Pakistan’s $78 million Digital Economy Project faces delays, struggles to meet targets

Nearly two years after its approval, Pakistan’s $78 million Digital Economy Enhancement Project is facing significant delays, with only 7.39% of the total funds disbursed and no transactions processed on the Pakistan Business Portal. Although institutional frameworks have been set up, core components of the project remain non-functional, Business Recorder reported. 

Approved in March 2024, the project aims to digitise business registration, licensing, and government-to-business services to improve ease of doing business. 

However, the Pakistan Business Portal, designed to facilitate digital registration and regulatory processes, has yet to process any registrations, licenses, or certificates. Additionally, no business-to-government (B2G) services have been moved online.

The World Bank’s latest report reveals that just $5.32 million of the total $78 million has been disbursed, with the project scheduled to close by July 31, 2028. Despite these setbacks, progress toward the project’s development objectives is rated as “Moderately Satisfactory,” with the overall risk rating improving from "Substantial" to "Moderate."

One notable development is the rollout of Pakistan’s national digital identity system, which issued 850,000 digital IDs between August and December 2025, in line with the Digital Nation Pakistan Act, 2025. The Digital Vault, accessible through the PakID app, provides verifiable credentials such as family registration, vehicle registration, and vaccination certificates.

Furthermore, the National Data Exchange Layer (NDXL) has processed 1.2 million transactions, with seven entities integrated into the platform. However, crucial reforms, including enterprise architecture, data governance, and cybersecurity measures, remain incomplete.

The project also aims to cut broadband network rollout permit processing time from 120 days to 65 days by November 2027, but no progress has been made on this target. By 2027, the project plans to reach 40 million users, process 4,000 annual transactions through the business portal, and achieve a 75% user satisfaction rate.