Digital economy may contribute up to 7pc to GDP by 2030: OICCI

KARACHI: Pakistan’s digital economy could contribute 5-7 percent to GDP by 2030, if key structural challenges are addressed and reforms accelerated, according to a new report released by the Overseas Investors Chamber of Commerce and Industry.

The report, titled “Recommendations for Pakistan’s Digital Future” launched in Karachi, offered a detailed assessment of Pakistan’s digital landscape and highlighting both progress and persistent policy and infrastructure gaps. It underscored the growing importance of the digital economy as a driver of productivity, exports, and financial inclusion.

According to the report, Pakistan has witnessed significant momentum in digital adoption in recent years. Exports of IT and IT-enabled services (IteS) have reached USD 3.8 billion, while the country’s freelance sector generated USD 779 million in earnings. Broadband subscriptions have surpassed 150 million, alongside more than 200 million telecom connections. The mobile ecosystem alone contributes an estimated USD 17 billion to the national economy.

Despite these gains, the report identified critical infrastructure shortcomings that could hinder future growth. Only around 18 percent of cellular towers in Pakistan are connected via fibre optic networks—well below the global average of approximately 40 percent - restricting network capacity and preparedness for next-generation technologies.

OICCI President Yousaf Hussain noted encouraging developments in digital finance and inclusion, particularly the rapid uptake of the Raast instant payment system. He said Raast processed Rs18 trillion in peer-to-peer transactions during FY26, reflecting growing trust in digital financial services. However, he cautioned that infrastructure gaps and regulatory delays continue to limit the sector’s full potential.

Meanwhile, OICCI Secretary General M Abdul Aleem highlighted the slow implementation of policy recommendations. He pointed out that only about one-quarter of the proposals outlined in the OICCI’s 2022 digital report have been executed so far, stressing the need for faster policy action.

The report calls for a series of reforms to unlock Pakistan’s digital potential. Key recommendations include reducing taxes on broadband services and digital devices, accelerating fibre optic deployment, ensuring regulatory clarity in data protection and cybersecurity, and strengthening collaboration between the public and private sectors.

The OICCI concluded that with the right policy direction and execution, Pakistan is well-positioned to emerge as a competitive digital economy in the region by the end of the decade.

Copyright Business Recorder, 2026