Pakistan’s digital economy is on a steady march toward transformation, thanks to a tech-savvy youth population, increasing smartphone penetration, and the meteoric rise of freelancing and e-commerce.
With over 140 million internet users—most of them under 30—Pakistan has become a global leader in digital freelancing, now ranked fourth in the world. This digitally native population, combined with 85 percent mobile connectivity, is reshaping how the country works, shops, and does business.
E-commerce alone is expanding at a pace of 25–30 percent annually. Small and medium enterprises are increasingly tapping into this growth, connecting with hundreds of thousands of consumers through digital platforms. Meanwhile, fintech innovation, powered by widespread smartphone use, has helped digital payment volumes surge into the trillions of rupees.
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Pakistan’s digital services sector, particularly in freelancing, digital banking, and IT exports, is increasingly being seen as the country’s economic engine. With supportive government policies and better infrastructure, experts believe the sector could contribute US$150 billion to the economy by 2035.
However, challenges remain. Connectivity gaps in rural areas, limited fibre-optic coverage, and underinvestment in cybersecurity and R&D continue to hinder growth. Digital gender gaps are also prominent, with female participation lagging significantly.
Despite these hurdles, the momentum is clear. With strategic reforms and greater investment, Pakistan’s digital economy could be poised to drive the country into the world’s top 25 economies within the next decade.