Pakistan's Digital Public Infrastructure (DPI) Initiative Transforming Lives

by Riaz Haq

Jul 19, 2024

Pakistan's journey to build a digital public infrastructure (DPI) began in March 2000 with the establishment of NADRA, the National Database and Registration Authority. The Gates Foundation defines DPI as follows: "DPI is a digital network that enables countries to safely and efficiently deliver economic opportunities and social services to all residents. DPI can be compared to roads, which form a physical network that connects people and provides access to a huge range of goods and services...... strong DPI has three foundational systems—identity, payments, and data exchange—that together can make life easier in important ways". 

Digital Public Infrastructure. Source: World Economic Forum

Transformational Impact:

An article recently published on the World Economic Forum website sheds light on how Pakistan's digital public infrastructure is transforming lives in rural Pakistan. Here's how it begins: 

"On a scorching day with temperatures soaring to 42 degrees, Manzoora, a mother from the flood-stricken district of Shaheed Benazirabad, rural Sindh, Pakistan, made a significant leap: she withdrew cash from her own bank account for the very first time. This milestone was made possible through a mobile cash transfer programme initiated by the Sindh government, which partnered with digital service providers to empower citizens like Manzoora. This is just one example of how DPI is changing the lives of millions of Pakistanis". 

An earlier UNDP report  titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood has also described 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 training, 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". 

Digital Identity: 

NADRA launched Computerized National Identity Card (CNIC) the same year it was established. It uses biometric data and personal information to confirm the identity of the cardholder as a citizen of Pakistan. The CNIC card is used across the country for voting in elections, opening bank accounts, issuing passports, getting driver's licenses, registering marriages and divorces, completing real estate transactions, participating in social safety net programs like Benazir Income Support, obtaining mobile phone numbers/sims, purchasing tickets for airlines and railways, etc etc. 

The introduction of CNIC was a "foundational change, positioning Pakistan among a select group of nations equipped to manage comprehensive digital identities for over 240 million citizens", according to the World Economic Forum. Within four years of launching the Benazir Income Support Program (BISP) – a social protection initiative to alleviate poverty – CNIC issuance to adults increased by 72%. 

 

Pakistan Instant Payment System. Source: State Bank of Pakistan



Payments:

Digital identity enables payments from the government to citizens as well as financial transactions among individuals, businesses and government entities. The introduction of RAAST, an instant low-cost payment system launched in 2021 by the State Bank of Pakistan, has spurred digital payments in the country.  It seamlessly and securely connects government entities, a variety of banks, including microfinance banks (MFBs),  electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs). 

QR Codes: 

This year, the State Bank of Pakistan has launched P2M (Person to Merchant) services. These allow people with electronic wallets in their mobile phones to pay for goods and services using merchants' QR codes. “The P2M service will enable payment acceptance by businesses using quick response (QR) codes, Raast Alias, IBAN and request to pay (RTP),” the Central Bank said in an announcement. 

"All REs (regulated entities) shall enable…capabilities for processing P2M transactions via their delivery channels including mobile apps, internet banking portals and USSD channels (where applicable) by March 01, 2024." The central bank asked Raast merchant service providers (MSPs) to ensure that customers are not charged any fee on their purchases, by merchants or third parties.

"MSPs may…charge a reasonable fee from merchants for the services provided; however, they are encouraged to initially waive off such charges to promote merchant adoption."

RAAST Uptake:

Raast, the State Bank of Pakistan's Instant Payment System, is playing an important role in facilitating free, convenient and secure real-time transactions across the country, according to a report published by the State Bank of Pakistan. During Q3 of FY24,  Raast processed 140 million transactions totaling Rs. 3,437 billion.

Digital transactions took center stage in Pakistan's financial landscape during Q3 FY 2023-24, capturing a commanding 83% of 844 million total retail payments processed by Banks and Electronic Money Institutions (EMIs), while the remaining 17% were Over-the-Counter (OTC) transactions at banks’ branches, reports Mettis Global. 

Pakistan National Socioeconomic Registry. Source: Maintains

National Socioeconomic Registry:

The National Socio-economic Registry has been created . It will be regularly updated to keep it current and deliver services to the Pakistanis most in need. The effort started in earnest in 2020 to hand out Rs. 12,000 per family to 3 million most affected by the COVID19 lockdown. Here's how a Pakistani government website describes the digital registry architecture:

"The Cognitive API architecture for Ehsaas’ National Socio-Economic Registry 2021 is one of the six main pillars of ‘One Window Ehsaas’. With the survey, which is building the registry currently 90.5% complete nationwide, Ehsaas is firming up its plans to open data sharing and data access services for all executing agencies under the Poverty Alleviation and Social Safety Division (PASSD). Data sharing will be done through the Cognitive API Architecture approach. The deployment of Ehsaas API architecture for data sharing will allow executing agencies to access data from the unified registry in real-time to validate beneficiary information. This will empower them to ascertain eligibility of potential beneficiaries". 

