The unexpected global crisis of COVID-19 has revealed key areas where Pakistan can focus to accelerate its digital transformation. This pandemic has highlighted the importance of digitization in providing relief efforts and stabilizing the economy.

Increasing the Tax Net

Pakistan's tax revenue remains low at $15.8 billion for a population of 221 million. With 84% of the population unbanked, the shadow economy is vast, representing an opportunity. Digitizing the informal sector can expand the tax base and contribute to the nation's growth.

Targeting the Most Vulnerable

Digitization can also help streamline G2P payments, making them more transparent and efficient. As poverty is closely linked to financial exclusion, promoting financial inclusion through digital services will help the government reach the most vulnerable populations.

Reducing Reliance on Cash

The pandemic has emphasized the dangers of relying on cash. With lockdowns in place, many still queue for bills and payments, highlighting the need for mobile banking. Fintech solutions can bridge this gap, with over 76 million smartphone users poised to benefit from digital banking.

Digitizing Healthcare

A centralized, digital healthcare framework can help monitor patients' histories, reducing the need for retesting and enabling remote consultations. This system would save lives by improving efficiency in the healthcare sector.

E-Learning for the Future

Education is critical, and the current lockdown has significantly impacted students. E-learning could help Pakistan's 22.8 million out-of-school children. With 64% of the population under 30, there is an urgent need for educational technology to support the country’s youth.

The Path Forward

While COVID-19 has hindered economic growth, it also presents an opportunity for Pakistan to strengthen its digital infrastructure. By embracing digital solutions, the country can unlock its full potential and emerge stronger in the future.

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