World Bank approves $70 million for Punjab’s digital overhaul under connected Punjab programme

Punjab is set to receive a major boost to its digital infrastructure after the World Bank approved $70 million in financing for the Connected Punjab Programme (CPP), an initiative designed to widen internet access, strengthen digital government services and encourage the transition towards a cashless economy.

The financing, cleared by the World Bank's Board of Executive Directors, will be provided through the International Development Association (IDA) and forms part of a $278 million programme that also includes $208 million in counterpart funding from the Punjab government.

According to the World Bank, the programme has been structured to complement the federal government's Digital Economy Enhancement Project (DEEP), which is developing Pakistan's national digital public infrastructure. Connected Punjab is intended to extend those national investments at the provincial level by ensuring digital platforms, connectivity projects and policy reforms translate into practical services for residents and businesses.

A significant portion of the programme focuses on expanding broadband connectivity by making it easier for private companies to invest in digital infrastructure. The initiative seeks to remove regulatory and cost barriers that have slowed network expansion, particularly in underserved urban areas.

As part of the reforms, the average processing time for Right-of-Way (RoW) permits is targeted to fall from 90 days to 21 days. The World Bank estimates this will help expand fixed broadband coverage from 7.8 million people to 9.9 million by June 2031, bringing nearly 2.1 million additional people online while unlocking at least $50 million in private capital investment.

The programme also aims to modernise public sector technology by investing in shared government computing infrastructure, enabling provincial and local institutions to develop, operate and scale AI-powered public services more efficiently.

By June 2031, the initiative is expected to improve digitally enabled government services for 28.9 million people. It also seeks to raise the proportion of women using digital government platforms from 19 percent to 30 percent, supporting broader digital inclusion across the province.

Alongside improvements in connectivity and public services, the programme will establish the regulatory and technological foundations needed to reduce reliance on cash transactions. Plans include introducing a Digital Invoice Management System and interoperable payment infrastructure connecting invoices, payments and government reporting systems, with a target of 350,000 active users of cashless payment systems by June 2031.

World Bank Country Director for Pakistan Bolormaa Amgaabazar said digital connectivity has become critical infrastructure for economic opportunity, adding that the programme would expand broadband access, strengthen Punjab's digital backbone and create greater economic and public service opportunities, particularly for women and young people.

Meanwhile, Shahbaz Khan, Senior Digital Specialist at the World Bank in Pakistan, said the programme represents the provincial implementation of Pakistan's broader Digital and AI Compact. He said it complements federal investments by facilitating fibre broadband expansion through private sector participation, deploying locally relevant AI-enabled public services and building a digital payments ecosystem that supports formalisation and inclusive economic growth. Together with DEEP, he said, the initiative forms part of a coordinated national digital transformation strategy.