DPI Future Plans:

In future, Pakistan is set to launch several ambitious DPI initiatives, including expanding the RAAST payment system, implementing a nationwide digital health records system, and launching a blockchain-based land registry. These projects promise to drive efficiency and transparency across multiple sectors, positioning Pakistan as a pioneer in the global digital landscape, according to a report by the World Economic Forum. 

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  • Riaz Haq

    Pakistan to fiberise 10m homes
    Sets 2029 target; fragmented networks, low FTTH threaten broadband ambitions

    https://tribune.com.pk/story/2580911/pakistan-to-fiberise-10m-homes




    KARACHI:
    Pakistan, long criticised for inadequate public service delivery, now sees a rare opportunity to leap into modern governance through technology. But its race towards a digitally enabled future depends on whether it can overcome deep connectivity gaps, high infrastructure costs, and sluggish fibre-to-the-home penetration, as the government rolls out an ambitious National Fiberisation Plan aimed at delivering high-speed broadband to 10 million households by 2029.
    While the initiative promises 100 Mbps fixed internet for every user and aims to elevate the country into the top 50 global speed rankings, experts warn that fragmented networks, limited fibre density, spectrum inefficiencies, and cybersecurity vulnerabilities could stall progress unless policy, investment, and execution align at scale.
    The country is also targeting 80% fiberisation of mobile towers to enhance network capacity and reliability, and to improve Pakistan's standing in the top 50 countries on the Ookla global speed rankings.
    The initiative is being led by the Ministry of Information Technology and Telecommunication (MoITT) in collaboration with the World Bank, as part of the Digital Economy Enhancement Project (DEEP). The main objective of the programme is to enhance the government's capacity to deliver digitally enabled public services for citizens and businesses.


    To achieve its targets, the ministry is currently seeking to hire a consultancy firm to develop a roadmap for attracting investment within the existing policy framework.
    The plan will also explore how Administrative Incentive Pricing (AIP) can be used as a complementary policy tool to promote efficient spectrum use and incentivise fibre deployment for backhaul and middle-mile connectivity, particularly to support 4G densification and 5G readiness. It will also clarify the complementary roles of fibre (long-haul, middle-mile, and deep access) and spectrum (last-mile wireless), ensuring that AIP discourages spectrum hoarding while encouraging sustainable, long-term investment in fibre-based infrastructure.


    Syed Muhammad Taha Owais, a fibre-optic infrastructure specialist, said demand for high-speed internet is rising sharply in urban areas for both commercial and domestic use, which could boost business productivity and output.
    "Pakistan ranks among the lowest globally for internet speeds due to obsolete infrastructure and the slow adoption of new technologies, particularly FTTH (fibre-to-the-home)," he said. All stakeholders, including the government and the private sector, should fast-track fibre deployment nationwide to improve connectivity and support the digitisation of business and governance systems.
    Owais, a senior official at Optix Pakistan, underscored the importance of high-speed internet, adding that the deployment of fibre optic in commercial areas and posh localities has increased the uptake of internet and increased the performance of the businesses.
    At present, Pakistan has over 211,000 kilometres of deployed optical fibre, including 75,967 km of long-haul and 135,506 km of metro fibre.
    "For a technopreneur, fibre is not infrastructure; it is oxygen and digital power," he said. This fiberisation plan is Pakistan's launchpad. Every startup, every smart city, every digital service depends on it.

    Sep 1

  • Riaz Haq

    PTA Introduces Facial Verification for SIM Cards to Avoid Frauds

    PTA Introduces Facial Verification for SIM Cards in Major Fraud Crackdown.
    Facial verification will add another layer of security for new and existing SIM users. PTA is also tightening controls on SIM sellers and duplicate SIM issuance.
    The Pakistan Telecommunication Authority (PTA) is launching a fresh crackdown on fraudulent telecom activities. To achieve this, the regulator is introducing facial verification for all current subscribers and those buying new SIM cards. This new system serves as an additional layer of biometric verification. Furthermore, it aims to enhance subscriber identification and authentication. Consequently, PTA expects this measure to significantly reduce the misuse of mobile connections.
     

