A recently published report by the Asian Development Bank (ADB) has raised concerns over Pakistan’s performance in digitally delivered trade. Despite its strategic location linking South and Central Asia, Pakistan continues to lag behind regional peers in reform implementation and regulatory modernization.
Key findings:
- In 2024, Pakistan’s digitally delivered trade reached USD 7.93 billion, far below figures posted by ASEAN countries such as Malaysia, the Philippines, and Thailand.
- Weak policy coordination and inadequate data infrastructure are major barriers. Regulatory fragmentation and inconsistent cross-border e-commerce rules also hamper growth.
- Authorities have expressed intent to improve, including steps to integrate digital payment systems and improve cross-border e-commerce policies. But activists and business leaders say progress is slow.
Why this matters:
- Digital trade offers high margins, global reach, and potential for SMEs to gain international customers without heavy traditional export costs.
- Strengthening digital trade can diversify Pakistan’s export base, reduce reliance on commodity exports, and better withstand global supply chain shocks.
Challenges & Recommendations:
- Upgrading regulatory frameworks with clarity on digital service taxes, cross-border data flows, and consumer protection
- Improving infrastructure: faster internet, better logistics for digital goods, a reliable payment system
- Capacity building for SMEs and exporters to meet the standards of international e-commerce platforms
Pakistan has significant untapped potential in digital trade. If policy reforms are enacted with urgency and infrastructure gaps addressed, the country could see sharp gains in export revenues, SME growth, and global competitiveness.
