Digital Pakistan 2023: Technology Transforming Women's Lives in Rural Pakistan

Growing access to smartphones and Internet connectivity is transforming the lives of women in rural Pakistan. They are acquiring knowledge, accessing healthcare and finding economic opportunities.  A recent UNDP report  titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood describes the socioeconomic impact of technology in Pakistan in the following words:

"The world as we know it has been and is rapidly changing. Technology has proven to be one of the biggest enablers of change. There has been a significant emphasis on digital trainings, tech education, and freelancing in the last several years especially during the pandemic, through initiatives from the government, private and development sectors. Covid-19 acted as a big disrupter and accelerated the digital uptake many folds. In Pakistan, we saw the highest number of digital wallets, online services, internet-based services and adaptability out of need and demand". 

Pakistani Women in South Punjab. Photo by Shuja Hakim UNDP Pakistan

Digital Transformation:

The report cites the example of Ayesha Abushakoor from Zawar Wala in South Punjab who is a Quran teacher. She is teaching students remotely in and outside Pakistan. She uses digital wallets to receive payments. The same report also cites the case of Samina, from Muzafargharh, who is getting training online to start a livestock business. Another woman Mujahida Perveen from UC Pega in Dera Ghazi Khan is managing her thyroid disease by watching YouTube videos. 

Telehealth is helping more women access healthcare in remote areas of Pakistan. Startups like Sehat Kahani are employing women doctors who work from home to provide healthcare services. Sehat Kahani was founded by Dr. Sara Khurram and Dr. Iffat Zafar who raised seed funding of US$ 500,000 in 2018, followed by a pre-series of $1 million in March 2021. 

Expansion of Digital Services: 

The year 2022 was a very rough year for Pakistan. The nation was hit by devastating floods that badly affected tens of millions of people. Macroeconomic indicators took a nose dive as political instability reached new heights. In the middle of such bad news, Pakistan saw installation of thousands of kilometers of new fiber optic cable, inauguration of a new high bandwidth PEACE submarine cable connecting Karachi with Africa and Europe, and millions of new broadband subscriptions. Broadband penetration among 140 million (59% of 236 million population) Pakistanis in  the 15-64 years age group reached almost 90%. This new digital infrastructure helped grow technology adoption in the country. 

Internet and Mobile Phone Banking Growth in 2021-22. Source: State Bank of Pakistan

Fintech: 

Mobile phone banking and internet banking grew by 141.1% to Rs. 11.9 trillion while Internet banking jumped 81.1% to reach Rs10.2 trillion.  E-commerce transactions also accelerated, witnessing similar trends as the volume grew by 107.4% to 45.5 million and the value by 74.9% to Rs106 billion, according to the State Bank of Pakistan.  

Pakistan Startup Funding in 2022. Source: i2i Investing

Fintech startups continued to draw investments in the midst of a slump in venture funding in Pakistan. Fintech took $10 million from a total of $13.5 million raised by tech startups in the fourth quarter of 2022, according to the data of Invest2Innovate (i2i), a startups consultancy firm. In Q3 of 2022, six out of the 14 deals were fintech startups, compared to two deals of e-commerce startups. Fintech startups raised $38 million which is 58% of total funding ($65 million) in Q3 2022, compared to e-commerce startups that raised 19% of total funding. The i2i data shows that in Q3 2022, fintech raised 37.1% higher than what it raised in Q2 2022 ($27.7 million). Similarly, in Q2 2022, the total investment of fintech was 63% higher compared to what it raised in Q1 2022 ($17 million).

E-Commerce in Pakistan. Source: State Bank of Pakistan

E-Commerce:

E-commerce continued to grow in the country. Transaction volume soared 107.4% to 45.5 million while the value of transactions jumped 75% to Rs. 106 billion over the prior year, according to the State Bank of Pakistan. 

Pakistan Among World's Top 10 Smartphone Markets. Source: NewZoo

PEACE Cable: 

Pakistan and East Africa Connecting Europe (PEACE) cable, a  96 TBPS (terabits per second), 15,000 km long submarine cable, went live in 2022. It brought to 10 the total number of submarine cables currently connecting or planned to connect Pakistan with the world: TransWorld1, Africa1 (2023), 2Africa (2023), AAE1, PEACE,  SeaMeWe3, SeaMeWe4, SeaMeWe5, SeaMeWe6 (2025) and IMEWE. PEACE cable has two landing stations in Pakistan: Karachi and Gwadar. SeaMeWe stands for Southeast Asia Middle East Western Europe, while IMEWE is India Middle East Western Europe and AAE1 Asia Africa Europe 1. 

