World Bank Applauds Pakistan's Digital ID and Infrastructure Gains

Published Date : 7/9/2025 

The World Bank highlights Pakistan's strides in digital infrastructure and inclusive ID systems, emphasizing the need for expanded broadband access and digital literacy to bridge the digital divide. 

As Pakistan moves toward a more digital economy, the World Bank's 2025 Pakistan Development Update underscores the critical role of digital infrastructure and inclusive ID systems in driving equitable growth. The report highlights that while Pakistan has made significant progress, challenges like infrastructure gaps and digital literacy remain pressing issues. Expanding affordable internet access and secure digital identity frameworks is not just a technological upgrade but a foundation for improved governance, financial inclusion, and long-term development. The World Bank argues that coordinated reforms and investments in Digital Public Infrastructure (DPI) can transform Pakistan's digital gap into a platform for inclusive progress. n nThe report points to initiatives like the Emergency Cash Program during the COVID-19 pandemic, which leveraged NADRA's national ID system, and the RAAST payment network as examples of digital services enhancing public service delivery and financial inclusion. However, fundamental inequalities in infrastructure and accessibility persist, particularly for women, rural populations, and low-income households. These disparities highlight the urgent need for targeted investments and policy reforms to reduce the digital divide and ensure equitable access to digital tools. n nDespite robust digital ID and payment systems, the World Bank identifies interoperability, connectivity, and digital literacy as key challenges. Limited broadband availability, inconsistent coverage, and cost constraints hinder progress, leading to inequities in internet use and service access. The report emphasizes the importance of addressing these barriers through policy measures, such as accelerating the National Fiberization Plan, expanding last-mile and satellite connections, and reducing regulatory hurdles. By prioritizing Digital Public Infrastructure, Pakistan can unlock the transformative potential of digital technology to foster economic resilience, empower citizens, and build a more connected future. n nThe World Bank's report also highlights the importance of strengthening Digital Public Infrastructure (DPI) by integrating secure digital IDs, payment platforms, and interoperable data-sharing frameworks. These initiatives can improve service delivery, foster trust, and promote sustainable development. The report stresses that a coordinated, inclusive strategy involving both public and private sectors is essential to achieving these goals. For instance, NADRA's CNIC system has achieved widespread adult coverage (88.3%), but fully remote digital service delivery remains in its early stages. Addressing these gaps is crucial for ensuring that digital benefits reach all segments of the population. n nPakistan's digital transformation has seen notable advancements, including the expansion of government services like the Emergency Cash Program and the RAAST payment network. However, the report warns that without addressing persistent challenges, the full potential of digital inclusion cannot be realized. As of 2022, internet usage stood at 33%, with 140 million people in broadband coverage zones but not yet online. Rural areas face even greater disparities, with only 23% of households having internet access. Gender gaps in mobile phone ownership and internet adoption remain among the largest globally, underscoring the need for inclusive digital policies. n nTariq Malik, a digital ID expert and former NADRA head, praised the World Bank's report for outlining a clear path for Pakistan's digital potential. He highlighted the importance of reliable connectivity, affordable digital financial services, and citizen-centric platforms like OneID. Malik noted that from 2021 to 2023, over 7 million women gained digital IDs, narrowing the gender gap. He emphasized the need for data protection and a whole-of-government approach to build a digitally inclusive future. n nThe report also stresses the importance of digital literacy programs to ensure that all citizens can benefit from digital services. While Pakistan has made progress in expanding digital infrastructure, the lack of digital skills among certain populations remains a barrier. The World Bank recommends investing in education and training to bridge this gap and empower individuals to participate fully in the digital economy. n nIn conclusion, the World Bank's report serves as a roadmap for Pakistan's digital future, emphasizing the need for inclusive policies, infrastructure investments, and public-private collaboration. By addressing current challenges and leveraging existing initiatives, Pakistan can position itself as a leader in digital innovation and equitable development. 

Frequently Asked Questions (FAQS): 

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

A: The World Bank provides insights and recommendations to help Pakistan improve its digital systems, focusing on inclusive growth and infrastructure development through reports and policy guidance.

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

A: Key challenges include limited broadband access, inconsistent coverage, high costs, and disparities in digital literacy, particularly affecting rural areas and women.

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

A: NADRA manages Pakistan's national ID system (CNIC), providing widespread identity verification. However, fully remote digital service delivery remains underdeveloped.

Q: Why is digital inclusion important for Pakistan?

A: Digital inclusion ensures equitable access to services, economic opportunities, and governance, reducing disparities and fostering sustainable development across all population segments.

Q: What steps can Pakistan take to bridge the digital divide?

A: Pakistan should prioritize expanding broadband access, investing in digital literacy programs, and strengthening Digital Public Infrastructure to ensure inclusive and equitable digital growth. 

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