According to Pakistan telecommunication authority annual report 2020, the Digital economy shows positive trends in Pakistan. According to this report around 42.2% of the total population is benefiting from internet services. In Pakistan 13 million internet users increase due to Coronavirus which is advantageous for the nation. Lockdown encourages Zoom schooling, Funds Transferring, Remote working, online shopping in Pakistan. Many businesses are shifted to online activities and switched to work from home policy.
Increasing digital progress is boosting productivity across all sectors. It will reduce the cost of economic and social transactions for firms, people, and the public sector. The digital economy helps in better communication by interlinking suppliers, workers, and stakeholders which indirectly improves the safety and efficiency of the business. Thus Digital economy is a solution for rising inequality, unemployment, and privacy concerns in Pakistan.
Positive Side Of Digital Economy
Some sectors increased during the covid-19 pandemic which boosts our digital economy.
1.Promotes Use of the Internet
Nowadays most of the work is done on the internet. Therefore, there is a dramatic rise in investment in technology. Thus, higher demand for hardware, technological research, software, services, digital communication, etc is there which has indirectly affected the employment level, imports, and exports of the country.
2.Rise in E-Commerce
During the rising Covid-19, E-commerce has also gained importance. Every task related to buying, distribution, marketing, creating, selling is becoming more easier all because of the digital economy.
With the help of the internet, people are well informed of everything. For example, it makes it easier to compare prices between products. It also brings information to a person’s fingertips. This is particularly important for buying and selling, studying, traveling, etc.
The Internet can save renting expensive buildings, by running most of the business through the internet. A digital economy helps to reduce the cost of firms, i.e. goods can be delivered from the warehouse to customers, rather than through shops. This enables lower costs and lower prices.
5.Benefits for the developing world.
The digital economy is opening up many opportunities for developing countries. For example, computer programmers in Pakistan can easily lead to new job opportunities and higher income from the western world. Virtual work became easier for women especially. It can also help reduce traffic congestion and pollution in the country.
All the transactions in the digital economy happen online through the Internet. Thus, there is no need for cash which indirectly reduces the black money and corruption in the market giving our economy more transparency.
How This Sector Can Be Improved
As we see an increasing trend of the Internet during the current pandemic, that is enormous. This is an opportunity for Pakistan to promote a digital economy that contributes to national wealth.
Digital transactions are increasing rapidly. Around 20% of overall transactions in the developed economies taken digitally. There is a need to overhaul the whole banking infrastructure and encourage businesses, retailers, petrol pumps, PIA, railway ticketing, schools, and colleges to introduce online payment methods.
There is a need to resolve internet infrastructure by expanding the number of undersea cables, and cross-border connectivity networks to prevent internet breakdown.
The central bank has suggested several measures, including expanding telecommunication infrastructure, undertaking awareness programs, and even recommending the government to waive off the duties for import of point-of-sale machines to help the digital economy to grow.
Government should provide different IT and Ecommerce courses for Pakistani youth. This will help our middle-class population to take advantage of the digital economy.
The government should the new generation’s energy, creativity, and skills towards a digital economy.
Pakistan has the 4th largest pool of freelancers in the world. Officials can launch tech companies to invest in Pakistan and allow these freelancers to gain employment to increase their income.
In the end, Pakistan can gain its financial stability during Covid-19 while earning from the internet. To earn money online in Pakistan is easy but you need some motivation and hard work. Our country can achieve its economic growth through a digital economy by focusing on trade and E-commerce, freelancing, education, entertainment, and health.