A recent report from the Asian Development Bank (ADB) paints a concerning picture of Pakistan’s telecommunications sector, highlighting its slow progress in adopting 4G and 5G technologies while projecting modest growth of 3.3% annually through 2029. With the digital sector contributing just 1.5% to Pakistan’s GDP, the report underscores the urgent need for increased investment and policy reforms to bridge the digital divide.

Valued at $4.52 billion, Pakistan’s telecom market is expected to grow to $5.32 billion by 2029. However, the country trails significantly behind the 101 nations that have already rolled out commercial 5G services. Even its 4G coverage ranks among the lowest in the region, hampered by inadequate infrastructure, high telecom taxes, and limited government support for spectrum development. The ADB notes that political instability over the past five years has further stifled investment in network upgrades and digital infrastructure.

Despite 80% of Pakistan’s population having access to mobile internet, actual usage remains low due to the high cost of devices, particularly for women and low-income communities. The report reveals stark disparities, with only 33% of women online compared to 53% of men, alongside significant regional gaps in connectivity. Fixed broadband access is also critically limited, at just 1.3%, with fiber optic networks sorely underdeveloped.

To address these challenges, the ADB calls for urgent expansion of fiber optic infrastructure, particularly in underserved and rural areas. It recommends that provincial governments prioritize deploying fiber broadband in public institutions like schools and hospitals to boost demand. Additionally, the report urges a reduction in Pakistan’s high telecom taxes, which are the steepest in the region and deter investment.

The ADB emphasizes the need for targeted initiatives to enhance digital inclusion, particularly for women and youth in rural areas, through training in online business skills. By fostering a more investment-friendly environment and addressing infrastructure gaps, Pakistan could unlock the potential of its digital economy, which remains underdeveloped compared to global standards.