Nearly two years after its approval, Pakistan’s ambitious $78 million Digital Economy Enhancement Project is grappling with significant implementation delays, according to a recent report by Business Recorder. Despite establishing institutional frameworks, the project’s core components, including the Pakistan Business Portal, remain largely non-functional, with just 7.39 percent of total funds disbursed to date.
The project, approved in March 2024, is designed to transform Pakistan’s business environment by digitizing critical government-to-business services such as business registration, licensing, and regulatory processes. It aims to streamline operations to boost ease of doing business and catalyze economic growth by moving these services online.
However, the Pakistan Business Portal, a key digital platform intended to facilitate online registration, licensing, and issuance of certificates, has yet to process a single transaction. Neither registrations nor licenses have been issued via the portal, and no business-to-government services have transitioned to the digital format, leaving the project’s digital transformation goals unfulfilled.
Financially, the World Bank’s latest project report reveals a dismal disbursement rate, with only $5.32 million released from the allocated $78 million budget. The project is scheduled to conclude by July 31, 2028, but current progress raises questions about whether timelines and targets will be met.
Despite the setbacks, the project’s progress towards its development objectives is rated “Moderately Satisfactory” by the World Bank, and the overall risk rating has improved from “Substantial” to “Moderate.” This suggests cautious optimism amid the implementation challenges.
Among the few bright spots in the digital initiative is the rollout of Pakistan’s national digital identity system under the Digital Nation Pakistan Act, 2025. Between August and December 2025 alone, the system issued approximately 850,000 digital IDs. The Digital Vault, accessible via the PakID app, enables citizens to access verifiable credentials including family registration details, vehicle registration, and vaccination certificates, marking a significant step in digital identity management.
Another advancement is the National Data Exchange Layer (NDXL), which has processed 1.2 million transactions and integrated seven entities into its platform. However, several critical reforms related to enterprise architecture, data governance, and cybersecurity remain incomplete, undermining the overall digital infrastructure’s robustness and security.
The project also sets ambitious targets such as reducing broadband network rollout permit processing time from 120 days to 65 days by November 2027. Unfortunately, there has been no measurable progress on this front so far. By 2027, the project aims to serve 40 million users, facilitate 4,000 annual transactions through the business portal, and achieve a 75 percent user satisfaction rate.
The slow pace of implementation raises concerns regarding the country’s broader digital transformation agenda. Digitizing government services is crucial for improving efficiency, transparency, and economic competitiveness. Delays risk diminishing public trust and could stall Pakistan’s efforts to modernize its digital economy.
As the project moves forward, enhanced coordination between government agencies, clearer accountability mechanisms, and increased investment in technical capacity will be vital to overcoming current hurdles. Achieving the project’s ambitious goals is essential not only for simplifying business processes but also for positioning Pakistan as a digitally enabled economy capable of attracting investment and fostering innovation.
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