World Bank Praises Pakistan's Digital Progress and Inclusive ID Systems

Published Date : 7/9/2025 

The World Bank's latest report underscores Pakistan's advancements in digital infrastructure and inclusive ID systems, emphasizing the need for equitable internet access, secure digital identities, and robust financial inclusion. Challenges like rural connectivity gaps and gender disparities remain critical hurdles to overcome. 

As Pakistan transitions toward a more digital economy, the World Bank’s 2025 Pakistan Development Update highlights the urgent need to bridge the digital divide. The report stresses that expanding access to affordable internet and secure digital identity systems is not just a technological goal but a cornerstone for improved governance, economic resilience, and long-term growth. With coordinated reforms and investments in Digital Public Infrastructure (DPI), Pakistan has the potential to transform its digital gap into a platform for inclusive progress. n n nThe report points out that Pakistan has made notable strides in digital transformation, particularly through initiatives like the Emergency Cash Program during the COVID-19 pandemic, which leveraged the National Database and Registration Authority (NADRA)’s national ID system. Additionally, the RAAST payment system has demonstrated the growing role of digital services in enhancing public service delivery and financial inclusion. However, persistent inequalities in infrastructure and accessibility reveal the need for further investment and reform, especially for women, rural populations, and low-income households. n n nDespite progress, the World Bank notes that interoperability, connectivity, and digital literacy remain significant challenges. Limited broadband availability, inconsistent coverage, and cost barriers continue to hinder progress, creating disparities in internet use and service access. These issues are particularly acute in rural areas, where only 23% of households have internet access, and gender disparities in mobile phone ownership and internet adoption remain among the highest globally. While Pakistan has achieved near-universal national ID coverage for adults (88.3%), a 22-point gender gap highlights the need for improved access and usability of digital systems. n n nThe World Bank recommends policy measures to address broadband infrastructure gaps, including accelerating the National Fiberization Plan, expanding last-mile and satellite connections, and reducing regulatory obstacles. Developing DPI, which includes secure digital IDs, payment platforms, and data-sharing tools, is crucial for improving service delivery and inclusion. By fostering a coordinated, inclusive strategy with public-private partnerships, Pakistan can unlock the transformative potential of digital technology to support economic growth and empower citizens. n n nThe report also emphasizes the importance of digital public infrastructure (DPI) in creating a more connected future. Initiatives like NADRA’s CNIC system have provided widespread identity verification, but fully remote digital service delivery is still in its early stages. Strengthening DPI requires integrating secure digital IDs, payment systems, and interoperable data frameworks to enhance trust and promote sustainable development. Experts like Tariq Malik, a former NADRA head and digital ID specialist, highlight the need for reliable connectivity, inclusive financial services, and citizen-centric platforms like OneID. He notes that from 2021 to 2023, over 7 million women gained digital IDs, narrowing the gender gap significantly. n n nIn rural and underserved areas, the digital divide persists. As of 2022, 140 million people lived in broadband coverage zones but remained offline due to cost or lack of infrastructure. Addressing these gaps requires targeted investments in connectivity, device affordability, and digital literacy programs. The World Bank’s report also underscores the role of financial inclusion, with digital payment systems like RAAST enabling faster and more transparent access to government services. However, without addressing systemic barriers, the benefits of digital transformation may remain out of reach for many. n n nThe report concludes that Pakistan’s digital future depends on a holistic approach. By prioritizing inclusive ID systems, expanding broadband access, and fostering public-private collaboration, the country can build a more equitable digital ecosystem. The World Bank’s findings serve as a roadmap for policymakers to ensure that digital progress benefits all citizens, regardless of geography or socioeconomic status. 

Frequently Asked Questions (FAQS): 

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

A: Pakistan faces challenges such as limited broadband availability, inconsistent internet coverage, and high costs, which hinder equitable access. Rural areas and low-income households are particularly affected, with only 23% of rural households having internet access. Gender disparities in mobile phone ownership and internet adoption also remain significant.

Q: How is NADRA contributing to digital ID systems in Pakistan?

A: NADRA, the National Database and Registration Authority, manages Pakistan’s national ID system (CNIC), providing widespread identity verification. It has played a critical role in initiatives like the Emergency Cash Program and the RAAST payment system. However, fully remote digital service delivery is still in early stages, and efforts to bridge the gender gap in ID access are ongoing.

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

A: The World Bank supports Pakistan’s digital transformation by advocating for policies that expand broadband access, strengthen digital public infrastructure (DPI), and promote financial inclusion. Its reports highlight the need for coordinated reforms, investments in connectivity, and public-private partnerships to ensure equitable digital progress.

Q: What initiatives are addressing financial inclusion in Pakistan?

A: Initiatives like the RAAST payment system and the Emergency Cash Program during the pandemic have expanded financial inclusion by leveraging digital platforms. These efforts aim to provide transparent, efficient access to government services and reduce reliance on cash-based transactions, particularly for marginalized communities.

Q: How can digital public infrastructure improve service delivery in Pakistan?

A: Digital public infrastructure (DPI) integrates secure digital IDs, payment systems, and data-sharing frameworks, enhancing transparency and efficiency in public services. By fostering interoperability and trust, DPI can reduce bureaucratic delays, improve access to financial services, and empower citizens through a more connected digital ecosystem. 

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