The digital revolution of the past decade held immense promise for Pakistan. With a large, young, and English-speaking worforce willing to work at competitive wages, the country seemed poised to carve out a niche in the global tech outsourcing market. Initial steps were promising. Infrastructure projects like the Alfa Kareem Tower in Lahore and IT parks in Karachi laid the groundwork, spurring a wave of tech outsourcing. This influx of foreign investment and expertise catalysed a burgeoning start-up culture, driving innovation and fostering economic growth.
Co-working spaces flourished, offering hubs for collaboration and creativity, and the country appeared to be on a trajectory similar to other regional success stories like India, Vietnam, and Bangladesh. Powered by a youthful, tech-savvy population, Pakistan seemed destined to emerge as a digital Asian tiger. Yet, in recent years, this momentum has stalled dramatically. While the COVID-19 pandemic played a role, the primary culprit has been retrograde policymaking that stifles the digital economy. Pakistan’s financial institutions remain mired in outdated, paper-based systems that complicate business operations. Though digital banking options have emerged, entrenched practices within the banking sector hinder the broader adoption of modern, efficient systems critical for a thriving digital economy.
Perhaps more damaging is the persistently slow internet speed in the country. A significant factor is the mythical “firewall” that has been installed, ostensibly for content control, which has significantly degraded connectivity without offering solutions to bring speeds up to international standards. Compounding this issue is the government’s ban on VPNs. Officials mistakenly view VPNs solely as tools for accessing restricted content or spreading disinformation, ignoring their essential role in global business operations. Many international companies require VPNs for secure data transfer or to enable employees to access systems as though they were located in specific countries. These restrictions effectively drive foreign contracts to more business-friendly neighbours like India or Bangladesh.
The fallout from such shortsighted policies extends beyond connectivity issues. Investment in technology infrastructure has slowed, with no new IT parks or advanced universities emerging to nurture the next generation of tech professionals. This stagnation undermines the country’s potential, leaving it trapped in the middle of a digital revolution that it seemed ready to embrace.
