The digital divide

EDITORIAL: A cashless economy cannot be built on unreliable internet. That uncomfortable reality sits at the heart of two developments that emerged on the same day. On one hand, the prime minister recently, and very proudly, highlighted Pakistan’s progress towards digitising payments and urged authorities to accelerate the country’s transition towards a cashless economy. On the other, a parliamentary committee was informed that poor internet quality continues to plague not only remote regions but even major cities, with prolonged power outages, weak infrastructure and slow connectivity undermining telecom services. Together, they expose the gap between ambition and execution. The government’s aspirations deserve support. Expanding digital payments improves transparency, broadens financial inclusion, reduces the informal economy and makes commercial transactions faster and more efficient. The reported increase in QR-code merchants, mobile banking users, digital remittances and the expansion of the RAAST payment system all represent genuine progress. Pakistan cannot afford to remain a predominantly cash-based economy while the rest of the world moves rapidly towards digital finance. Progress, however, depends upon infrastructure every bit as much as policy. Digital transactions require stable internet access. Online banking requires uninterrupted connectivity. E-commerce depends upon reliable broadband. Digital wallets, cloud computing, remote work, artificial intelligence and software development all assume that users can remain connected without repeated interruptions. When internet speeds fluctuate unpredictably or mobile networks deteriorate during routine power outages, the entire digital ecosystem begins to suffer. That is precisely what the parliamentary committee highlighted. Members expressed concern that poor internet quality has become a persistent problem even in Karachi, while telecom operators acknowledged that no new infrastructure has yet accompanied the rollout of 5G services. Existing towers continue to shoulder growing demand, and prolonged electricity shortages regularly disrupt mobile services. Until these structural weaknesses are addressed, digitisation will inevitably remain constrained by the very infrastructure upon which it depends. The consequences extend far beyond consumer inconvenience. Pakistan has spent years encouraging freelancing, software exports and the broader digital economy. Thousands of young professionals now earn their livelihoods by serving international clients from within the country. Software developers, artificial intelligence engineers, digital designers and technology consultants compete in global markets where reliability matters as much as technical ability. Missed deadlines caused by internet disruptions, unstable video conferences and interrupted cloud access damage reputations that often take years to build. International clients rarely distinguish between technical failures and professional failures. They simply move their business elsewhere. The same applies to Pakistan’s rapidly growing artificial intelligence ecosystem. AI development depends heavily upon high-speed, uninterrupted connectivity for accessing cloud platforms, training models, collaborating across borders and deploying applications. Countries competing for technology investment are expanding digital infrastructure as aggressively as they build roads and power plants. Pakistan cannot realistically aspire to become part of that global transformation while basic internet reliability remains uncertain. The irony is difficult to ignore. The government is asking citizens and businesses to embrace a digital future while many continue struggling with the analogue shortcomings of unreliable electricity and inconsistent telecommunications infrastructure. Digital payments cannot flourish where internet access remains unpredictable, just as online commerce cannot expand where connectivity repeatedly collapses. Fortunately, the problems identified are not beyond solution. The committee’s recommendations to strengthen telecom infrastructure, improve power supply to mobile towers and expand the use of renewable energy offer practical starting points. Infrastructure investment rarely attracts the headlines generated by policy announcements, but it is infrastructure that ultimately determines whether ambitious policy objectives succeed or fail. Pakistan’s digital transition is both necessary and inevitable. The question is whether implementation will keep pace with aspiration. A cashless economy cannot rest upon unstable networks, intermittent electricity and overburdened telecom infrastructure. If digitisation is to become the cornerstone of sustainable economic growth, as the prime minister rightly hopes, then building a fast, reliable and resilient digital backbone must become an equally urgent national priority. Copyright Business Recorder, 2026