Pakistan’s Digital Lag and Climate Threat Could Trigger Economic Collapse: ADB
The Asian Development Bank (ADB) has raised serious concerns about Pakistan’s slow pace in digital transformation and its vulnerability to climate change. These are the two key factors that could potentially push the country toward economic collapse if not urgently addressed. In its latest “Harnessing Digital Transformation for Good: Asian Development Policy Report,” the ADB emphasized the need for Pakistan to invest in digital infrastructure, digital skills, and literacy, while improving affordability. The report recommends cost-effective strategies like spectrum and infrastructure sharing, cloud-based solutions, and the adoption of emerging technologies such as low-earth orbit satellites and 5G Fixed Wireless Access to improve last-mile communications.
Pakistan and Fiji have already introduced subsidies and fiscal incentives to expand connectivity in underserved regions. However, large gaps remain. The ADB notes that despite network availability, over 50% of Pakistan’s population is not subscribed to mobile internet services due to affordability and digital literacy barriers.
To close these gaps, economies including Pakistan, India, the PRC, Korea, Thailand, and Singapore are rolling out universal connectivity policies and skill development programs focused on low-income and marginalized groups, including older adults and less-educated individuals.
The ADB also warns of devastating climate-related economic risks. Citing a “high emissions” scenario, the report predicts a 16.9% GDP loss across developing Asia by 2070, with Pakistan facing a staggering 21.1% decline. Other highly affected countries include Bangladesh (–30.5%), Vietnam (–30.2%), Indonesia (–26.8%), and India (–24.7%).
Without urgent reforms in both the digital and climate resilience sectors, Pakistan may face deep structural economic damage in the decades ahead.
Also read:
MoITT Admits Skipping PSQCA Consultation in $77.7M Digital Project
