Pakistan’s aspiring journey to secure digital identity examined

Pakistan has achieved significant progress in digital public infrastructure (DPI), the World Economic Forum reports, which is important for promoting financial inclusion and citizen empowerment. Some key interventions like the development of national digital identity systems, and mobile money transfer initiatives have had remarkable success to date. The United Nations Development Programme (UNDP) similarly identifies these digital strides as having the potential to propel socioeconomic conditions if there is better governance and strategic implementation. Embracing this journey to digitization signifies Pakistan’s resolve to use technology as a means for socio-economic progress and resilience hence being a leading nation in this respect globally.

Pakistan’s digital public infrastructure DPI initiatives

The World Economic Forum explains in its report, co-authored by former NADRA Chair and current World Bank Technical Advisor for Digital Public Infrastructure and Digital ID Tariq Malik, that Pakistan’s DPI initiatives have been vital to the development of financial access and citizens’ advancement. The story of a rural woman named Manzoora provides a prime example in the report demonstrating how mobile cash transfer programs can make a difference in people’s lives. NADRA has contributed by establishing a comprehensive digital identity system in which the Computerized National Identity Card (CNIC), contactless biometric verification app, Nishan Pakistan, and digital census are digital initiatives with significant long-term benefits. Digital schemes like the Asaan Mobile Account (AMA) launched in 2021 have garnered around ten million mobile accounts, with 40 percent being owned by women. AMA simplifies the process of mobile banking and promotes financial inclusion in the unbanked population. The RAAST  instant payment system scheme of the State Bank of Pakistan demonstrates how digital IDs are attached to banking and communication services for improved financial transactions and inclusion. The programs have transformed public service delivery and increased economic participation and resilience.

It is also important that these initiatives are mobile-based, as the UNDP notes that 127 million out of 130 million broadband users connect through mobile devices.

Political and legal frameworks supporting DPI

Pakistan has set up a political and legal framework behind its DPI. Citizen registration was protected in the 1973 constitution of Pakistan, and the NADRA ordinance 2000 included different database integration, but the legislative amendments made in 2012 have proven critical, according to the WEF. Government policies have also been implemented to enable digital transformation with regulatory support for initiatives such as mobile banking and digital payments. To secure the digital economy’s growth, there are legal frameworks on data protection, privacy, and cybersecurity that provide a secure environment for digital innovation.

DPI and crisis management

Pakistan’s digital infrastructure was important in managing the COVID-19 pandemic and enabled targeted cash transfers, the WEF notes. Digital platforms were employed to expedite the distribution of emergency funds to the vulnerable population leading to speedy aid during the pandemic. Initiatives such as the Benazir Income Support Program (BISP) employed technology and reached millions of families. Pakistan has aligned with Better Than Cash Alliance’s 10-point action plan, which focuses on the use of digital payments for financial inclusion and resilience during emergencies. These measures highlight the pivotal role digital infrastructure plays in ensuring effective crisis management and social safety networks are put in place.

Challenges and future scenarios

Improving NADRA’s digital database faces data privacy concerns and integration challenges. Future projects by DPI in Pakistan will confront these challenges by scaling up the RAAST payment system, creating digital health records, and implementing blockchain-based land registries. These projects hold the potential for improved effectiveness and transparency that further inspires national digitalization, thereby promoting the financial inclusion of its citizens in the process.

UNDP’s evaluation of digital transformation in Pakistan

UNDP National Human Development Report explains that Digital technology has reached 50 percent of the population in the developing world in just two decades. However, Pakistan is ranked poorly on the Human Development Index (HDI), at 164 out of 193 countries, and also performs badly on global digital indices such as the World Internet Development Index where it comes out as 45th among 52 nations. The United Nations Roadmap for Digital Cooperation outlines that by 2030 every individual should have safe, affordable, and meaningful access to technology. Pakistan however, despite its strong policy commitment is still early in its digital transformation. Technology risks deepening existing deprivations and inequalities without better governance and regulation. The report Access, Adopt, Anticipate, Accelerate by UNDP’s NHD delves into how digital transformation serves as a major driver to lift the socioeconomic fabric of Pakistan. It maps a way forward towards having digital empowerment as a right rather than a privilege marking its transformative potential against daunting challenges. Although there are uneven levels of access to digital technologies, purposeful strategic interventions can fill these gaps thereby ensuring inclusive growth and human development.

Digital access challenges

UNDP report highlights that a large section 47 percent, of the total population of Pakistan, lacks access to the Internet due to poor infrastructure and affordability impediments. Of the sections that are connected, 93.2 percent use it mainly for entertainment purposes while only 11.9 percent use it for e-learning. Inadequate digital literacy skills, particularly among women and marginalized groups, hinder the effective use of technology as a tool for development. Despite being an important medium of communication and information dissemination in the modern world, high costs hinder many people from accessing relevant technologies including devices and services. This has been accompanied by a notable gender divide concerning owning digital devices or having digital skills where women are at a disadvantage compared to men.

Theory of change in digital transformation

Districts in Pakistan exist between higher levels of digital skills encompassing computers, digital devices, the internet, and digital learning and better human development outcomes in terms of education, health, and well-being. This finding is based on data from Pakistan’s Social and Living Standards Measurement (2019-2020), which has been used as the basis for UNDP’s NHD report research on using digital technology to improve human development. If Pakistan can improve its digital capabilities, innovation, investment, and policy reforms focusing on highlighted sectors it will lead to improved outcomes in areas such as digital infrastructure, governance, job creation, growth path, and resilience all together resulting in a cumulative change in the country’s human development indicators. For inclusive growth and service delivery improvements, the NHD report’s Digital Transformation Model identifies key sectors like governance, basic social services, climate change, economic growth, and human security that could be approached through reforming policies, innovative approaches, or even investments in digital-technology. These changes could significantly increase the HDI ranking of Pakistan.

Pakistan’s DPI, including digital identity systems, have advanced, leading to improved socio-economic growth. However, success depends on overcoming data privacy and integration challenges, as well as bridging gaps in infrastructure with digital connectivity.

Article Topics

biometrics  |  digital identity  |  digital inclusion  |  Digital Pakistan  |  digital public infrastructure  |  financial inclusion  |  NADRA  |  national ID  |  Pakistan  |  UNDP  |  World Economic Forum