World Bank highlights Pakistan’s progress on digital infrastructure, inclusive ID

As Pakistan transitions to a more digital economy, access, infrastructure, and inclusion remain major challenges. The World Bank’s Pakistan Development Update 2025 emphasizes the importance of increasing digital connections and enhancing digital ID systems for equitable service delivery, economic resilience, and long-term development.  Expanding access to affordable internet and secure digital identity is more than just a technological advancement; it serves as the cornerstone for improved governance, financial inclusion, and equitable opportunity. With coordinated reforms and investments in Digital Public Infrastructure (DPI), Pakistan can transform its digital gap into a platform for inclusive progress, the World Bank argues.

According to the World Bank report, Pakistan is making significant progress in its digital transformation journey, with initiatives such as the Emergency Cash Program during COVID-19, leveraging national ID managed by NADRA, and the RAAST payment system, demonstrating the expanding role of digital services in strengthening public service delivery and financial inclusion. However, fundamental inequalities in infrastructure and accessibility highlight the need for additional investment and reform to reduce the digital divide, particularly for women, rural regions, and low-income households.

The World Bank observes that, while Pakistan has robust digital ID and payment systems, interoperability, connectivity, and digital literacy remain issues. Limited broadband availability, inconsistent coverage, and cost constraints all impede progress and lead to injustices in internet use and service access.

To resolve these challenges, the World Bank research suggests that policy measures are required to address broadband infrastructure access and demand gaps for the country to reach its digital potential, speeding up the National Fiberization Plan, increasing last-mile and satellite connections, encouraging device affordability, and minimizing policy and regulatory obstacles. To improve service delivery and inclusion, a top objective is to develop DPI, which includes secure digital IDs, payment platforms, and data-sharing tools. Pakistan can unleash the revolutionary potential of digital technology to support long-term growth, empower citizens, and build a more connected future through a coordinated, inclusive strategy and public-private engagement.

Bridging Pakistan’s digital divide with inclusive ID reform

Pakistan has made significant progress toward digital transformation, with a thriving digital economy and expanded government services such as the Emergency Cash Program and the RAAST payment network. However, the recent World Bank’s Pakistan Development Update report states that persistent problems must be addressed in order to fully obtain the benefits of digital inclusion.

As of 2022, internet usage was at 33 percent, with approximately 140 million people residing in broadband coverage zones but not yet online. Disparities are more severe in rural areas, where just 23 percent of households have internet access. Furthermore, gender disparities in mobile phone ownership and internet adoption remain among the largest in the world, emphasizing the importance of inclusive digital policies.

While Pakistan has achieved significant national ID coverage among adults (88.3 percent), a 22-point gender discrepancy highlights the need for improved access and usefulness. The NADRA-operated CNIC system provides widespread identity verification, but fully remote digital service delivery is still in its early stages.

The World Bank highlights the need to strengthen DPI by integrating secure digital ID, payment systems, and interoperable data-sharing frameworks. These initiatives can improve service delivery, foster trust, and promote inclusive and sustainable development across the country.

Commenting on the World Bank’s Pakistan development update report through a LinkedIn post, Tariq Malik, a renowned digital ID expert and former head of NADRA, highlighted that the report outlines a clear path for opening Pakistan’s digital potential. He emphasized the importance of reliable and affordable connectivity, inclusive digital financial services, and citizen-centric platforms like OneID. Tariq Malik noted that from 2021 to 2023, over 7 million women gained digital IDs, significantly narrowing the gender gap. He underlined that increasing trust through data protection and a whole-of-government approach is key to a digitally inclusive future.

Article Topics

digital ID  |  digital inclusion  |  digital public infrastructure  |  financial inclusion  |  NADRA  |  Pakistan  |  World Bank