KARACHI – Pakistan is lagging behind its regional peers in digital trade reforms due to fragmented regulations, weak infrastructure, and poor policy coordination, the Asian Development Bank (ADB) cautioned in a report released on September 19.
The study, “Digitally Connected Central Asia Regional Economic Cooperation (CAREC): Digital Trade, Emerging Regulatory Challenges, and Solutions,” noted that despite Pakistan’s strategic position at the crossroads of South and Central Asia, reforms needed to support cross-border e-commerce and digital services remain slow.
According to ADB estimates, Pakistan’s digitally delivered trade in 2024 stood at $7.93 billion, far behind ASEAN economies such as Malaysia ($39.04bn), the Philippines ($38.57bn), and Thailand ($50.57bn). Intra-CAREC trade, excluding China, accounts for only 7% of total trade, compared to ASEAN’s 24%, reflecting weak integration.
The report highlighted key barriers: poor internet connectivity, lack of data centres, weak payment interoperability, delays in ratifying the UNESCAP framework on cross-border paperless trade, and absence of unified regulations. Weak consumer protection and limited enforcement further undermine competitiveness against ASEAN countries that have enacted strong cybercrime and data privacy laws.
Analyst Ibrahim Amin told The Express Tribune that most organisations in Pakistan lack consolidated data systems. “Each department maintains its own files. None of them is synced with another,” he said, adding that without internal integration, industries cannot collaborate or innovate.
The ADB warned that unless Pakistan aligns regulations, upgrades infrastructure, and embraces regional agreements, it risks exclusion from global supply chains where seamless digital flows are vital.
The report recommended a long-term digital policy, regional single window systems, smart ports, and skill development, especially for women and youth. Amin stressed Pakistan must “fix its own house first,” starting with organisational data consolidation to build talent, innovation, and competitiveness.
