With a young population, Pakistan is positioning its youth as drivers of digital growth and innovation.
The Prime Minister stated that 79% of the relief program funds were transferred smoothly and transparently through digital wallets. PHOTO: APP
In a world reshaped by the Fourth Industrial Revolution, digital transformation is no longer an outcome; It is the engine of national resilience, economic competitiveness and inclusive development.
For Pakistan, home to one of the world’s largest youth populations and burgeoning digital talent, harnessing this revolution is not just an aspiration – it is imperative. At this historic juncture, Pakistan is charting a strategic path towards digital leadership, with a clear focus on youth skills, technology adoption and integration into the global digital economy.
Pakistan’s information technology (IT) and IT-based services sector has rapidly transformed from a peripheral contributor to an economic pillar. In fiscal year 2024-25, Pakistan recorded an all-time high of $3.8 billion in IT exports, reflecting sustained growth and global demand for digital services. This marked a year-on-year increase of 18% and underlined the strategic importance of technology services in stabilizing the economy and generating foreign exchange.
Within this growth, the freelancer segment increased by almost 90%, proving that Pakistan’s young professionals compete strongly in global digital markets. The country is also among the world’s top five independent economies, driven by a dynamic pool of English-speaking talent and adaptable digital workers.
These achievements place Pakistan’s digital exports alongside traditional business sectors, reflecting the strategic shift towards knowledge-intensive economic activity. But while the momentum is real, Pakistan’s global positioning requires deeper structural strengthening, particularly in innovation ecosystems and digital competitiveness.
In terms of global innovation benchmarks, Pakistan is on an upward trajectory but with significant room for ambition. In the Global Innovation Index 2024, which evaluates economies based on innovation inputs (e.g. infrastructure, human capital, research) and outputs (knowledge and creative outputs), Pakistan ranked 91st among 133 economies. Among lower-middle-income countries, this places Pakistan above several peers, but behind several regional neighbors whose policies have successfully integrated education, R&D and private sector linkages into national innovation systems.
This ranking highlights a fundamental idea: talent and results are emerging, but investment in research, infrastructure and human capital must accelerate to close the gap with global innovators. In parallel, global analyzes show that countries with advanced digital economies, led by Switzerland, the United States and Singapore, continue to benefit from strong digital competitiveness ecosystems that encompass talent, infrastructure and forward-thinking regulatory frameworks.
Global institutions emphasize that digital skills and infrastructure are critical for future growth. The World Bank identifies digital transformation as essential for participation in the global digital economy, emphasizing inclusive access to reliable Internet and the development of digital skills as enablers of productivity and competitiveness.
Recognizing this, Prime Minister Shehbaz Sharif’s vision for Pakistan’s digital future is bold, multi-dimensional and youth-centric. Rethink technology as a state capacity, not simply as a sector. The strategy emphasizes scaling digital skills, particularly in high-impact areas such as artificial intelligence (AI), cloud computing, cybersecurity, data analytics and blockchain technologies; prioritize broadband connectivity, cloud access and next-generation networks essential for participation in global digital markets; and align regulation with global best practices to attract investment, maintain privacy and security standards, and encourage entrepreneurship.
AI is at the center of this vision. While the AI revolution deepens global divisions (with advanced economies leading the way in research and preparation), the opportunity for developing nations lies in strategic adoption and the development of personalized skills. Recent global analyzes warn that uneven AI preparation could exacerbate inequalities: without proactive measures in regulation, education and infrastructure, developing countries risk being left behind in this critical technological change.
Pakistan’s biggest comparative advantage is its demographic profile. Almost two-thirds of the population is under 30 years old, offering a deep pool of potential digital talent. This is not simply a statistic; It is a public policy mandate.
Under the Prime Minister’s Youth Programme, youth empowerment is now integrated into the national digital strategy. It’s not about alms; it is about enabling economic participation at scale through digital skills training and certification aligned with international standards; self-employment and micro-business support that connects young professionals directly with global clients; start-up incubation and scale-up financing that foster innovative ideas in export-oriented companies; and public-private partnerships that integrate youth talent into emerging technology sectors.
This approach has already generated a measurable impact: thousands of Pakistani youth have upskilled in digital domains, leading to new sources of income, job creation and cross-border collaborations. Pakistan’s path to digital leadership is not without its challenges. Innovation ecosystem metrics highlight gaps in research spending, infrastructure and institutional frameworks. But these are challenges that can be transformed into strategic priorities when combined with political will and targeted investments.
The future of national competitiveness lies in our ability to rethink education systems around future skills; foster research and innovation ecosystems integrated with the needs of the industry; and align regulation with global AI governance standards to unlock investment and trust. The youth of Pakistan are not only beneficiaries of digital transformation; They are its architects.
As Pakistan strives to achieve an inclusive, resilient and globally competitive digital economy, international cooperation will be essential. We seek equitable access to knowledge, partnerships in research and innovation, and shared frameworks for AI governance that reflect both global standards and local contexts.
The message is clear: Pakistan’s digital agenda is a youth agenda, a growth agenda and an innovation agenda fit for global collaboration. Together with the global community – from the United Nations to industry leaders at the World Economic Forum and innovation coalitions at technology summits – Pakistan is ready to contribute significantly to shaping a digital future that is inclusive, prosperous and shared.
The writer is a member of the National Assembly and focal person of the Prime Minister’s Youth Programme.
