Pakistan is at a critical juncture in its digital transformation. With a population of almost 200 million and a young demography, Pakistan has the potential to become a digital powerhouse. But for the country to realise this potential, the right enabling policies need to be in place. These include encouraging investment in high-speed, reliable and robust digital infrastructure, creating a trusted environment for digital interactions, fostering a broad choice of locally relevant content and services, and supporting digitally willing and engaged people and businesses.
The mobile-enabled digital revolution is already empowering people and fueling economic growth in Pakistan. For example, mobile connectivity is changing the landscape of financial inclusion, with mobile money ('branchless banking') giving many people access to financial services for the first time. Half of the adult population (approximately 60 million people) have access to a mobile phone but do not have a bank account. In 2016, there were 9.8 million active branchless banking accounts generating transactions of almost PKR 2.2 trillion (USD$20.8 billion) - equivalent to approximately seven percent of Pakistan's GDP.
Despite such progress, there is still a considerable amount of work to do in building a mobile-enabled digital economy. The Government of Pakistan recognizes this need and has already stated its strong belief in the adoption of digital technologies as enablers of socio-economic development and transformation in its Digital Pakistan Policy 2017 plan. Creating a policy framework that encourages investment in mobile connectivity and resets regulations for the new digital landscape must be a priority for the government. Since the launch of 3G and 4G services in mid-2014 in Pakistan, mobile operators have invested nearly USD$2 billion (excluding spectrum costs) to expand mobile broadband coverage. With continued investment by mobile operators - estimated to require a further USD$ 2.8 billion over the next four years - 90 percent of the Pakistani population will have access to mobile broadband by 2019.
To promote growth in digital services, telecoms regulations need to be modernized to reflect the changing competitive landscape. The new digital ecosystem requires a more flexible regulatory approach, a competition assessment framework that takes into account all aspects of the market, a streamlined licensing model and obligations, and flexibility for operators to trade spectrum and share network assets according to their commercial strategies. The Ministry of Information Technology and Telecom and the Pakistan Telecommunication Authority should be commended for recognizing the importance of reform and for consulting on spectrum trading and competition rules in the last few months. A new licensing framework and the transition to a new licensing model also require careful consideration during this reform process. The National Telecommunication Policy 2015 recognized the need for a new licensing regime to cater for the emerging technological and market trends. Transitioning from the current single-service licensing model to a unified licensing model will delink spectrum licenses from service licenses. This, in turn, will create an environment that fosters investment and innovation in new technologies and services.
To realise its full digital potential, Pakistan needs to modernise its regulatory framework. The GSMA welcomes the steps the Government is taking to do just that, aimed at ensuring that the citizens of Pakistan reap the benefits of a digital future.
(Mani Manimohan, Senior Director of Public Policy, GSMA)
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