How does Digitalization play a key role in Pakistan’s economy?

With the help of new techniques and technologies, Digitalization plays a significant role in shaping the economy and society from the old 19th-century mindset to the modern mind frame of the 21st century. 

Digitalization is transforming the economy dramatically. It contributes to boosting productivity, entrepreneurship, and regional economic growth. Digitalization is the fourth industrial revolution. However, in Pakistan, we might not be on a level with the rest of the globe. Therefore, the country’s greatest challenge is its general willingness to embrace Digitalization fully.

What is Digitalization?

Digitalization is the transitional process of shifting to a digital business. For generating value and revenue, the use of digital techniques and technologies is what Digitalization is about. In Pakistan, Digitalization is the main reason behind the revolutionizing logistics and transportation industries. Furthermore, Digitalization will be the most influential trend in the coming years by reshaping and transforming entire businesses.

Without the help of any intermediaries, Digitalization establishes a link and connects the suppliers with the consumers. In addition, it is a process where IT technology lowers the cost of data storage, analysis, and sharing.

Importance of Digitalization for Pakistan’s Economy

The speed of economic activity has altered dramatically due to digital technology. The Internet and electronic devices fuel the rise of the economy. Consumer behaviour in the virtual market, industry activity and governmental operations have all changed due to Digitalization. As a result, the economy’s Digitalization boosts sales, productivity, entrepreneurship, and regional economic growth.

The labour market and political engagement are other effects of the economy’s Digitalization. In addition to information and communication technology, the Digitalization of the economy has additional demands on education and training in fields including marketing, accounting, e-businesses, finance, sociology, political science, psychology, and economics.

The digital economy provides several opportunities for businesses to gain a competitive edge, including the availability of digital technology, process optimization inside industries, digitization, and digital convergence.

Benefits of Digitalization

The Digitalization of the economy can aid in more successful business economic trend analysis by researchers, business expansion into the foreign market, better GDP and tax data assimilation by governments, better consumer decision-making from a broader range of goods and services at lower prices, and shorter waiting times. Additionally, digitization enables social sectors to more quickly and precisely concentrate their charitable efforts toward the needy. In the long run, all of this lowers poverty, lowers government social security costs, and raises employment rates.

By 2030, according to a new Google-commissioned analysis, in annual economic value, digital transformation can help Pakistan get up to 9.7 Trillion Rupees, comparable to nearly 19% of the nation’s GDP in 2020.

Digital market development and accelerating Digitalization can have a significant positive impact on the society and economy of the country. The benefits of digitization include additional career opportunities, increased productivity, and improved quality of life for all community members.

Effects of Digitalized Economy

Digitalization has also altered how people perceive advertising, mainly due to the widespread usage of social media platforms. Another problem is that organizations with modern Internet-based business models, like Uber, make regulation of traditional service providers difficult. These internet-based firms would soon push conventional commodities suppliers to adapt or risk losing customers to quickly expanding e-businesses.

In industrial organizations, the consequences of Digitalization will affect the online market and platforms the most, which will transform from physical to virtual quickly. The customers’ choices and preferences, technological developments, and the ability of the Internet to give information at a cheaper rate are influenced by the content, which is user-generated and open-source creation. 

Today, due to the widespread usage of potent search engines and recommendation systems on the Internet, the implications of digitization on consumer choice will be significant. Additionally, online reputation management systems have compelled firms to offer more affordable, high-quality products that compete with rival service providers and act ethically.

Replacement of Human Tasks with Digitalization

Digitalization has replaced tasks that humans formerly carried out. It has also increased certain workers’ productivity significantly. The interaction between these two forces and their effect on labour market outcomes is attractive to economists. Another digitalization effect is that it has dramatically across businesses, lowering the cost of employee communication. The contractual and geographical organization of production have changed due to this.

Many production tasks and intellectual services such as software and finance previously performed in technologically developed nations have quickly transferred to less developed ones. However, the experts working in this line in countries such as China and India enable them to earn foreign exchange. Pakistan should assist its youth in seizing these rapidly changing prospects brought about by the global economy.

Pakistan’s government must build tools to implement rules and policies relating to intellectual property and swiftly digitalize its virtual economy. The authorities should protect organizations’ and individuals’ privacy, digitization, and security against misrepresentations and fraud by morally ambiguous people operating on the Dark Net.

Pakistan’s vision of Digitalization

A country needs a clear understanding of its long-term goals to advance. Without this clarity, it will not be able to create a plan of action that makes sense or adopt and practice the policies that would help it reach its goals. A national vision is to make our collective future vision more distinct. The “Pakistani Dream,” a picture of an affluent, equitable, tolerant, and vibrant society, served as the foundation for Pakistan.

Plans are successful when they bring a country’s aspirations to life, provide equal opportunities for all, enable its citizens to play their respective roles, and assign the government a particular role as a regulator, supporter, facilitator, and provider of performance-driven services. Pakistan Vision 2025 is to be a motivating location. It will be a crucial benchmark for creating a successful strategy and game plan to realize our country’s dreams.

Many countries have confronted similar problems throughout history, effectively converting them into opportunities by employing solid economic planning, effective governance, and consistent policy implementation. Our issues also present previously unheard-of chances for dramatic advancement when adequately addressed. We must update our foundation for national development as we move through unprecedented change and complexity.

A new dedication to the founding vision is required to address the current issues and establish attainable yet ambitious goals for the future. Assuring Pakistan achieves the following objectives, for example:

• Sustainable Development Proposed Zero hunger and poverty are desired outcomes, as well as universal access to healthcare

• Providing services for modern energy and education

• Sanitation and clean water


In the age of globalization, we must wage war on Digitalization to survive and maintain our moral status in the community of nations. Many nations have taken steps to keep data online 24/7 and to transform their economies digitally. However, Pakistan is far behind in this race compared to Afghanistan and Myanmar. 

One cannot overstate the importance of moving Pakistan’s digital transformation forward. Extensive data management, artificial intelligence, and an excellent human-computer interface are the three main areas that will speed up the e-governance process. Pakistan, the world’s fifth most populous nation, is well-positioned to utilize technology for efficient policymaking, government, and service delivery.

The secret to Pakistan’s economic growth is digital connectivity. The time is now to reform, adapt to new technology, and prepare the next generation for the digital age. Digitalization can quickly improve services and prepare for the future of technology if appropriately managed. Pakistan needs a fully developed digital economy to tackle the escalating global problems through result-driven digital connectivity.

In my opinion, the opportunities presented by Digitalization in Pakistan are more significant than the obstacles. Digitalization is crucial for competitiveness since it encourages people to be more able to contribute to the global community and corporate world. Therefore, we require improvements in every aspect of life, from e-learning to e-justice and the economic model. Read more blogs!

2 thoughts on “How does Digitalization play a key role in Pakistan’s economy?”

Leave a Comment