GSMA highlights Pakistan's digitalization challenges

Pakistan's journey towards digital transformation has been a topic of discussion, with the Global System for Mobile Communications Association (GSMA) shedding light on the current scenario. According to GSMA, Pakistan lacks a clear vision for digitalization, hindering the realization of goals set by the Digital Pakistan initiative. Julian Gorman, the head of Asia Pacific for GSMA, believes that Pakistan has the potential to lead in the digital economy, thanks to its abundant pool of skilled youth. However, Gorman highlighted the underutilization of digital resources by the government and essential services, emphasizing the need for embracing e-governance to improve performance and enhance connectivity.

GSMA is gearing up for the third edition of the 'GSMA Digital Nation Summit' in Islamabad this August, aiming to unite stakeholders like investors, innovators, and regulatory bodies from various countries. Gorman envisions Pakistan transitioning into a knowledge-based economy driven by innovation and technology but stresses the importance of supportive regulatory frameworks.

While acknowledging Pakistan's progress in mobile phone penetration, Gorman expressed concerns about the impact of increased smartphone taxation on initiatives like 'Smartphone for All.' He emphasized the necessity of higher smartphone penetration rates to broaden access to digital services such as fintech. Gorman also flagged conflicting regulations in Pakistan as a barrier to digitalization progress.

Despite the economic significance of mobile phones in Pakistan, Gorman noted the low Average Revenue Per User (ARPU) and highlighted how heavy taxation could deter potential investors and innovators. He urged Pakistan to strike a balance between security and digitalization, emphasizing the importance of clear strategies and policies to maintain trust among investors and users.

Recognizing Pakistan's strong presence in the global freelance market, Gorman recommended a focus on nurturing digital skills to adapt to the evolving landscape. He stressed that digitalization is breaking traditional boundaries and called for proactive policy alignment with the demands of the digital era.

The insights shared by GSMA underscore the immense potential Pakistan holds in the digital realm. While challenges like regulatory inconsistencies and taxation issues persist, there is a clear call to action for the government and stakeholders to collaborate in realizing Pakistan's digital aspirations. By fostering digital skills, implementing supportive regulations, and striking a balance between security and innovation, Pakistan can pave the way for a thriving digital economy that benefits both investors and citizens alike.