LAHORE: Over a decade since Pakistan was ranked among the lowest in the Boston Consulting Group’s 2014 e-Friction Index, recent data shows mixed progress: significant gains in some areas, but serious frictions persist that threaten to hold back the country’s digital economy.
As of January 2025, about 116 million Pakistanis ( 45.7 per cent of the population) used the internet, meaning roughly 54.3 per cent remain offline.Broadband usage (mobile + fixed) has surged. Between FY2018 and March 2025, broadband users rose from 58.7 million to 147.2 million, the growth of some 151 per cent.
But internet speeds remain a concern as Pakistan is among the bottom 12 per cent globally in mobile and broadband speed rankings per Ookla’s Speedtest. Mobile internet and broadband speeds are consistently poor.
However gender gap is narrowing. About 8 million women gained mobile internet access in 2024, reducing the gender gap in mobile internet usage from 38 per cent in 2023 to 25 per cent in 2024 — one of the sharpest drops globally. Women’s usage rose from 33 per cent to 45 per cent.
Economic contributions: the Ministry of Information Technology and Telecommunication projects that digital and IT sectors will contribute 13 per cent of GDP by 2025, up from 2.7 per cent in 2019. Meanwhile, the ICT “core industry” (more traditional telecom, etc) is expected to rise from 1.2 per cent in 2019 to about 8.15 per cent by 2025.
Despite gains, several challenges echo many of the same frictions identified in older reports like the e-Friction Index. Even with growth in broadband users, over half the population is offline. Fixed broadband penetration remains extremely low (< 2.0 per cent), and fibre connectivity is limited; many cell towers remain without fibre backhaul.
Low rankings in speed indices confirm that mere access does not equal usable access. Slow speeds reduce the utility of online services, hinder business productivity, and discourage digital entrepreneurship.
While mobile data cost has fallen dramatically (1 GB costing ~ Rs27 during early FY2025, down from over Rs70 in earlier years), regulatory constraints, inconsistent policies, taxes, and the cost of doing digital business still impede growth.
Gains in closing the gender gap are real, especially in rural areas. But barriers such as digital literacy, affordability of devices, social norms, and awareness remain large. Also, offline regions — rural, remote, poorer — continue to lag.
Users are constrained not just by infrastructure, but also in terms of reliable, uncensored information. Issues around service disruptions, restrictions, and content filtering add friction in the “information” sphere.
If Pakistan successfully reduces friction in key spheres, the payoff could be big. The digital and IT sectors’ jump to 13 per cent of GDP implies substantial growth in jobs, exports and international competitiveness. Pakistan’s digital economy could grow from about $12-15 billion in 2023 to $60-75 billion by 2030. Artificial Intelligence alone is forecast to contribute $10-20 billion in that period.
Closer digital inclusion (especially for women, rural areas) has spillover benefits: better education, health, governance, and social equity.
To turn potential into reality, Pakistan should focus on reducing friction by expanding and upgrading infrastructure. There is a need to increase fixed broadband reach, fibre backhaul for towers, roll out 5G, to improve last-mile connectivity.
The regulators must encourage competition among ISPs, better regulation of net neutrality, reduce bottlenecks. Tax authorities should simplify tax structure for digital business, ensure consistent policy framework, and support SMEs and startups to ensure favourable conditions for ICT exporters.
The government must minimise disruptions and ensure access to information is not unduly restricted. There should be transparency in regulation.
From being near the bottom in 2014, Pakistan’s digital landscape shows signs of life: rising user numbers, falling costs, narrowing gender gaps, and bold government projections. Yet much of the friction remains. For Pakistan to truly harness the power of the digital economy — not as an aspirational target but as a driver of real growth — the country must address both infrastructure and policy, quality and inclusion. The choices made now will determine whether Pakistan remains a laggard or becomes a competitive digital nation.
