On digital inclusion

While financial inclusion is all the rage, digital inclusion has received relatively less focus in Pakistan. In ‘E-commerce: two exclusions,’ published July 11, 2018, BR Research recently highlighted how digital exclusion is hampering Pakistan’s digital economy. Now the SBP, in its latest quarterly report on the state of the economy, has picked up ‘Internet Inclusiveness’, lending the theme a powerful voice.

Using the EIU’s Inclusive Internet Index (2018) – which places Pakistan at 68th rank among 86 economies, lagging Bangladesh, India and Sri Lanka in South Asia – the SBP is arguing for more focus on demand-side of things. No matter how many gains are made in improving broadband coverage, they will not, SBP argues, be sufficient alone in gaining the most out of broadband connectivity.

There are three main issues identified by the central bank that hamper the demand-side of things. Let’s take them up one by one.

First up is the gender disparity. Despite having roughly equal share in population, male Internet access in Pakistan is close to three times female Internet access; male mobile ownership is more than twice as female ownership. Gender disparity is not exclusive to the digital domain, though. It is woefully apparent in other social and economic indicators as well, with a cultural context that can only soften over time.

Second issue is that of public literacy. This, again, is a broader social issue, with adult literacy rate hovering below 60 percent. With the provinces seen spending more every year on elementary and secondary education, literacy gains are expected to accrue over time. But a concurrent focus on imparting digital literacy can increase the uptake and beneficial usage of broadband.

And third issue is the production of localized content. This is not to say that local-language content is not present at all. Rather, localized online content is inadequate in critical areas, such as education, healthcare, agriculture, access to public services and finance. Arguably, provincial governments have to take the lead in the production of “relevant” online content as well as e-government services in regional languages. Then, just having local-language keyboards on smart devices can also be significant.

The issues identified by the SBP are indeed valid, but they are mostly chronic in nature. Significant progress in interlinked issues of gender disparity and literacy may take a generation. While efforts must be made to reduce digital gender gap and improve literacy, one cannot take the eye off of the supply-side issues relating to digital infrastructure.

For instance, fixed broadband penetration is abysmally low; 3G network is accessible to just two-thirds of the population; broadband speed is sub-par when compared with the region; and taxes on broadband and telecom usage still exist.

The manifestos released by major political parties have talked about ‘digital Pakistan’ and making Pakistan a software export powerhouse. Yet, detail is lacking when it comes to the issue of expanding affordable broadband access and enabling the people to make the most out of tech. But there is hope, for provinces have a bigger role to play here, leading to a digital race of sorts.