Despite notable growth in information technology (IT) services, Pakistan’s share in global digitally delivered exports remains minimal at just 0.1 percent, according to the latest World Bank report titled “Pakistan Development Update.”
The report highlights that digitally delivered exports, including those transmitted over digital networks, have increased to around 10 percent of Pakistan’s total exports. Yet, the country continues to lag behind regional peers. By comparison, India commands 5.8 percent of the global market, while Indonesia holds 0.2 percent.
Even within IT services, the country captures only 0.3 percent of global trade, despite being the second-largest IT exporter in South Asia after India, with annual exports exceeding US$2.9 billion.
According to the World Bank, Pakistan’s digital export potential remains largely untapped due to persistent barriers such as uneven broadband coverage, high costs, and low internet speeds, which rank among the lowest in the region. The report also points to infrastructure gaps, including limited fiber optic penetration and a fragmented digital regulatory framework, which collectively constrain firms’ ability to expand their digital operations.
The Bank noted that regulatory bottlenecks such as multiple approval systems for fiber expansion, restrictive online content rules, and low participation in global digital trade discussions have further slowed progress. These challenges, it said, are also impeding Pakistan’s rapidly expanding freelance economy, a key contributor to IT-related export receipts.
Drawing lessons from regional models, the report cited India and the Philippines as examples of how coordinated policy initiatives can unlock digital export potential. India’s Digital India program and the Philippines’ Cyber Corridor—launched in 2006—helped build nationwide networks of tech hubs, fostering global leadership in business process outsourcing (BPO) and IT-enabled services.
The World Bank suggested that Pakistan could follow a similar integrated approach by focusing on digital access, broadband expansion, and skill development to foster a vibrant IT and digital services ecosystem.
It identified the most promising short- to medium-term opportunities in IT services, business and knowledge process outsourcing, fintech, and the gig economy. However, realizing this potential will require addressing long-standing issues such as skills mismatches, high tariffs on digital products, inefficient tax regimes, and weak investor confidence.
The report recommends that Pakistan:
- Accelerate implementation of the National Fiberization Plan to improve broadband reach.
- Adopt international data governance principles, including OECD good regulatory practices.
- Strengthen the Pakistan Software Export Board (PSEB) to promote international outreach and streamline business regulations.
By improving its digital infrastructure, regulatory environment, and human capital, the World Bank concluded, Pakistan could diversify its export base and position itself for sustainable, inclusive growth in the global digital economy.
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