Digital inclusion for economic transformation

The recent agreement on the financial package from the International Monetary Fund brings a sigh of relief for Pakistan’s economy. However, it is vital that we view this as an opportunity to strive for self-reliance and long-term stability. To achieve economic transformation, digital inclusion must become a top priority. With over 53 per cent broadband penetration, Pakistan currently has 127 million broadband subscribers, out of which 124m use the internet on mobile phones. Sadly, nearly half of Pakistan’s population is still offline, underscoring the urgent need for comprehensive measures to bring at least an additional 50m Pakistanis online within the next two years. By enabling our citizens to access vital services such as education, healthcare, and finance, we can foster a prosperous future for all. To facilitate the transition toward digital inclusion, policymakers may consider specific measures. Currently, Pakistan is one of the highest-taxed telecom markets in the world, with a 34.5pc tax on essential telecom services. Terming high taxation as a deterrent in achieving economic efficiency and growth, an International Monetary Fund working paper titled ‘Taxing Telecommunications in Developing Countries’ stated that tax measures that decrease or slow down cell phone penetration could bring short-term revenue benefits for the government at the expense of long term benefits for all.