Pakistan’s economy has breathed a sigh of relief following the recent agreement on the International Monetary Fund’s monetary policy. However, it is important to view this as an opportunity for self-reliance and long-term stability. To achieve economic transformation, digital inclusion must be a top priority.
With a broadband penetration rate of over 53%, Pakistan currently has 127 million broadband subscribers, of whom 124 million use the Internet via mobile phones. Unfortunately, nearly half of Pakistan’s population remains offline, highlighting the urgent need for comprehensive action to bring at least another 50 million Pakistanis online within the next two years. It is By providing citizens with access to essential services such as education, health care and finance, we can foster a prosperous future for all.
Concrete steps can be considered by policy makers to facilitate the transition to digital inclusion.
Pakistan is currently one of the most heavily taxed telecommunications markets in the world, with mandatory telecommunications services taxed at her 34.5%. Reducing taxes is very important as it improves affordability and accessibility for a large portion of the population. In addition to the broader economic benefits of increased broadband penetration, increased adoption due to tax rationalization could increase government tax revenues in the long term.
Various studies show that the affordability of smartphones is a major barrier to providing Internet access to low-income segments of society. In its report, Strategies for Universal Smartphone Access, the Broadband Commission stressed that smartphone costs could exceed 70 percent of average monthly income in many low- and middle-income countries.
