Digital Momentum

The Nation

Published Date: May 12, 2026

Published On: The Nation

Pakistan’s digital economy is beginning to show the results of sustained attention. The prime minister has been told that IT exports are expected to reach between $4.5 billion and $4.6 billion in the current fiscal year, while domestic internet connections have risen from 1.9 million in 2024 to 5.1 million in 2026. The recent 5G spectrum auction, which generated $509 million, is another sign that the country is finally recognising where the next wave of economic growth will come from.

This deserves appreciation. For too long, Pakistan treated technology as a support sector rather than a central pillar of national development. The government’s push to build a digital export economy shows a clearer understanding of the future. With a young population, a large English-speaking workforce, competitive costs and a growing pool of freelancers, software houses and start-ups, Pakistan has a rare opening to position itself as a serious technology services market. Initiatives such as Indus AI Week, fibre connectivity for schools and health units, free internet hotspots and e-learning pods point in the right direction.

But progress must not be mistaken for arrival. Pakistan’s IT exports remain far below the scale achieved by regional competitors such as India and Vietnam. These countries did not grow through talent alone. They built reliable connectivity, stable policy frameworks, payment systems, investor confidence, specialised training pipelines and urban technology clusters capable of serving global clients at scale.

That is where Pakistan still lags. A 5G auction is a major step, but ordinary internet service remains patchy, expensive and unreliable by global standards. Frequent disruptions, weak fibre penetration, uneven rural access, limited cloud infrastructure, skills gaps and inconsistent regulation all hold the sector back.

The direction is correct, and the early gains are encouraging. The task now is to turn momentum into scale. Pakistan has recognised the future. It must now build the systems needed to compete in it.