Digital economy in Pakistan has seen an upward trajectory. As per records, the digital economy has grown by 34% in 2022, with e-commerce playing a pivotal role. Examples are E-commerce platforms like Daraz, Food Panda, and many more online e-commerce leading the marketplace. They have both national and international brands to provide to the online consumers.
Digital economy in Pakistan has taken over as a storm, from online shopping to virtual tours and meetings. It has evolved and is expected to keep on transforming immensely. It has changed our lives to the unexpected digital advancement.
We can look at the trending digitalization in the world, taking over widely the economies and industries. How digitalization is keenly and rapidly in the process. As per the statistics of McKinsey, digitalization could add $13 trillion to global GDP by 2030
This digital transformation completely took over the globe during the COVID-19 pandemic. In contrast, it was the dire need of that time. It further accelerated the digital growth, e-commerce, and fintech. Digitalization transformation appeared in all fields as people started relying on digital channels for all their daily needs in everyday entertainment, work, health, and education.
The economy in Pakistan, as a result of digital transformation, has enhanced to a great extent. Digital banking channels, food applications, and many more digital instruments have come into existence increasingly. In fact, the global fintech market is expected to reach USD 936.51 billion by 2030.
There is enormous potential for digitalization in Pakistan. The number of internet users has increased by 87.35 million in January 2023 in Pakistan. The internet penetration rate is 36.7 percent of the total population.
Positive Impact of Digital Economy in Pakistan
Digitalization has numerous positive impacts on the economy in Pakistan. A couple of them are discussed here.
- Financial inclusion in the banking sector.
- Boosting productivity and efficiency.
- Enabling e-commerce increases exports.
- Competition in the relevant fields.
- Revolutionizes Pakistan’s future.
- Introduction and inauguration of new digital skills.
- Availability of latest digital trends.
- Access and usage to artificial intelligence.
- Businesses can operate with unique transformations.
- Delivers value to the customers.
Digital commercial real estate in Pakistan is incredibly trusted in Pakistan. These days, the usability of prepaid channels has increased and kept on rising. Also, due to it, the infrastructures plan to facilitate digital payments/ electronic means of payment, especially at the retail level.
Hence, several borrowers benefit from terms of getting secured loans and benefit the investors in securing a higher return on capital in comparison to what they had been receiving while they previously invested in the banks.
These e-stamping and digital changes will prevent tax pilferage resulting from the understatement of property values that previously used to be the common malpractice in manual stamping. Due to this, there has been increased collection of stamp duties since the inception of this system.
Digital economy in Pakistan has given farmers the opportunity to avail and make use of an Interactive Voice Response (IVR) through their mobile phones for reviewing orders, tracking, and placing orders. Due to this advanced system inauguration, the holding time for orders and submissions has decreased from 4-6 months previously to 15-30 days.
What lies Ahead? The Industrial Revolution in Digital Economy in Pakistan
The technological advancements in the growing economies galvanize it. As it brings in the industrial revolution, changes the paradigms to cutting-edge technologies along with artificial intelligence, unleashed advent in the 21st century into speed, breadth, and important key features for the fourth industrial revolution in services and industrial sector. It provides machine learning, robotics, 3D printing, blockchain, and entire systems of technological advancements.
Yet the country is in the state of diaspora as it needs compliments by the ministries, think tanks, and academia so that the country does not miss out on the fourth industrial revolution. All the incubation centers, ministries, academia, think tanks, regulators, tax authorities, and large ICT firms are in need of this digital revolutionary economy ahead.
The Role of Fintech in the Digital Economy of Pakistan
Fintech has gained importance and has become an essential function in Pakistan’s digital economy right after the pandemic. As social distancing and lockdowns rose, fintech was the only option and guideline for the government to survive. It helped the government with several relief measures, especially in the tax relief policies and government-based funding to Micro, small, and medium enterprises. The primary functions played by the fintech are as follows. They include significant elements mentioned below.
- Fostering fintech promotes financial inclusion and develops financial markets.
- Fintech reinforces competition and commitment to open free, contestable markets.
- It safeguards the integrity of financial systems.
- It helps modernize the legal frameworks to provide an enabling legal landscape.
- It enhances collective surveillance of the international financial system and monetary framework.
- Encourages international information sharing and cooperation.
- It embraces the promise of fintech.
- Development monitoring is closely done to understand the evolving financial system.
- Ensures the stability of domestic monetary and financial systems.
- It adapts regularity frameworks and supervisory practices for the orderly development and stability of the financial system.
Conclusion: Cutting-Edge Digital Economy in Pakistan
Hence, overall, the digital economy in Pakistan is expanding in different fields, and the healthcare industry is positively impacted. The doctors can carry on virtual consultations with customers, and minor issues can be handled easily. Even in the tourism industry, tourism can be carried out with the help of virtual travel. The people can make money in the virtual social economy.
The unprecedented growth of the digital economy in Pakistan is leading to the fantastic realms of e-commerce and fintech. The advancement of technology brings in connectivity and innovation. Pakistan is lucky to be standing on the road to success in digital technological advancement. It is primarily the combined efforts of businesses, policymakers, and entrepreneurs. Hence, the journey has begun for the digital tech industry in Pakistan.
Moreover, online shopping can be done in the growing industry as it reduces the hassle of physical shopping. E-commerce in Pakistan is on the way to a phenomenal rise, and it does not limit itself to consumer goods.
Even digital real estate is part of this plethora of expansion and growth. It includes the fintech, an industry that revolutionizes the financial transactions. It emphasizes that traditional financial systems can showcase innovative technological development by reshaping the digital economy in Pakistan.
