The Hovering Digital Divide In Pakistan: UNDP Report

Pakistan has been confronting obstacles on its digital transformation journey for many years. It includes fluctuations in the economy, inefficiencies in governance, and differences in socioeconomic status. According to the UNDP’s Nation Human Development Report 2024 on Digital Transformation, Pakistan is ranked 164th out of 193 countries on the Human Development Index (HDI). For all those unaware, there are three HDI dimensions—standard of living, health, and education at the provincial and district levels.

Pakistan-controlled Kashmir has the highest HDI of 0.781 among provinces and federally managed areas since 2017. The next highest HDI is 0.762 for Punjab, 0.650 for Khyber Pakhtunkhwa, and 0.645 for Sindh. The HDI of Gilgit-Baltistan value stands at 0.631. It clearly shows that Pakistan is grappling with the digital divide. According to the report, Sindh and Gilgit-Baltistan are categorized as medium human development areas, whereas Kashmir and Punjab are classified as having high-medium human development. On the other hand, Balochistan’s HDI score of 0.444 places it in the poor human development category.

Pakistan Ranks 164th Out of 193 Nations In HDI Index 2023-24

There are huge differences in human development within provinces and regions. With the fewest differences in HDI amongst provinces, Punjab is the most developed. Punjab’s districts are categorized as high, high-medium, or medium, with Rajanpur being the sole exception, where low-medium human development still exists. The majority of the districts of Pakistan’s least developed province, Balochistan, fall within the low-medium, low, and extremely low development classifications.

On the Human Development Index (HDI), Quetta and Gwadar districts are ranked as medium; nevertheless, Gwadar’s HDI rose 23 spots from 2017 to 2018. Pakistan is ranked 45th out of 52 nations in the World Internet Development Index (2023). It has a poor ranking on global digital indexes. Pakistan is still in the early stages of the digital transformation process. However, it shows a strong policy commitment to achieve fair digital transformation. The present vulnerabilities, inequities, and deprivations will increase if governance and regulation are not improved.

Digital transformation is examined in the National Human Development Report (NHDR) 2023–2024 as a critical tool for improving Pakistan’s socioeconomic structure. Pakistan’s economic development opportunities are limited due to the increased global energy and commodity prices, restricted credit availability, and political upheavals. In July 2023, a lifeline was supplied by the $3 billion standby agreement from the International Monetary Fund. However, the economic prognosis is still bleak, with GDP growth predicted to be 2.5% according to IMF projections and 1.8% according to World Bank estimates.

The amount of debt in Pakistan is still a major apprehension. It has ballooned by 26% to $260 billion, placing pressure on the country’s capacity to maintain fiscal sustainability. Pakistan’s government is clouded by allegations of corruption and problems with the rule of law, which diminish the effectiveness of the government in the nation. The differences in labor force participation rates between men and women are very noticeable, with women’s rates being just 24.5 percent and men’s rates being 80.7 percent. These problems have been worsened by limited access to digital services and the Internet.