Pakistan lays digital foundations for faster economic growth

September 07, 2026 (MLN): Pakistan is laying the foundations for a digital economy by developing a national digital stack based on open-source technology, with plans to provide it free of cost to frontier and emerging nations once completed.

The initiative is aimed at using digital technology not merely for modernisation but to create wealth, strengthen economic independence and accelerate the country’s development.

Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, addressing the LEAP 2026 conference on “How We Built a Digital Nation”, said Pakistan had shifted its focus away from “fancy big projects” towards building strong digital foundations, according to APP.

Over the past two years, the government has introduced key legislation, including the Digital Nation Pakistan Act and the National AI Policy, aimed at supporting the technology ecosystem while maintaining ethical, security and sovereignty safeguards.

Right-of-way reforms have also been introduced to encourage fibre connectivity and broadband adoption.

The minister said the government began its digital transformation efforts by engaging with investors, industry, young people and international partners to understand their concerns.

She identified digital connectivity as the first major challenge, noting that reliable, high-speed internet was essential for digital development. Spectrum availability had been a major bottleneck, while Pakistan had now conducted the world’s largest spectrum auction, offering 480 megahertz.

The rollout of the newly available spectrum was underway, while two new submarine cables had also landed in Pakistan. Fibre reforms had been implemented and house passes had increased by almost 100%.

Policy continuity was identified as the second major challenge. Khawaja credited Prime Minister Shehbaz Sharif with establishing the Special Investment Facilitation Council (SIFC), which she said had contributed to policy continuity.

The council is headed by the prime minister and supported by Chief of Defence Forces Field Marshal Syed Asim Munir. It also comprises the chief executives of the four provinces and cabinet members.

Business competitiveness was highlighted as the third major challenge, particularly for technology companies dealing with taxation-related issues.

The government has established special technology zones offering tax-free status for the next 10 years, according to the minister.

Pakistan is also working to introduce international payment gateways for its youth and expand sovereign computing, areas she described as offering significant opportunities for investors.

Digital transformation has also become a priority across the government, with ministries increasingly viewing technology as an enabling sector that needs to be incorporated into their strategies.

Khawaja said economies typically followed an S-curve, progressing from gradual development to rapid expansion before reaching a plateau. Countries seeking to accelerate their development at that stage require innovation, partnerships and smart investment.

She described digital transformation as the “single greatest intervention” a government could make to secure its future and accelerate development.

The minister said Pakistan had established the foundations of a digital nation and was now rapidly developing its digital stack.

She described the country as one of the world’s largest investment opportunities and said stable leadership, digital public infrastructure and ecosystem investment could enable double-digit digital growth.

With a population of 240 million, including more than 150 million people under the age of 30, Pakistan could not afford to progress slowly, she added.

Khawaja also outlined five lessons from Pakistan’s digital transformation experience.

The first was that governments should develop laws and policies rather than software. Their role should be to establish supportive legislation, policies and institutions with clear mandates.

The second was the need for a digital GovTech agency positioned between the ministry responsible for policymaking and the public and private entities responsible for implementation.

Such an agency should establish a target operating model and facilitate a whole-of-government approach. Ideally, it should report directly to the head of state. In Pakistan, the National Digital Commission reports to the prime minister.

Pakistan’s target operating model is the Digital Nation Master Plan, which focuses on interoperability built around trust and security.

The third lesson was the importance of maintaining focus through discipline, measurable targets, key performance indicators and regular follow-up to ensure implementation.

The fourth was to “build rails, not products”, meaning the state should establish core infrastructure such as data exchange, digital identity and payments before allowing the private sector to develop products on top of it.

The fifth lesson was the importance of international cooperation, with Khawaja stressing that nations could achieve more by working together rather than operating in isolation.

She said these five lessons had helped Pakistan establish the foundations and strategic direction required for its digital transformation.

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