Pakistan is falling behind its regional peers in harnessing digital trade opportunities, as weak infrastructure, fragmented regulations, and lack of policy coordination continue to undermine its competitiveness, 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,” said that despite Pakistan’s strategic location at the crossroads of South and Central Asia, reforms needed to support cross-border e-commerce and digitally delivered services remain slow.
According to ADB estimates, Pakistan’s digitally delivered trade in 2024 stood at only $7.93 billion, far behind ASEAN economies such as Malaysia ($39.04 billion), the Philippines ($38.57 billion), and Thailand ($50.57 billion). Intra-CAREC trade, excluding China, accounts for just 7% of total trade, compared to ASEAN’s 24%, reflecting deep structural hurdles and weak integration within the bloc.
The report noted that Pakistan, along with Georgia and Kazakhstan, has yet to ratify the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, a key pact designed to accelerate digital trade facilitation measures.
ADB highlighted multiple barriers hampering Pakistan’s digital trade growth: underdeveloped digital infrastructure including poor connectivity and limited data centres; lack of payment interoperability; delays in ratifying regional frameworks; and the absence of a unified regulatory structure. Weak consumer protection and enforcement also place Pakistan behind ASEAN economies that have enacted robust data privacy and cybercrime laws.
“Digital transformation is no longer optional,” the ADB warned, contrasting Pakistan’s slow progress with ASEAN’s success, which is built on regulatory alignment, comprehensive e-commerce legislation, and large-scale investment in smart infrastructure. Without reforms, Pakistan risks being sidelined from global digital supply chains now worth over $500 billion.
The report recommended a long-term digital trade policy framework, investment in smart ports and trade corridors, a regional digital single window, and training programmes to build digital skills, particularly among women and youth.
