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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 the15-64 years age group reached almost 90%. This new digital infrastructure helped grow technology adoption in the country.
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| Internet and Mobile Phone Banking Growth in 2021-22. Source: State ... |
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.
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| 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).
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| 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.
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| 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.
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| 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.
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| Pakistan Telecom Indicators November 2022. Source: PTA |
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| 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.
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| Bank Account Ownership in Pakistan. Source: Karandaaz |
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| 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.
Related Links:
Pakistan hits 200 million telecom subscribers, with 150 million broadband users - Profit by Pakistan Today
https://profit.pakistantoday.com.pk/2025/06/20/pakistan-hits-200-mi...
To mark the milestone, mobile operators offer 2GB free data and 200 on-net minutes to all users, valid for 24 hours on June 20, 2025
Pakistan has reached a historic milestone in its digital growth, with the number of telecom subscribers surpassing 200 million, the Pakistan Telecommunication Authority (PTA) announced. This includes 150 million broadband subscribers and more than 2 million Fiber To The Home (FTTH) users.
The PTA described the achievement as a testament to the country’s accelerated digital progress and their ongoing commitment to inclusive connectivity. As part of the celebration, the PTA, in collaboration with mobile network operators such as Jazz, Telenor, Ufone, Zong, and SCO, is offering all mobile users a special promotion: 2GB of free data and 200 on-net minutes, valid for 24 hours on Friday, June 20, 2025. To avail of this offer, subscribers can dial *2200#.
The PTA also emphasized its efforts to promote digital inclusion, particularly for female students. Alongside telecom companies like PTCL, Transworld, Nayatel, Cybernet, and Wateen, PTA is deploying free Wi-Fi hotspots at selected universities recognized by the Higher Education Commission (HEC), with a special focus on women-only institutions. This initiative aims to improve access to online learning resources for students across the country.
Additionally, mobile phone manufacturers have donated 200 locally assembled smartphones, which will be distributed to female SIM card holders across Pakistan, Azad Jammu and Kashmir, and Gilgit-Baltistan via computerized balloting.
The number of telecom subscribers has now reached 200 million, with teledensity slightly decreasing from 81.4% in June 2023 to 81.21% in June 2025. However, broadband penetration has seen considerable growth, rising from 53.6% in June 2023 to 60.8% by June 2025.
During the event, IT and Telecom Minister Shaza Fatima Khawaja confirmed that Pakistan is moving forward with plans to launch 5G internet services, with work already underway.
Pakistan’s retail landscape has undergone a significant digital transformation, with nearly 90% of retail payments now processed through digital channels, according to the State Bank of Pakistan’s (SBP) latest Quarterly Payment Systems Review for Q3 FY25.
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Digital payments surge as mobile apps and Raast drive growth in third quarter
SBP reports 12% rise in retail transaction volumes and 22% growth in mobile-based payments
https://profit.pakistantoday.com.pk/2025/06/25/digital-payments-sur...
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The State Bank of Pakistan (SBP) has reported continued growth in the country’s digital payment landscape, with a 12% increase in retail transaction volumes and an 8% rise in value during the third quarter of FY25. According to SBP’s Quarterly Payment Systems Review, total retail transactions reached 2.4 billion, valued at PKR 164 trillion, with 89% conducted through digital channels.
Mobile apps, including banking apps and e-wallets, processed 1.7 billion transactions worth PKR 27 trillion—up 16% in volume and 22% in value. Mobile banking app users rose 7% to 22.6 million, while e-money and branchless wallet users increased to 5.3 million (up 12%) and 68.5 million (up 6%) respectively.
E-commerce transactions climbed 40% in volume to 213 million and 34% in value to PKR 258 billion, with digital wallets accounting for 94% of the total. In-store POS transactions reached 99 million, worth PKR 550 billion, processed by over 140,000 merchants. QR code payments also grew, with 21.7 million transactions totalling PKR 61 billion.
SBP’s own platforms, Raast and RTGS, played a key role. Raast processed 371 million transactions worth PKR 8.5 trillion this quarter, bringing cumulative volume since launch to 1.5 billion and value to PKR 34 trillion. RTGS handled PKR 347 trillion in large-value payments across 1.5 million transactions.
The central bank credited the growth to its digital finance strategy and collaborative efforts by banks, fintechs, and payment providers, reaffirming its commitment to financial inclusion and payment system efficiency.
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State Bank of Pakistan (SBP) has released its Quarterly Payment Systems Review for Q3 FY25,
providing summary on the payment systems, and presenting notable changes in the digital
payment landscape of the country.
https://www.sbp.org.pk/psd/pdf/PS-Review-Q3FY25.pdf
The federal government wants to bridge the digital divide. Federal Minister for Economic Affairs Ahad Cheema recently chaired a crucial meeting. He discussed the proposed National Connectivity Plan. Minister for IT & Telecom Shaza Fatima Khawaja and several senior officials also attended this session. Primarily, the meeting focused on expanding high-speed internet access. The government wants to connect villages, remote areas, and small towns. Consequently, this move will unlock massive new economic opportunities across the country.
