World Bank Acknowledges Pakistan's Digital Growth and Inclusive ID Systems

Published Date : 7/9/2025 

The World Bank's 2025 report highlights Pakistan's strides in digital transformation, emphasizing the role of digital ID systems and infrastructure in fostering financial inclusion and equitable service delivery. Despite challenges, initiatives like NADRA's CNIC and RAAST payments showcase progress, but gaps in connectivity and literacy remain critical hurdles. 

As Pakistan moves toward a more digital economy, the World Bank’s 2025 Pakistan Development Update underscores the critical need for expanding digital connections and refining digital identity systems. These efforts are seen as vital for equitable service delivery, economic resilience, and long-term development. The report argues that improving access to affordable internet and secure digital identity isn’t just a tech upgrade but a foundational step toward better governance, financial inclusion, and equal opportunities. With coordinated reforms and investments in Digital Public Infrastructure (DPI), Pakistan has the potential to turn its digital gap into a platform for inclusive progress. n n nThe report highlights Pakistan’s progress in digital transformation, citing initiatives like the Emergency Cash Program during the pandemic, which leveraged NADRA’s national ID system, and the RAAST payment system. These examples demonstrate how digital services are strengthening public service delivery and financial inclusion. However, the report also points out persistent inequalities in infrastructure and accessibility, stressing the need for more investment and policy reforms to bridge the digital divide, especially for women, rural communities, and low-income households. n n nA key focus of the World Bank’s analysis is the importance of interoperability, connectivity, and digital literacy. While Pakistan has robust digital ID and payment systems, limited broadband availability, inconsistent coverage, and cost barriers continue to hinder progress. These issues create disparities in internet use and access to essential services. The report recommends policy measures to address these gaps, including accelerating the National Fiberization Plan, expanding last-mile and satellite connections, and reducing regulatory obstacles to make devices more affordable. n n nThe World Bank emphasizes that developing DPI—secure digital IDs, payment platforms, and data-sharing tools—is crucial for improving service delivery and inclusion. By adopting a coordinated, inclusive strategy and fostering public-private partnerships, Pakistan can unlock the transformative potential of digital technology to drive growth, empower citizens, and build a more connected future. n n nDespite progress, challenges remain. As of 2022, only 33% of Pakistan’s population used the internet, with 140 million people living in broadband coverage zones but still offline. Rural areas face the steepest disparities, with just 23% of households having internet access. Gender gaps in mobile phone ownership and internet adoption are also significant, underscoring the need for policies that prioritize inclusivity. While 88.3% of adults have national ID coverage, a 22-point gender gap highlights the need for better access and usability. n n nThe World Bank’s report also calls for integrating secure digital ID systems with payment platforms and interoperable data frameworks. These steps could enhance trust, improve service delivery, and promote sustainable development. Tariq Malik, a digital ID expert and former NADRA head, praised the report for outlining a clear path to unlock Pakistan’s digital potential. He emphasized the importance of affordable connectivity, inclusive financial services, and platforms like OneID, noting that over 7 million women gained digital IDs between 2021 and 2023, narrowing the gender gap. He stressed that data protection and a whole-of-government approach are key to a digitally inclusive future. 

Frequently Asked Questions (FAQS): 

Q: What role does the World Bank play in Pakistan's digital transformation?

A: The World Bank supports Pakistan's digital transformation by analyzing challenges, recommending policies, and promoting investments in digital infrastructure. Their reports highlight the need for expanding broadband access, improving digital literacy, and strengthening systems like NADRA’s CNIC to ensure equitable service delivery.

Q: What are the main challenges in Pakistan's digital infrastructure?

A: Key challenges include limited broadband availability, inconsistent coverage, high costs, and disparities in access between urban and rural areas. Gender gaps in mobile ownership and internet adoption also hinder progress, requiring targeted policies to address inequalities.

Q: How does NADRA contribute to Pakistan's digital ID system?

A: NADRA (National Database and Registration Authority) manages Pakistan’s national ID system, known as CNIC, which provides widespread identity verification. This system is critical for digital services like the RAAST payment network and the Emergency Cash Program, ensuring secure and inclusive service delivery.

Q: Why is Digital Public Infrastructure (DPI) important for Pakistan?

A: DPI includes secure digital IDs, payment platforms, and data-sharing tools that improve service delivery, foster trust, and promote sustainable development. By integrating these systems, Pakistan can enhance governance, financial inclusion, and economic resilience.

Q: What progress has been made in closing the gender gap in digital access?

A: Over 7 million women gained digital IDs between 2021 and 2023, significantly reducing the gender gap. However, disparities in mobile phone ownership and internet adoption remain, highlighting the need for continued efforts to ensure inclusive digital policies. 

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