Pakistan connected millions. Why has connectivity not translated into economic productivity?

Pakistan's telecommunications sector has undergone a remarkable transformation in the past two decades, reaching over 200 million mobile and 150 million broadband subscriptions. However, this impressive connectivity has not yet translated into significant economic productivity. According to the UNDP National Human Development Report 2024, the majority of Pakistan's internet users engage in entertainment, rather than work or business.

Only a small fraction of users access public services, generate content, e-commerce, or freelancing. The World Bank's definition of a thriving digital economy emphasizes job creation, innovation, and data-driven solutions, yet Pakistan lags behind in this regard. The GSMA's 2025 assessment reveals that while mobile broadband is widely available, only a quarter of users utilize mobile internet.

This usage gap underscores the disconnect between connectivity and productivity. The issue extends to government, with Pakistan ranking 136th in e-government efficiency, compared to Singapore's top position. The delay in integrating digital technology across various sectors has resulted in lost economic opportunities, as countries like India and Estonia have successfully leveraged connectivity to boost their economies.

Pakistan must recognize the distinction between simply being connected and building a mature digital economy, where digital technology enhances productivity across businesses, government, and the wider economy.