Digital transformation goals for South Asia in 2025

That the South Asian region, housing one-fifth of humanity, is transforming digitally – politically, socially and economically – is an understatement. With a combined population of over two billion, the region has over 1.4 billion Internet users – the largest wired bloc in the world. Over a billion registered voters in three countries from the region – India, Pakistan and Sri Lanka – elected new governments after elections in 2024. Bangladesh, another digital powerhouse of the region also replaced a government albeit in a student-led revolt, not elections.

The political reset in all these countries was characterized by a wave of democracy that is thoroughly digital now with technology playing a pivotal role in shaping both the electoral outcomes and the quality of democracy. This included digital campaigning with political parties leveraging social media with more than 600 million users in these countries and AI-driven political algorithms.

Digital technology also facilitated voter registration and amplified information dissemination with mobile apps and online platforms encouraging citizen participation, enhancing the democratic process. Voter turnout was high in all three countries. Transparency and accountability were bolstered as big data analytics helped dissect voting patterns, identifying trends and correlations. Some parties were able to use this to their tremendous advantage although the greater transparency also delivered some stunning political upsets and raised serious concerns about disinformation and hate speech.

The new era of digital democracy in South Asia is but a manifestation of the digital transformation sweeping the region. Although the pace and depth of digital adoption vary across the region due to disparities in infrastructure, governance, and socioeconomic conditions, some common characteristics of this transformation are evident.

These include speeding e-governance including digital services aimed at enhancing transparency, efficiency and public service delivery; improving communication, education, and health off the back of increasing mobile and Internet connectivity; expanding digital financial services with mobile money, digital wallets, and online banking becoming ubiquitous; and a booming e-commerce sector.

Not all is hunky dory, of course. Significant challenges remain in ensuring the digital transformation of the region is sustainably productive in ways that will test the countries of the region in 2025 before South Asia can rise up the ranks to rival the likes of Europe and America.

If its member states can ditch their traditional political intransigence, for South Asia the sky is the limit in being collectively and progressively digital.

Adnan Rehmat

Key among these will be plugging digital infrastructure gaps as large rural regions in most countries face connectivity and power supply problems while also struggling to match mobile penetration levels with fixed broadband penetration remains. Uneven digital literacy and gender disparity also persist, with women in many parts of South Asia – especially in India and Pakistan – having lower access to digital tools.

Cybersecurity threats and pervasive data privacy violations are also key concerns that South Asia needs to address. While Bangladesh, India and Sri Lanka have data protection laws, albeit with concerns of their own, Pakistan is still resistant to calls from digital rights activists to enact one.

Perhaps the biggest worry is the domain of regulatory and policy frameworks. While some countries like India have made strides in digital regulations, Pakistan, Bangladesh, Sri Lanka and Nepal still lack comprehensive, cohesive policy frameworks that address e-governance, digital finance, privacy, and innovation. Pakistan has promised an integrated policy in early 2025 after tabling a draft in parliament in late 2024. The region also has a serious freedom of expression problem with states uncomfortable with free speech of citizens. The region shouldn’t become ‘censoristan.’ Political instability and sluggish bureaucracies are also challenges.

The regulation of emerging technologies like AI and blockchain is still in its infancy in most South Asian nations. While Bangladesh and Sri Lanka have national AI policy drafts in place, India and Pakistan are under pressure to enact them in 2025.

While the region is already in the speed lane of global digital transformation, what can South Asia do in 2025 that can further fast-track it for the goal of an accumulative trillion-dollar regional economy within a decade?

Some priorities are obvious: building more robust digital infrastructure including expanding high-speed broadband and universal 5G connectivity; promoting greater digital inclusion by making good quality Internet access universal and affordable; investing in education and skill development through digital literacy programs at school level and tech trainings for current workforce; strengthening cybersecurity and data privacy to prevent rights abuses; and fostering innovation and startup ecosystems through supportive policies for startups including R&D to harness the potential of emerging technologies like AI, blockchain, and Internet of things (IoT).

But the most important thing South Asia can do is promote regional cooperation and partnerships through collaborations on cross-border digital initiatives and harmonizing regulatory frameworks to foster a unified digital market. If its member states can ditch their traditional political intransigence, for South Asia the sky is the limit in being collectively and progressively digital.

- Adnan Rehmat is a Pakistan-based journalist, researcher and analyst with interests in politics, media, development and science. X: @adnanrehmat1