Currently, slow and unreliable internet creates major hurdles for remote workers. Therefore, Federal Minister Ahad Cheema highlighted the government’s top priority. Authorities aim to facilitate freelancers, e-commerce entrepreneurs, and other digital professionals living in remote regions. The government will take all necessary measures to ensure affordable, high-speed internet services. As a result, every citizen can fully participate in the growing digital economy.
Furthermore, the session highlighted the critical importance of 5G infrastructure. Next-generation fiber-to-the-home (FTTH) networks will also drive national economic growth. Ultimately, these crucial upgrades will create jobs and foster nationwide digital inclusion.
Pakistan is already experiencing strong momentum in digital development. Officials noted steady growth in FTTH subscriptions, which currently stand at 2.8 million. Moreover, the country boasts a robust fiber footprint of 234,000 kilometers. The current infrastructure includes 5.1 million house passes and six operational submarine cables.
To build upon this solid foundation, the government outlined highly ambitious national targets. The plan seeks to expand the infrastructure to 10 million house passes. Additionally, the government aims to raise average fixed broadband download speeds to 85 Mbps. Authorities also plan to increase tower fiberization to 60 percent. Consequently, these specific efforts aim to secure the country a spot among the world’s top 50 countries for broadband performance.
The meeting placed a massive emphasis on digital affordability. Participants actively considered targeted tax relief for internet users living in remote areas. This key decision will significantly expand digital participation.
Additionally, officials discussed several strategic reforms. The government plans to abolish right-of-way fees. Authorities will also launch a single-window approval portal and introduce district-level licensing. Furthermore, the plan makes fixed broadband connectivity mandatory across all public institutions, schools, and health facilities.
To ensure swift execution, the government will finalize the National Connectivity Plan expeditiously through comprehensive stakeholder consultation. Cheema stressed the need for a highly structured and sequenced approach. The government will prioritize essential regulatory reforms and enforce clear operator obligations. Moreover, officials will link financial support directly to verified performance milestones. This strategy will accelerate nationwide fiber deployment. At the same time, it will successfully safeguard public resources and ensure long-term commercial viability.
New Connectivity Plan Proposed to Boost Internet in Remote Areas
https://www.techjuice.pk/new-connectivity-plan-proposed-to-boost-in...
The federal government wants to bridge the digital divide. Federal Minister for Economic Affairs Ahad Cheema recently chaired a crucial meeting. He discussed the proposed National Connectivity Plan. Minister for IT & Telecom Shaza Fatima Khawaja and several senior officials also attended this session. Primarily, the meeting focused on expanding high-speed internet access. The government wants to connect villages, remote areas, and small towns. Consequently, this move will unlock massive new economic opportunities across the country.
A Connectivity Plan to Empower Freelancers & Digital Professionals
Currently, slow and unreliable internet creates major hurdles for remote workers. Therefore, Federal Minister Ahad Cheema highlighted the government’s top priority. Authorities aim to facilitate freelancers, e-commerce entrepreneurs, and other digital professionals living in remote regions. The government will take all necessary measures to ensure affordable, high-speed internet services. As a result, every citizen can fully participate in the growing digital economy.
Furthermore, the session highlighted the critical importance of 5G infrastructure. Next-generation fiber-to-the-home (FTTH) networks will also drive national economic growth. Ultimately, these crucial upgrades will create jobs and foster nationwide digital inclusion.
Ambitious Infrastructure Targets
Pakistan is already experiencing strong momentum in digital development. Officials noted steady growth in FTTH subscriptions, which currently stand at 2.8 million. Moreover, the country boasts a robust fiber footprint of 234,000 kilometers. The current infrastructure includes 5.1 million house passes and six operational submarine cables.
To build upon this solid foundation, the government outlined highly ambitious national targets. The plan seeks to expand the infrastructure to 10 million house passes. Additionally, the government aims to raise average fixed broadband download speeds to 85 Mbps. Authorities also plan to increase tower fiberization to 60 percent. Consequently, these specific efforts aim to secure the country a spot among the world’s top 50 countries for broadband performance.
Strategic Reforms & Tax Relief
The meeting placed a massive emphasis on digital affordability. Participants actively considered targeted tax relief for internet users living in remote areas. This key decision will significantly expand digital participation.
Additionally, officials discussed several strategic reforms. The government plans to abolish right-of-way fees. Authorities will also launch a single-window approval portal and introduce district-level licensing. Furthermore, the plan makes fixed broadband connectivity mandatory across all public institutions, schools, and health facilities.
To ensure swift execution, the government will finalize the National Connectivity Plan expeditiously through comprehensive stakeholder consultation. Cheema stressed the need for a highly structured and sequenced approach. The government will prioritize essential regulatory reforms and enforce clear operator obligations. Moreover, officials will link financial support directly to verified performance milestones. This strategy will accelerate nationwide fiber deployment. At the same time, it will successfully safeguard public resources and ensure long-term commercial viability.
