ADB Flags Pakistan’s Slow Digital Trade Growth

The Asian Development Bank (ADB) has raised concerns over Pakistan’s weak performance in digital trade, citing fragmented policies, underdeveloped infrastructure, and poor regulatory coordination. In its latest report, Digitally Connected Central Asia Regional Economic Cooperation (CAREC): Digital Trade, Emerging Regulatory Challenges, and Solutions, the ADB warned that Pakistan is lagging far behind its regional peers in cross-border e-commerce and digitally delivered services.

According to the report, Pakistan’s digitally delivered trade in 2024 stood at only USD 7.93 billion, far below Association of Southeast Asian Nations (ASEAN) countries such as Malaysia (USD 39.04 billion), the Philippines (USD 38.57 billion), and Thailand (USD 50.57 billion). Intra-CAREC trade also remains weak, accounting for just 7% of total trade compared with ASEAN’s 24%, showing limited regional integration.

The ADB highlighted several barriers, including poor internet connectivity, lack of integrated data systems, weak payment co, and delays in ratifying the United Nations ESCAP Framework Agreement on Facilitation of Cross-Border Paperless Trade. Analyst Ibrahim Amin stressed that Pakistan must first synchronize internal government and private data systems before competing globally.

To close the gap, the ADB recommended Pakistan adopt a long-term digital trade policy, set up a regional digital single window, invest in smart ports and data centres, and expand digital skills for women and youth. Without reforms, Pakistan risks falling further behind its regional competitors in the fast-growing digital economy.