Punjab to Launch $249m Digital Transformation Drive with World Bank Support

The World Bank has moved forward with appraisal and negotiations for the “Connected Punjab” programme, a $249 million digital transformation initiative aimed at expanding broadband connectivity, improving digital public services, and accelerating adoption of cashless payments across Punjab.

According to the Program Information Document (PID) prepared for the appraisal stage on May 21, 2026, the World Bank will provide $70 million financing for the programme, including $68 million through Program-for-Results (PforR) financing and $2 million through an Investment Project Financing (IPF) component for technical assistance. The Government of Punjab will contribute $179 million from provincial resources.

Punjab Resource Management & Policy Unit, Punjab Revenue Authority, and Punjab Information Technology Board will implement the programme, and the World Bank Board of Directors will consider it for approval on June 26, 2026.

The project forms part of Punjab’s broader Governance and Digital Economy & AI pillar under the Punjab Growth Strategy 2026-31.  It aligns with Pakistan’s Digital Pakistan vision and the World Bank Group Digital Strategy 2025.

Punjab to Launch $249m Digital Transformation Drive with World Bank Support

The World Bank noted that despite progress in mobile broadband penetration, Pakistan continues to face serious structural bottlenecks in high-speed internet infrastructure. Fixed broadband remains underdeveloped, with only 2.6 million fiber-to-the-home (FTTH) connections nationwide, around half of which are located in Punjab. In addition, only 17.9 percent of the country’s approximately 58,000 mobile towers are connected through fiber networks, constraining quality and reliability of digital services.

Under the programme’s first Results Area, Punjab plans to facilitate private investment in fixed broadband infrastructure by streamlining Right-of-Way (RoW) approvals and partially reimbursing eligible deployment costs in underserved urban areas. A digital RoW approval platform integrated with PITB’s e-Biz portal and OneMap geospatial platform will be introduced to reduce administrative delays and standardize approvals.

The programme also seeks to support AI-enabled digital service delivery through shared computing infrastructure, including GPU-enabled compute-as-a-service facilities accessible to government agencies, startups, academia, and researchers. Rather than investing in expensive foundational artificial intelligence models, Punjab intends to focus on localized AI applications tailored to public service delivery and administrative workflows.

The second Results Area will support deployment of AI-based citizen services, expansion of open-data systems, data governance frameworks, cybersecurity protocols, and provincial strategies for personal data protection.

Under the third Results Area, the programme aims to promote a cashless economy through introduction of digital invoicing systems, integration of digital point-of-sale platforms, and expansion of electronic payment systems linked to compliance and taxation frameworks.

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The World Bank observed that widespread reliance on cash transactions continues to limit transparency, transaction visibility, and formalization in Punjab’s economy. It stated that digital payment ecosystems linked with invoicing and compliance systems could improve documentation, support fintech innovation, and strengthen provincial tax administration.

The PID stated that it is developing the programme under a “One World Bank Group” approach in collaboration with the International Finance Corporation (IFC) to help enable private capital investment in broadband infrastructure.

The Bank assessed overall environmental and social risks associated with the programme as “moderate”. Identified concerns include digital exclusion risks for low-income communities, resistance from businesses toward digital tax compliance measures, cybersecurity vulnerabilities, privacy concerns arising from centralized citizen data systems, and environmental risks linked to e-waste generation and energy-intensive computing infrastructure.

Punjab’s digitalization strategy will support broader economic growth, improve public service delivery, strengthen financial inclusion, and encourage the formalization of economic activity through increased adoption of digital technologies and cashless transactions.