Mobile Data Consumption Growth in Pakistan. Source: ProPakistan

Fiber Optic Cable: 

The first phase of a new high bandwidth long-haul fiber network has been completed jointly by One Network, the largest ICT and Intelligent Traffic and Electronic Tolling System operator in Pakistan, and Cybernet, a leading fiber broadband provider.  The joint venture has deployed 1,800 km of fiber network along motorways and road sections linking Karachi to Hyderabad (M-9 Motorway), Multan to Sukkur (M-5 Motorway), Abdul Hakeem to Lahore (M-3 Motorway), Swat Expressway (M-16), Lahore to Islamabad (M-2 Motorway) and separately from Lahore to Sialkot (M-11 Motorway), Gujranwala, Daska and Wazirabad, according to Business Recorder newspaper.

Mobile telecom service operator Jazz and Chinese equipment manufacturer Huawei have commercially deployed FDD (Frequency Division Duplexing) Massive MIMO (Multiple Input and Output) solution based on 5G technology on a large scale in Pakistan. Jazz and Huawei claim it represents a leap into the 4.9G domain to boost bandwidth. 

Pakistan Telecom Indicators November 2022. Source: PTA

 

Pakistan's RAAST P2P System Taking Off. Source: State Bank of Pakistan

Broadband Subscriptions:

Pakistan has 124 million broadband subscribers as of November, 2022, according to Pakistan Telecommunications Authority.  Broadband penetration among 140 million (59% of 236 million) Pakistanis in 15-64 years age bracket is 89%.  Over 20 million mobile phones were locally manufactured/assembled in the country in the first 11 months of the year. 

Bank Account Ownership in Pakistan. Source: Karandaaz

Financial Inclusion Doubled In Pakistan in 5 Years. Source: Karandaaz

Documenting Pakistan Economy:

Pakistan's unbanked population is huge, estimated at 100 million adults, mostly women. Its undocumented economy is among the world's largest,  estimated at 35.6% which represents approximately $542 billion at GDP PPP levels, according to World Economics. The nation's tax to GDP ratio (9.2%) and formal savings rates (12.72%) are among the lowest. The process of digitizing the economy could help reduce the undocumented economy and increase tax collection and formal savings and investment in more productive sectors such as export-oriented manufacturing and services. Higher investment in more productive sectors could lead to faster economic growth and larger export earnings. None of this can be achieved without some semblance of political stability. 

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  • Riaz Haq

    Public cloud services on the rise in Pakistan
    Cloud computing market in country expected to reach $1.5b this year

    https://tribune.com.pk/story/2406357/public-cloud-services-on-the-r...

    According to a report of IDC, public cloud spending in Asia-Pacific excluding Japan (APeJ) is expected to grow at a compound annual growth rate (CAGR) of 25.5% from 2019 to 2024, reaching $124.5 billion in 2024.

    Another report of Gartner suggests that the public cloud services market in the Asia-Pacific region will grow by 23.7% in 2021 and reach $124.6 billion, up from $100.8 billion in 2020.

    In Pakistan, the adoption of public cloud services is also on the rise. Allied Market Research, in its report, says the cloud computing market in Pakistan is expected to reach $1.5 billion by 2023, growing at a CAGR of 19.1% from 2017 to 2023.

    “These numbers highlight the increasing importance of public cloud for businesses in Asia and Pakistan, as they embrace digital transformation and seek to leverage the benefits of cloud computing to enhance their competitiveness and drive growth,” remarked Azam.

    Cloud computing provides organistions with the ability to rapidly scale resources up or down, as needed, allowing them to handle changes in demand more effectively.

    According to an IDC study, organisations that use cloud computing are able to handle 2.5 times more application workloads than those that rely on the traditional IT infrastructure.

    Talking about the security of public cloud, Azam cited a Forrester Research report which said that 80% of security breaches involving the public cloud infrastructure are caused by customer misconfiguration or mistakes.

    “This shows that while cloud providers have strong security measures in place, organisations also have a responsibility to ensure their data is secure in the cloud,” he added.

    Overall, the importance of public cloud services for businesses in Asia and Pakistan cannot be overstated, as it provides them with the ability to innovate, collaborate, and scale with ease, while reducing costs and improving security and reliability.

    “Public cloud offers a pay-as-you-go model and the ability to scale resources up or down, as needed, which makes it easier for organisations to handle fluctuating workloads without having to invest in additional hardware or infrastructure. In contrast, private cloud requires organisations to invest in and maintain their own infrastructure which can be costly. Private cloud offers more control over data and infrastructure, which can be beneficial for organisations with strict security requirements.”

