Pakistan’s digital economy (DE) has shown remarkable growth over the past two decades. From a modest volume of approximately US$100 million in 2000, it expanded to US$1–2 billion by 2010 and reached an estimated US$12–15 billion in 2023.

Projections suggest this figure could rise to US$60–75 billion by 2030, and potentially reach US$80–150 billion by 2035.

In the early 2000s, the digital economy’s contribution to GDP was negligible—less than 0.1 percent. By 2010, this share grew to 0.5 percent, and by 2020, it had reached 1–1.5 percent. In 2023, the contribution stood between 1.5 percent and 3 percent. Looking ahead, this share is expected to climb to 3–5 percent by 2025, 5–7 percent by 2030, and could potentially reach 15–25 percent of GDP by 2035.

The sector has exhibited an impressive compound annual growth rate (CAGR) of 15–20 percent over the past 20 years, driven largely by the country’s 140 million internet users—64 percent of whom are under the age of 30—and an 85 percent mobile connectivity rate. Pakistan now ranks fourth globally in freelancing, with a digitally literate youth population representing the true engine of future digital growth.

Key drivers of this growth include rising internet penetration, innovations in fintech, the rapid expansion of e-commerce, increasing IT exports, and supportive government policies.

As of 2024, Pakistan had 195 million telecom subscribers, with broadband penetration reaching 57 percent. Current internet penetration stands at 35–40 percent, with projections indicating it will rise to 60–65 percent by 2030.

The e-commerce sector is growing at a CAGR of 25–30%, with a market size of US$6 billion in 2023,........

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