to answer this question and more. It puts forward the compelling argument that digital technology can be a vital enabler to enhance human development in Pakistan.
There is no doubt that technology is a force multiplier and has powered positive developments across the world— empowering people, improving lives, increasing productivity, advancing medical and scientific knowledge and transforming societies. Digital technology has emerged as a new pathway to development and prosperity and helped to fuel social and economic progress as well as empower citizens in countries the world over. It is no less significant for the role it can play in Pakistan’s future development trajectory.
The UNDP report Doing Digital for Development assesses in detail how digital transformation can be a critical vehicle to drive socio-economic development in Pakistan. It identifies the challenges and opportunities on the path of digital empowerment. It sees digital technology as a transformative and democratizing force “capable of bridging the gap between existing human development deficits and a future of prosperity and growth.”
In surveying the challenges of the country’s uneven digital playing field, the report points to several disparities and weaknesses, presenting a number of telling facts in this regard. With over 87 million Internet users, Internet penetration is around 46 percent. This means over half the population has no Internet access. The country has 71 million social media users representing 30 percent of the population. Pakistan fares poorly in leading global indices measuring digital progress. It is ranked 45 out of 52 countries in the World Internet Development Index (2023), compiled by China. This is based on indices of IT infrastructure, digital technology and innovation capability, digital economy, digital governance and cybersecurity.
Some degree of digital literacy is directly linked to outcomes such as higher learning, better health and quality of life.
Maleeha Lodhi
The UNDP report also cites the Inclusive Internet Index on which Pakistan ranks 79 out of 120 countries in areas such as availability, affordability, relevance, and readiness. In the E-Governance Development Index, Pakistan ranks 153 out of 193 countries. These low rankings lay bare critical gaps in the digital landscape. The report notes that a key reason for this is Pakistan’s poor human development record, which underscores the country’s inability to leverage the potential for digital transformation.
But the glass is also half full due to several other factors identified in the report. It lists and discusses a number of digital milestones and trends in the country’s digital journey as well as initiatives taken by governments, corporations, civil society and social enterprises in this area, which are laid out in the detail not found yet in any other publication.
Especially important is the report’s finding of the strong correlation seen in the country’s districts between higher levels of digital adoption and better human development outcomes. This finding comes from the data of the government’s Pakistan’s Social and Living Standards Measurement (2019-2020), which served as the basis of the report’s research. In other words, greater use of computers, digital devices, Internet, and some degree of digital literacy is directly linked to outcomes such as higher learning, better health and quality of life. Conversely, districts having low digital penetration had poor human development outcomes. A strong correlation is also determined between urbanization, economic prosperity, and digital development.
The report also acknowledges the gains Pakistan has made, citing the case of the country conducting its first ever Digital Census in 2023. An achievement in the FinTech sector mentioned by the report from its household-level survey is that 58 percent of respondents, many of them women, used mobile wallets as their primary bank account. This has brought “rural and vulnerable populations into the formal financial net.” E-commerce has done well according to the report; its survey finds significant growth of the sector in Pakistan, whose predicted revenue was above $8 billion in 2023, making it the world’s 36th largest market for e-commerce. Field research for the report also found that digital use was bringing “profound changes in livelihoods, political participation, entrepreneurship, commercial transactions, work cultures, and even social relations.” People, it points out, have embraced digital technology voluntarily, recognizing its transformative potential for improving their lives.
From its comprehensive analysis of Pakistan’s digitalization potential, the report concludes that if the country builds its digital capabilities, makes strategic investments in technology, undertakes policy reforms in priority areas and empowers the private sector to take a lead in digital growth and innovation, it can attain better outcomes in digital access, governance, infrastructure, employment generation and growth, all of which will create a critical mass to enhance human development.
It proposes a 4 As framework on how to achieve digital transformation – Access, Adopt, Anticipate and Accelerate. Each of these constitute a building block toward achieving higher human development outcomes. The actionable roadmap set out by the report warrants serious attention by policy makers, businesses and civil society, whose collaboration in this critical sphere can help Pakistan to leapfrog toward a hopeful and resilient future. The UNDP team that put this report together deserves to be commended for both its rich analysis and recommendations.
- Maleeha Lodhi is a former Pakistani ambassador to the US, UK & UN. Twitter @LodhiMaleeha
