A recent report titled “Economic Impact Report: Agay Barho: Empowering Pakistan’s Digital Economy” highlights the transformative potential of digital technologies in enhancing Pakistan’s export economy. By 2030, digital exports are projected to contribute an additional $6.6 billion (PKR 1.8 trillion) annually, driven by sectors such as mobile apps, online video services, cross-border digital advertising, and e-commerce.
The report underscores the growing importance of digital technologies and Artificial Intelligence (AI) in Pakistan’s economic landscape. It emphasizes the need for strategic policies to harness this potential, which could significantly bolster the country’s economic growth and address macroeconomic challenges like balance of payments, inflation, and unemployment.
To capitalize on these opportunities, the report suggests that Pakistan must focus on developing a digitally skilled workforce. Currently, there is a significant skills gap, with 80 percent of IT graduates lacking industry-relevant skills. Addressing this gap could add Rs. 2.8 trillion to Pakistan’s GDP by 2030 through digital skills training and the adoption of educational technologies.
The report projects robust growth in online video services, with Pakistani creators expected to see a 10 percent compound annual growth rate (CAGR) from 2023 to 2030. Mobile apps and cross-border e-commerce are also anticipated to grow at 8 percent and 7 percent annually, respectively. With two-thirds of Pakistan’s population under 30, there is a strong potential to equip this young workforce with the necessary digital skills through accessible training programs.
Education technologies can play a crucial role in personalizing learning and providing on-demand training, enhancing the skill acquisition process for workers. Building a future-proof economy will require leveraging digital exports and upskilling opportunities, with companies like Google helping to connect Pakistan to these growth avenues.
Pakistan produces over 25,000 IT graduates annually and boasts over 300,000 English-speaking IT professionals, making it the third-largest freelance market globally. However, continuous investment in digital skills training and education is essential to maintain competitiveness in the rapidly evolving digital landscape.
The report highlights a significant mismatch between the digital skills employers seek and those possessed by the workforce. According to a 2021 survey by the Pakistan Software Houses Association for IT and ITES (P@SHA), over 80 percent of IT graduates lack the necessary technical skills. The educational curriculum must adapt to meet the demands of the digital economy, particularly with the rise of AI.
Pakistan’s young workforce recognizes the importance of digital skills, with 72 percent considering basic digital skills crucial for employment. Advanced skills such as data analysis, digital marketing, and IT support are also highly valued and in demand.
As Pakistan navigates its digital future, the integration of AI-powered products and solutions will be key to equipping the workforce with essential digital skills, creating more job opportunities, and driving sustainable economic growth.