USF Connects 16.2m People, Deploys 10,400km OFC in Five Years.
The projects expanded broadband access across thousands of underserved areas. Fibre deployment also connected 947 previously unserved
https://www.techjuice.pk/usf-connects-16-2m-people-deploys-10400km-...
The Universal Service Fund (USF) 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 figures were shared by Minister for Information Technology and Telecommunication Shaza Fatima Khawaja. She provided the details in a written reply to the National Assembly.
During FY2022-26, USF projects delivered voice and broadband data services across more than 9,400 mauzas. The programme also helped bring broadband to areas where telecom operators lacked a strong business case.
USF also expanded coverage along more than 1,000 kilometres of unserved roads. These included sections of national highways and motorways. The projects also covered eight tourist destinations and around 50 kilometres of access routes.
The fund deployed more than 10,400 kilometres of optic fibre cable (OFC) during the same five-year period. This work connected 947 unserved tehsil headquarters, union councils and towns.
Since its launch, USF has reached more than 38.4 million people across over 22,100 mauzas. It has also covered more than 2,500 kilometres of previously unserved road segments.
The fund has connected eight tourist destinations and about 50 kilometres of access routes. Its total OFC deployment has also crossed 18,300 kilometres since inception.
USF was established under Section 33(A)(1) of the Pakistan Telecommunication (Re-organization) Act, 1996. Its main goal is to extend telecom services to rural, remote and underserved communities.
The programme initially focused on voice and basic data services through 2G networks. It later expanded to high-speed broadband through 3G and 4G networks.
The government said better connectivity is also supporting education, healthcare and emergency services. It is helping improve financial inclusion, e-governance and access to economic opportunities.
The ministry said USF remains important in areas where commercial telecom deployment is difficult. It will continue targeting unserved and underserved communities through broadband and fibre projects.
AI cooperation with China brings hope to Pakistan's small farmers
https://www.bignewsnetwork.com/news/279275714/ai-cooperation-with-c...
For many small farmers in Pakistan's Punjab province, the country's most populous province, farming has always felt like a roll of the dice against the whims of the weather. But local farmers may soon see their fortunes change.
Syed Muhammad Ashiq Hussain Shah, Punjab's agriculture minister, is attending the 2026 China International Big Data Industry Expo, which runs through Sunday, in Guiyang, capital of southwest China's Guizhou Province. He said his delegation has a clear mission: to find Chinese partners who can help bring AI-powered farming tools to millions of smallholders back home.
According to the Pakistani official, many small farmers in Punjab province lack access to reliable, timely information. Meanwhile, climate change is making weather patterns increasingly erratic, with sudden downpours, prolonged droughts and scorching heat waves adding new risks to agricultural production
Punjab's agricultural authorities are now developing an AI-powered digital monitoring network designed to deliver weather forecasts, crop monitoring and real-time data on soil, water and pest control directly to farmers.
"We want to use AI to monitor the weather, soil and water, and to digitally track crops as well," Shah said. "We also want to use AI for pest control, so that a farmer can simply send a picture of a plant and get help identifying the problem. "
"If farmers can receive this information through a digital platform, they can make better decisions and reduce losses. That is why we see AI as an important tool for improving agricultural productivity and supporting farmers in Punjab," he said.
"That is exactly why we are here -- to find partners and learn from China's experience," he added.
In fact, China and Pakistan, including Punjab, have already shared a solid foundation in agricultural cooperation. Shah said Punjab signed at least six memorandums of understanding following previous visits to China and has been actively following through on them.
Chinese companies have also played a significant role in Punjab's high-tech farm mechanization program. Shah estimated that about 90 percent of the machinery acquired under the program -- including harvesters and tractors -- came from China. Now, this partnership is evolving beyond hardware to include smart technologies and intelligence.
Ali Mustafa Dar, adviser to the chief minister of Punjab on artificial intelligence and special initiatives, observed that China does not treat AI as something separate from economic development, but integrates it across manufacturing, logistics, cities, agriculture, transport and public services.
"China thinks long term. It builds the infrastructure. It experiments and learns. And when something works, it has the capacity to take it to extraordinary scale," he said.
As China's first national comprehensive big data pilot zone, Guizhou offers precisely the kind of experience Punjab is looking for. Dar said Guizhou is particularly interesting because it demonstrates that AI begins with strong data foundations.
Guizhou is a key hub for China's national "East Data, West Computing" project. This national strategy operates similarly to a power grid, shifting the heavy data processing demands of China's economically bustling eastern coast to resource-rich western regions. Crucially, the project utilizes the western region's abundant green energy such as wind and hydropower, making it a major milestone in green technology and carbon reduction.
By late July 2026, Guizhou housed 50 key data centers, with total computing capacity reaching 176.57 EFLOPS. Nearly 98.4 percent of this capacity was dedicated specifically to AI-related computing.
Dar said he is keen to understand how Guizhou has built its data ecosystem -- from infrastructure, data centers and standards to governance, industry and the applications built on top.
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