The Asian Development Bank (ADB) has warned that Pakistan is falling behind its regional peers in harnessing digital trade, citing fragmented regulations, inadequate infrastructure, and weak policy coordination as major obstacles. In a report released on September 19 titled “Digitally Connected Central Asia Regional Economic Cooperation (CAREC): Digital Trade, Emerging Regulatory Challenges, and Solutions,” the bank highlighted that despite Pakistan’s strategic location at the crossroads of South and Central Asia, reforms necessary to support e-commerce and digitally delivered services remain limited.
The report stressed, “Several CAREC member countries, including Georgia, Kazakhstan, and Pakistan, have yet to ratify the UNESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, which aims to enable and accelerate the implementation of digital trade facilitation measures.”
ADB data shows Pakistan’s digitally delivered trade in 2024 was just $7.93 billion, significantly lower than ASEAN economies such as Malaysia ($39.04 billion), the Philippines ($38.57 billion), and Thailand ($50.57 billion). Moreover, intra-CAREC trade, excluding China, stands at only 7% of total trade compared with ASEAN’s 24%, underscoring structural weaknesses and low regional integration.
Banking and financial services analyst Ibrahim Amin told The Express Tribune that Pakistan’s institutions lack unified data systems. “Almost every government and private organisation in Pakistan lacks consolidated data structures… None of them is synced with one another,” he said.
According to ADB, the country faces several hurdles, including poor internet access, limited data centres, weak payment interoperability, and fragmented regulations. Delays in ratifying the UNESCAP framework and absence of a unified digital regulatory body further stall progress. In addition, gaps in consumer protection, cybercrime enforcement, and data privacy laws leave Pakistan trailing behind ASEAN countries that have already adopted comprehensive frameworks.
Although the single-window trade system is a step forward, ADB noted it remains inconsistent with regional best practices, preventing Pakistan from unlocking its digital trade potential.
ADB Flags Pakistan’s Digital Trade Gaps: Weak Reforms, Poor Infrastructure Holding Back Growth
