Digital Pakistan: Bridging the Geographic Digital Divide in the Country

Like many other countries, Pakistan has a geographic digital divide. Residents of remote areas of the country have significantly lower access to the Internet than those in the urban centers. While the mobile internet usage in the urban areas has reached 65%, only 50% of those living in rural areas have access to it, according to a recent GSMA report titled "State of Mobile Internet Connectivity 2026". 

Digital Connectivity in Rural Pakistan


To bridge this rural-urban digital divide, Pakistan government is expanding telecom and high-speed internet services in remote and rural areas through the proposed National Connectivity Plan, satellite broadband integration, and multi-billion-rupee Universal Service Fund (USF) projects. Fiber optic cables and satellites will provide backhaul high-capacity communication link to solar-powered 4G/5G cell towers in rural communities. 

Solar power is being used to bridge the digital divide in the country by providing reliable off-grid electricity for remote telecom towers, internet hubs, and community learning centers. Cell tower infrastructure companies like Engro Enfrashare are using solar-powered setups for thousands of telecom towers across regions like Balochistan to maintain stable mobile and data signals. 

Pakistan Telecommunications Authority (PTA) has recommended licensing multiple low-earth orbit (LEO) satellite service providers, including Starlink, OneWeb, Shanghai Spacecom Satellite Technology (SSST) and Amazon's Project Kuiper, to deliver reliable broadband to isolated rural communities and motorways where laying conventional fiber is commercially unviable. 

At the same time, satellite service providers such as Kacific Broadband Satellites have partnered with local operations to bring high-speed connections—delivering up to 60 Mbps to rural schools across remote northern territories like Gilgit-Baltistan and Chitral. Leveraging 11 Ka-band spot beams on the Paksat MM1 satellite, this partnership will bridge the digital divide and support the country’s growing connectivity needs. With high-throughput capacity for over 20,000 sites, the collaboration will provide essential broadband access for communities, businesses, government agencies, ISPs, and telcos, enabling mobile backhaul and backup connectivity in remote regions.

The Universal Service Fund (USF), funded by a levy on mobile carriers, has expanded voice and broadband access to more than 16.2 million people. The projects covered over 9,400 underserved and unserved mauzas during the last five fiscal years.  The Fund has recently approved major new projects worth Rs 13 billion across 11 districts across the country. These initiatives encompass three fiber-optic cable projects covering 1,428 km (Sialkot, Narowal, Ziarat, and Quetta) and six broadband projects (Umerkot, Gujranwala, Kohat, Khuzdar, Muzaffargarh, Mansehra, and Mandi Bahauddin) aiming to connect over 5.5 million people. These cables are planned to be installed along motorways and highways going through small towns and villages. 

In addition to improving access in underserved areas, Pakistan government has also rolled out an ambitious National Fiberization Plan aimed at delivering high-speed broadband to 10 million households by 2029.  It's also targeting 80% fiberization of mobile towers to enhance network capacity and reliability. 

In FY2025-26, Pakistan's software houses, BPOs, export companies and independent freelancers together earned Pakistan US$4.6 billion in IT and IT-enabled services exports, up 20% from US$3.8 billion the year before. June, 2026 alone brought in US$416 million, nearly 23 percent higher than the same month a year earlier, according to government data. The government has set a target of $25 billion digital economy by 2030. 

It's all part of Pakistan's continuing journey to build a robust digital public infrastructure (DPI). It 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". 

Growing access to smartphones and Internet connectivity is already transforming the lives of women in rural Pakistan. They are acquiring knowledge, accessing healthcare and finding economic opportunities.  A 2023 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". 

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  • Riaz Haq

    Pakistan's household internet access rate stands at , while individual internet usage has surged to 57%nationwide. [1]
    Internet Access Breakdown
    • Household Access: Rose sharply from 34% (recorded in 2018–19) to 70% according to the Household Integrated Economic Survey (HIES) by the Pakistan Bureau of Statistics. [1]
    • Individual Users: Individual internet adoption climbed to 57%, representing roughly 117 to 118 million citizens. [1, 2, 3]
    • Regional Variations: Khyber Pakhtunkhwa recorded the highest household internet penetration at 77%, while Sindh registered the lowest at 67%. [1]
    • Mobile Connectivity: Over 96% of households own a mobile or smartphone, providing the primary gateway for digital access. [1, 2]
    • Gender Disparity: Smartphone and internet ownership exhibits a gap, with usage standing at 69% among men compared to 31% among women. [1]

  • Riaz Haq

    According to the GSMA State of Mobile Internet Connectivity 2026 Report, . [1]
    Usage Gap Comparison
    • India: Records the largest absolute mobile internet usage gap globally, with approximately 710 million people living within mobile broadband coverage but not using the internet. India features nearly 99% 4G population coverage.
    • Pakistan: Faces a usage gap of roughly 140 million people who are covered by mobile broadband networks yet remain unconnected. [1, 2]
    Rural vs. Urban Digital Divide
    • Pakistan: Shows a stark contrast between regions. Only 50% of adults in rural areas use mobile internet, compared to 65% in urban areas. While rural awareness of the internet is high (at 84%), handset barriers are severe—only 46% of rural adults own an internet-enabled smartphone/handset compared to 62% in cities. [1, 2]
    • India & South Asia Trends: Similar disparities affect rural and marginalized groups across the region, where women, rural residents, and those with less education account for the highest proportion of non-users. [1]
    Key Barriers to Adoption
    The GSMA highlights shared regional challenges restricting digital economic participation:
    • Affordability: High cost of internet-enabled handsets and data services.
    • Digital Literacy & Skills: A lack of literacy and basic reading/writing skills remains one of the primary deterrents for mobile users even when aware of the internet.
    • Quality and Relevance: Issues regarding connection quality, safety, security concerns, and the perceived relevance of online services. [1, 2, 3]
  • 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.