ISLAMABAD: The World Bank has indicated $225 million for “Digital Economy Enhancement Project” to strengthen digital connectivity as a key foundation for digital economy development and enhance the government’s capacity for digitally-enabled public services delivery.
The proposed project, to be financed by the loan from the International Development Association (IDA), will focus on critical digital infrastructure, platforms and supporting regulations for digital services.
The implementing agency of the project will be the Ministry of Information Technology and Telecommunication.
The proposed project forms part of the World Bank’s consolidated assistance programme to Pakistan in the wake of the Covid-19 pandemic.
It will build the enabling environment to leverage digital technologies, accelerate economic recovery, and enhance service delivery particularly to vulnerable groups.
It will promote alignment and coordination among the private sector and provincial and federal governments; to bridge the digital divide and help Pakistan build resilience in the face of socioeconomic and technological disruptions.
Among other impacts, the pandemic has highlighted inequities in internet access, affordability and usage across the country. Digitalization of services—from telehealth to online education to cashless transfers—is emerging as crucial to the country response and to building resilience.
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Without access to reliable connectivity and devices, millions of Pakistanis risk being further cut off from vital information on health and safety, online learning, and the opportunity to voice their views and engage in commerce. Inequalities may worsen because disadvantaged groups and people who live outside major urban areas have more limited Internet access.
Further, the disparity between men and women in their educational attainment, labor force participation, wages, and access to financial services may increase where there is a gender gap in access to the internet.
The project documents noted that digital literacy is still limited, particularly, in lower income and rural communities. Women and girls especially are being increasingly excluded by the growing dangers of harassment, blackmail and other types of digital violence.
Studies show that women are 37 percent less likely to own a mobile phone and 40 percent less likely to access the internet than their male counterparts. Moreover, broader (digital) literacy is limited, constraining demand.
Less than 40 percent of Pakistanis report knowing what the internet is; and among internet users; only 11 percent have used e-commerce platforms.
This lack of awareness is also constricting broader uptake of digital financial services such as digital wallets that have the potential to boost the economy by increasing transparency and facilitating faster transactions.
Pakistan lags on most digital development rankings relative to regional comparators, notably on digital infrastructure and digital (e-) government. Particular concerns include the relatively low rate of broadband internet penetration, particularly in rural areas; and limited digital adoption by women.
While 21 percent of males (aged 15-16) surveyed nationally said that they had used the internet, only 12 percent of women had done so. Internet use is more prevalent in urban areas, with a third of the population using it, compared with a tenth of the rural population.
The provision of new or upgraded high-speed internet access for unserved and underserved district hospitals and secondary schools in the selected cities where backbone network infrastructure is already available will be supported.
The list of locations will be confirmed by the ministry of information technology and telecommunications in consultation with ministries of health and education and provincial governments.
Copyright Business Recorder, 2021
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