Islamabad is poised to become Pakistan’s digital showroom. At least, that’s what Federal Minister for IT and Telecommunication, Shaza Fatima Khawaja, announced at a media briefing. Plans are underway to blanket the capital with fibre optics, free Wi-Fi, and connected transport. Of course, for policymakers, these projects weave an image of progress. But beyond the federal capital, Pakistan’s digital landscape tells a different story: one of stark disparity, regulatory paralysis, and missed economic potential.
Roughly 111 million Pakistanis were online at the start of 2024. That means a staggering 131.8 million people, or 54.3% of the population, remained disconnected, with Pakistan’s internet penetration among the lowest in South Asia. In rural areas, the problem goes beyond slow speeds; entire regions lack infrastructure. For many households, even basic mobile service consumes a significant share of income, potentially as much as a fifth of average annual income for the poorest 20%, locking them out of education, healthcare, and economic opportunity.
Then consider education. During the pandemic, millions of students fell behind because they had no internet or devices. Over 10,000 low-cost private schools shut permanently. The healthcare system struggles to digitise patient records because slow internet speeds and unreliable networks cripple digital systems, leading to critical delays in patients receiving test reports. Meanwhile, freelancers and entrepreneurs, who could fuel the digital economy, face unreliable 4G and even 3 G services that threaten deadlines, client retention, and revenue, with some profiles being deactivated on various platforms.
Even Pakistan’s high-profile 5G ambitions have stalled. The auction originally slated for mid-2025 has been delayed by at least four months. The key reason being regulatory gridlock over the proposed Telenor-PTCL merger, which remains trapped in a prolonged Competition Commission of Pakistan (CCP) review. The technical groundwork exists, but policy bottlenecks and bureaucratic inertia keep progress hostage.
The country lacks a unified data governance policy, leaving both citizens and investors wary. Funds for digital projects stall in tedious approval processes, often wiped out by frequent leadership turnover. Regulatory agencies, like the PTA, claim high complaint-resolution rates (96% over four years), but users’ lived experience tells a different story: frequent outages, slow speeds, and service failures remain chronic, with the PTA itself admitting services are “worsening” in 2025.
Islamabad’s smart-city projects may indeed deliver improvements for the capital. But they risk becoming Potemkin villages-impressive façades masking nationwide digital neglect. No amount of urban fibre cables will solve Pakistan’s digital crisis if half the population remains offline.
Going beyond feel-good headlines, digital progress demands shifting focus from urban showcases to systemic reform. Pakistan needs a rights-based digital framework, credible regulation, and equitable investment that extends beyond elite urban zones. Only then can the promise of a digital economy translate into real progress for all Pakistanis, not just those within Islamabad’s city limits. *