    Moreover, PTA plans to implement a centralized blacklisting system for SIM sale channels. This system will enable the regulator to take stricter action against retailers and outlets involved in irregularities. In addition, the authority is considering the rationalization of these sale channels. This move will help PTA exercise better control over the network selling and activating mobile connections. Meanwhile, the regulator is also strengthening the process for issuing duplicate SIMs. Therefore, authorities can prevent unauthorized issuance and illegal use of mobile connections.

    These planned measures follow a continued campaign against fraudulent telecom activities. Previously, during the period of July 2025 to June 2026, PTA took significant actions. For instance, the regulator blocked 768 mobile numbers and 707 IMEIs. Additionally, authorities blacklisted 11 CNICs linked to fraudulent activities. During this same timeframe, the PTA issued official warnings to 2,497 subscribers.

    Ultimately, these latest enforcement actions, including facial verification for SIM cards, indicate a strategic shift. PTA is now tightening controls directly at the SIM issuance and sales stage. As a result, PTA hopes to prevent the misuse of mobile connections for illegal activities. Simultaneously, this shift will strengthen the overall subscriber verification mechanism.

    Sep 6

  • Riaz Haq

    EBANX advances emerging market infrastructure with Pakistan expansion in motion and native Apple Pay decryption
    By PR Newswire

    https://macaubusiness.com/ebanx-advances-emerging-market-infrastruc...


    Mobile-first and a double-digit growth opportunity in Pakistan

    Following the addition of Thailand, Indonesia, Malaysia, Vietnam, and Türkiye to its footprint in 2026, EBANX is preparing its payment operations in Pakistan for the next semester. The first alternative payment methods (APMs) to be offered are the local wallets JazzCash and Easypaisa, each reporting more than 50 million users. Next will be Raast, Pakistan’s rapidly growing national instant-payment rail. Data from the State Bank of Pakistan shows that Raast transaction volume nearly doubled in a year, going from 371.2 million in Q3 FY25 to 742.1 million in Q3 FY26.

    EBANX selected the country as its next frontier due to strong merchant demand and structural market complexity. According to World Data Lab (WDL) data analyzed by EBANX, Pakistan’s e-commerce spending is projected to grow at an average rate of 22% annually (2026-2030).

    With this high CAGR, the country is on track to more than triple its online market size over the decade. Pakistani Gen Z (ages 15–30 in 2026), especially, is experiencing a massive digital boom. Their spending on Video Gaming, Streaming, and Social Media is projected to grow at 17% annually through 2036—but credit card ownership among this cohort is below 10%.

    “Pakistan is a classic mobile-first market where smartphone ownership runs 20 to 40 percentage points ahead of card ownership. This makes local account-based payment methods, bank transfers, and digital wallets the key to winning market share,” said Eduardo de Abreu, CPO of EBANX and regional CEO of EBANX Singapore. “This payment fragmentation is challenging for global businesses, but bridging local payment infrastructure with global merchant needs is precisely what we have specialized in for over a decade.”

    Since its founding in Brazil in 2012, out of the necessity of global brands to connect with consumers and businesses through the Brazilian bank slip Boleto, EBANX has gone global, offering 400+ rails, 200+ payment methods, and processing over 4 million transactions per day.

    Apple Pay: EBANX decrypts in-house, so merchants don’t have to

    Starting in September, EBANX is rolling out a new operating model for Apple Pay that shifts the entire token decryption layer in-house. Under this setup, EBANX receives and decrypts encrypted Apple Pay tokens directly, managing certificates, security keys, and end-to-end PCI DSS compliance within its own infrastructure rather than requiring merchants to handle decryption.

    “The result is less burden for merchants and faster, safer, more seamless transaction flows, with EBANX owning the full end-to-end cardholder journey inside our acquiring stack,” explained Abreu.

    Apple Pay is a tokenized digital wallet that uses a debit or credit card as the underlying payment credential. With this new offering, EBANX—the only PSP with local acquiring across all 11 Latin American and Caribbean markets where Apple Pay operates—simplifies merchants’ operations while maintaining full end-to-end PCI DSS compliance within its acquiring infrastructure.

    Early production data underscores the model’s performance impact: tokenized wallet processing delivered an 11-percentage-point uplift in approval rates compared to non-tokenized card transactions, reaching 94.4%. Average Order Value (AOV) ran 23.5% higher than standard card purchases, reflecting strong alignment with high-intent digital consumers.

    “We have already built a successful partnership with Apple Pay in Brazil. Now, we are taking the most sophisticated version of that architecture across Latin America, from Guatemala to Argentina, for both one-time and recurring transactions,” said Del Valle.

    Sep 23