This year, Pakistan has been ranked at “the top position across the world in the adoption of technology”, says a research study the IPSOS Global Trends in November 2024. The study states 89% of Pakistanis agree “we need modern technology because only this can help solve future problems”. It further adds “Pakistanis believe the adoption of technology is going to create more jobs instead of taking their jobs”. However, the year 2024 hasn’t been considered as progressive and positive in terms of information technology (IT) by many media, business and IT experts. No doubt there are good developments on digital fronts, but at the same time escalation in digital clampdown contrastingly stains the progressive side. Here are 7 much-resonated highs and lows relating to information technology and digital landscape in Pakistan in 2024.
Technology & Digital Landscape of Pakistan in 2024:
Digital technology innovation has been transforming global economies and industries for sustainable development and remained the leading drivers of growth around the world. But it is sad to note that Pakistani governments have failed to align their national digital landscape with modern technology the way it should have and keep pace with its advancement. No doubt, the 2024 is a progressive year for the nation when the country’s first Digital Development Index released, significant emphasis were laid in Budget 2024 on advancing the Digital Pakistan vision and the Digital Nation Pakistan Bill, 2024 was tabled in National Assembly. Besides the sharp increase in IT exports as well as digital payments were also positively marked.
But on the other hand, the subsequent advancements are marred by escalation in digital clampdown, including the ban on X (formerly Twitter), intent of blocking of non-commercial VPNs and the deployment of a China-inspired “National Firewall”. Besides slowdown (sometimes complete shutdown) of Internet resulting in WhatsApp outages preventing messages, images, and videos from being sent have added to the chaos, affecting millions of users.
Lets’ analyze now each evet or development relating to digital technology in 2024:
- Digital Pakistan Vision:
The Government of Pakistan, in the Budget 2024 laid significant emphasis on advancing the Digital Pakistan vision. With enhanced Digital Infrastructure like Expansion of Fiber Optic and 5G Rollout the budget also outlines significant investments in cybersecurity, public service digitization and e-governance. Enhancement of digital infrastructure, promoting digital skills, incubation centers, technology park and supporting startups are also enacted in the budget.
It is the first time that genuine emphasis has been laid on digital technology with a proper road map. With this vision the government aims to create a robust digital ecosystem. These initiatives are poised to drive economic growth, foster innovation, and improve the quality of life for all citizens, positioning Pakistan as a competitive player in the global digital landscape.
- 2. Pakistan First Digital Development Index:
The report of the Pakistan’s first Digital Development Index (DDI) released on April 23 this year. The report categorizes Pakistan’s digital development as ‘moderate’ with cumulative DDI of 0.205. Islamabad tops the ‘very high’ digital development list, followed by Karachi, Lahore, Rawalpindi, Peshawar, Haripur, and Abbottabad in the ‘high’ category. These rankings correlate strongly with higher human development outcomes.
The report further highlights that inadequate digital infrastructure and affordability issues deprive over half of Pakistan of internet access. Without equitable digital access, the report warns, Pakistan’s human development outcomes will remain low and underserved
3. The Digital Nation Pakistan Bill, 2024
In December, the Digital Nation Pakistan Bill, 202 was tabled. The purpose of this legislation is to “provide for the transformation of Pakistan into a digital nation, enabling a digital society, digital economy and digital governance”. The Federal Cabinet already approved it, which aims at establishing the National Digital Commission and the Pakistan Digital Authority to drive the digitization of the economy and promote e-governance.
The National Digital Commission, headed by the Prime Minister and comprising federal and provincial members, will serve as a policymaking organization. While the Pakistan Digital Authority will work towards achieving the goals of ‘Digital Pakistan’ and will function as a corporate entity with financial and administrative autonomy. The ultimate objective is to improve access to departments managing ID cards, land records, birth certificates and health records.
4, Rise in IT Exports:
According to the latest data available, Pakistan’s monthly IT exports reached $324 million in November 2024, reflecting a 25% year-on-year (YoY) increase. These exports surpassed the 12-month average of $295 million, marking the 14th consecutive month of YoY growth since October 2023, according to data compiled by Topline Securities. The first five months of FY25 saw IT exports rise to $1.53 billion, up 33% YoY.
Key drivers included an expanded global client base, particularly in the Gulf Cooperation Council (GCC) region, and policy measures such as the State Bank of Pakistan’s (SBP) relaxation of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%. Additionally, the stability of the Pakistani Rupee (PKR) encouraged IT exporters to bring a higher portion of their profits back to the country. Despite, Pakistan government’ wish to attain the target of $25 billion exports looks shaky and unattainable because of various clampdowns on digital technology.
5. Installation of Cyber Firewall:
Pakistan installed in September a debatable national firewall that can track, block or significantly limit the visibility of content it deems is propaganda in real time. This geo-fencing firewall controls and restricts incoming and outgoing traffic by setting geographical limitations, such as China’s Great Firewall, which blocks YouTube, Facebook and other websites and apps. It creates a virtual geographic boundary. At first Pakistan IT minister calls it a “web management system”, but later official sources confirmed that all of Pakistan’s internet traffic now goes through content filtering.
The installation of firewall resulted in slow and patchy internet speeds, thus the biggest hit is being faced by call centers and e-commerce platform owners, who have to make international calls and payments respectively.
6. Ban on X (Formerly Twitter)
Pakistan blocked access to social media platform X in February, citing national security concerns. “The decision to impose a ban on Twitter/X in Pakistan was made in the interest of upholding national security, maintaining public order, and preserving the integrity of our nation,” the interior ministry said, according to the report submitted to the Islamabad High Court in a challenge to the shutdown.
The decision to temporarily block X was taken after considering confidential reports from Pakistan’s intelligence and security agencies, the report said. It further claimed that “hostile elements operating on Twitter/X have nefarious intentions to create an environment of chaos and instability, with the ultimate goal of destabilizing the country and plunging it into some form of anarchy”. Activists, however, challenging the ban said the move is more political rather security related and was designed to quash dissent after the February 8 general elections
7. Restriction on VPN:
On November 15, the interior ministry asked the Pakistan Telecommunication Authority (PTA) to block “illegal VPNs” across Pakistan, citing their use by terrorists to “facilitate violent activities” and to “access pornographic and blasphemous content”. While VPN usage in Pakistan has never been so high, the government threatened to introduce a new policy to ban the use of “unregistered” services starting from November 30, 2024. Even the country’s top cleric declared that VPNs are unlawful, igniting a debate on privacy rights and access to information amid a government crackdown on the internet.
Yet, on December 1, 2024, the PTA withdrew plans for the VPN ban “over lack of legal grounds.” The debate over VPNs in Pakistan is ongoing, and the industry believes that blocking VPNs would have a negative impact on the country’s IT and ITeS exports.
These restrictive measures surely do not depict any ideal scenario for IT industry. They are more politically driven, so wouldn’t be helpful to meet out the objectives the Digital Nation Pakistan Bill. Moreover, emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), blockchain tech, and data security were not prioritized by government which have the potential to transform industries and create new opportunities for businesses and individuals. Similarly, digital technologies which support green development by enabling resource efficiency and reducing emissions by promoting telecommuting and supporting sustainable supply chains and data driven decisions remained also out sight and out of mind.
By
Editorial, Infocus
