Digital Pakistan: Building a Connected and Inclusive Digital Economy

Examining how satellite broadband, digital public infrastructure, and fintech reforms are transforming Pakistan into a more connected, transparent, and inclusive digital economy.

Pakistan’s geography has long posed a structural constraint to digital inclusion. Vast rural expanses, mountainous terrain, and sparsely populated regions have made traditional fibre and mobile broadband networks commercially unviable in large parts of the country. As a result, connectivity gaps reinforced economic exclusion, limited access to public services, and constrained productivity. By 2026, however, Pakistan’s digital strategy reflects a decisive shift: satellite broadband, digital public infrastructure, and fintech are converging to transform connectivity from a privilege into a nationwide public good.

Satellite broadband has emerged as the backbone of this transformation. Recognizing its strategic importance, the Pakistan Telecommunication Authority introduced a dedicated satellite broadband licensing framework, opening the market to global and regional providers. Low Earth Orbit (LEO) services are central to this expansion. Starlink is progressing toward a full commercial launch by late 2025 or early 2026, subject to regulatory clearances and a commercial agreement with SUPARCO. Amazon’s Project Kuiper is targeting rollout by the end of 2026. Domestically, the launch of PakSat-MM1 in 2024 and Ka-band services through partnerships such as Kacific–PAKSAT are already delivering affordable internet to remote communities.

These initiatives align closely with the Digital Nation Fund, established under 2025 legislation, which committed USD 50 million to connect 15 million rural users by 2026. By late 2025, Pakistan’s internet penetration had reached approximately 45.6 percent, translating to around 117 million users. Mobile broadband subscriptions stood between 130 and 148 million, while fixed broadband remained limited at about 3.3 million connections. Satellite connectivity is therefore playing a decisive role in expanding coverage in Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan, enabling e-learning, telemedicine, e-commerce, and access to digital public services where none previously existed.

Rather than replacing terrestrial networks, satellite broadband is anchoring a hybrid connectivity model. The planned 5G spectrum auction, targeted for February 2026, is expected to enhance urban capacity and industrial use cases, while satellites ensure nationwide reach. Together, they represent a connectivity architecture designed to prevent digital exclusion rather than deepen it.

Improved connectivity has directly strengthened Pakistan’s e-governance ecosystem. At its core is NADRA, whose biometric database of over 125 million Computerised National Identity Cards underpins secure digital verification across both public and private platforms. This infrastructure has enabled a shift from fragmented service delivery toward integrated, citizen-centric digital governance.

A notable example is the Ehsaas e-Pension System in Khyber Pakhtunkhwa, launched on 1 January 2026 and formally inaugurated on 15 January 2026. By linking pension disbursements directly to NADRA, the Accountant General, and commercial banks, the system eliminated manual verification, paperwork, and delays. Nationally, programs such as Ehsaas and the Benazir Income Support Programme leverage NADRA and mobile banking to deliver targeted cash transfers, reducing leakages and strengthening transparency.

Digital public services have expanded rapidly. The Pakistan Citizen Portal enables biometric-verified grievance redressal in real time, while QR-based payments for NADRA services and the Pak-Identity app’s “Proof of Life” feature have reduced processing times and administrative friction. These reforms contributed to Pakistan’s improved ranking in the UN E-Government Development Index in 2025, reflecting progress in online services and digital identity. Institutional coordination is now led by the Pakistan Digital Authority, established under the 2025 Act, which oversees interoperability, cybersecurity, and digital standards across government. Supporting infrastructure has expanded in parallel, with new fibre backbones, upgraded international gateways, and three submarine cables landing in 2025. Digital platforms such as ParkApp, serving over 1.3 million users and facilitating PKR 22.86 billion in tax-linked revenue, and the National Job Portal, hosting more than 510,000 CVs, illustrate the growing scale of smart governance.

One of the most consequential reforms lies in Digital Public Infrastructure. The e-Office initiative, achieving 100 percent adoption across 38 divisions, reduced file processing times from 25 days to just four. In doing so, it not only saved an estimated PKR 9.5 billion but also dismantled entrenched red-tape practices that historically deterred investment. Real-time dashboards and paperless workflows have made transparency structural rather than discretionary. Parallel to governance reforms, Pakistan’s fintech ecosystem has driven a rapid shift toward digital finance. Regulatory support from the State Bank of Pakistan and platforms such as Raast, the national instant payment system, have accelerated adoption of low-cost, real-time transactions. Since inception, Raast has processed approximately 1.9 billion transactions worth PKR 44.3 trillion, covering person-to-person, person-to-merchant, and government-to-person payments.

Digital payments have grown by around 38 percent, supported by more than 731,000 branchless banking agents nationwide. JazzCash alone processed PKR 10.7 trillion in transactions by March 2025, backed by over 120,000 agents. Venture capital investment has shown recovery, reaching USD 52.5 million in the first half of 2025, with cumulative funding of USD 391 million across 450 companies. The digital payments market is projected to reach USD 36 billion, while financial inclusion is expected to rise toward 75 percent of adults by 2028.

By 2026, Pakistan’s digital transformation reflects a structural convergence. Satellite broadband is bridging geography, NADRA-enabled systems are delivering transparent public services, and instant digital payments are reshaping commerce and inclusion. While challenges remain in cybersecurity, the trajectory is clear. Digital connectivity is no longer an auxiliary policy objective; it has become a central pillar of state capacity, productivity, and inclusive national growth.

Also See: Pakistan’s Digital Escape Route

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