  • Riaz Haq

    NADRA launches Nishan Pakistan platform, lets startups leverage digital identity stack | Biometric Update


    https://www.biometricupdate.com/202305/nadra-launches-nishan-pakist...

    The National Database and Registration Authority (NADRA) has launched the Beta version of Nishan Pakistan, a platform to enable small and medium sized businesses in the country make the most of its digital ID stack.

    NADRA Chairman Tariq Malik said in a tweet that Nishan Pakistan is a game-changer platform designed to empower commercial startups and young entrepreneurs with secure and contactless biometric verification through secure data sharing with NADRA.

    He said the platform, which offers a world of endless possibilities and a plethora of use cases for businesses including customer identification through biometrics, is the first of its kind online, secure and open digital identity authentication platform in the country.

    Malik added that the platform offers an API gateway and a cutting-edge sandbox that enables a smooth integration with other systems and will provide a set of services that will help businesses with “a seamless, consistent and connected experience,” and also contribute to ongoing efforts of making Pakistan a truly digital nation.

    The official said in another message that the novelty will set the stage for the kind of market-creating innovation that ignites “the economic engine of a country, creates jobs and augments profits that fund public services and promote change culture in the society.”

    Nishan Pakistan has been rolled out for user acceptance testing and NADRA is looking out for feedback to improve the functionality of the platform and also help in its plans of creating a strong digital ID system.

    Subscriptions to the platform are opened and interested businesses can submit applications and wait for the approval process to be completed in 10-15 days, according to a promotional video.

    In April, NADRA announced the market launch of the automated fingerprint identification system (AFIS)) it developed domestically.

  • Riaz Haq

    How the mobile phone is transforming Pakistan - Newspaper - DAWN.COM


    https://www.dawn.com/news/1448782

    How are we navigating our daily lives, connecting with our surroundings, equipped with the mobile phone?
    Faiza Shah Published December 2, 2018

    Mehreen Kashif from Larkana, for example, manages a business of hand-embroidered apparel and bed linen without leaving her home. It has been four years since she launched her work-from-home enterprise through a Facebook page and then contacting clients through WhatsApp.

    “Women are not allowed to leave home here,” she explains. Owning a mobile phone has been a game-changer, though, as she has been able to expand her business over only four years and that, too, countrywide. Most of her clients are from Punjab, where she also orders fabric from. She has it shipped from Al Karam textile mills in Faisalabad. She simply puts up new designs and items on her WhatsApp status and the orders from her phone contacts pour in. She estimates about 4,000 repeat customers but also claims that they are “unlimited” and “it is almost getting hard to keep up with the orders.”

    Mehreen caters to customised orders as well. She has 30 women working for her, and has provided two of them with mobile phones as, “it is easier to share pictures of the designs they work with.” Her effort is to seek out embroiderers with skill but also those who are truly in need of money. And this is a driving force behind managing her business; the ability to employ women who have talent but are house-bound under the dictates of rural traditions.

    “They just come to my house for work,” she says of her employees. “The phone has facilitated us living in such an area where women are not allowed to leave their houses. It has helped me because I also do not have permission to go out.”


    A similar story is echoed by Salma Ilyas, who runs a kitchen business in Karachi to provide home-cooked meals to “a young professional class”. Mother to four young ones, her husband owned a small business of selling paper. One fine day, the business got wrapped up as the owner of the building housing the paper shop decided to remove all businessmen from the building. With no backup plan, with no storage space for the bundles of paper already bought in wholesale, the Ilyases were in trouble.

    “One day, I just cooked achaar gosht and put up pictures on my Facebook wall,” narrates Salma. “People started liking the photos and asked how much for a plate. That sparked an idea to sell what I cook. That week I made almost as much as my husband would make every week in his paper business.”

    Things suddenly changed financially for the Ilyases as Salma dragged the family out of its quagmire. With some savings, she upgraded her cooking range, bought better utensils, and went full-time. Her husband now receives orders on WhatsApp and handles the food delivery component of the business. The paper from the old business was sold onwards to someone else. And as Salma puts it, her marriage and domestic harmony seems to be at an all-time high because of WhatsApp.

    What is interesting is how travel and restaurant deliveries — 31 percent and 24 percent consumers respectively purchasing within the category — are driving the growth for the evolving mobile industry in Pakistan.”

    As with the Ilyases, the mobile phone has brought together the service provider and client, almost eliminating the middleman entirely. Business cards used to be a thing of yesteryear, now it’s the WhatsApp number. The service provider, such as an electrician, a cook, or a car mechanic, gives their mobile number to clients along with a fair bit of reliability. As clients have a mobile number of the electrician or AC repairman, they can catch a hold of him pretty much anytime during working hours. In other words, phones have broadened opportunities for recreation and business alike.