A long-awaited institutional move could unlock growth for Pakistan’s digital sector but only if it delivers real authority, inclusion, and outcomes.
Pakistan’s digital economy has quietly become one of the country’s most resilient growth engines. According to official government data, Pakistan’s IT and IT-enabled services exports have crossed USD 3 billion annually, while the broader digital services sector now employs hundreds of thousands of professionals, including an estimated 1.5 million freelancers, placing Pakistan among the top five freelance markets globally. At the same time, the country has seen a rapid rise in tech startups across fintech, healthtech, e-commerce, AI, and SaaS yet much of this growth has occurred in the absence of a coherent, sector-specific governance framework.
Against this backdrop, Pakistan’s move to establish its first dedicated council for digital businesses represents a potentially significant institutional correction. The proposed council aims to provide a structured interface between policymakers and a digital sector that now contributes meaningfully to exports, employment, and innovation but has long operated across fragmented regulations, overlapping authorities, and inconsistent policy interpretation.
If designed with authority and inclusivity, the council could help transition Pakistan’s digital economy from high-growth but policy-fragile to strategically governed and globally competitive. However, without clear mandate, representation, and accountability, it risks becoming another consultative body with limited real-world impact.
Potential Benefits for the Digital Ecosystem
1. A Unified Voice for a Fragmented Sector
One of the most immediate benefits of a Digital Businesses Council is the creation of a consolidated representation mechanism. Pakistan’s digital economy currently spans software exports, e-commerce, fintech, healthtech, AI startups, platforms, and freelancers, many of whom face overlapping but uncoordinated regulatory challenges. A single council can aggregate industry feedback, reducing policy fragmentation and ensuring that government consultations are informed by cross-sector realities rather than isolated lobbying efforts.
2. Improved Policy Design and Regulatory Clarity
Digital businesses in Pakistan frequently cite ambiguity around taxation, data protection, cross-border payments, and compliance as growth constraints. A formalized council can function as a policy advisory body, enabling early-stage consultation on draft laws and regulations. This proactive engagement could prevent policy misalignment, reduce compliance friction, and foster regulatory predictability critical for both domestic startups and foreign investors.
3. Strengthening Pakistan’s Digital Investment Narrative
At an international level, the council could act as an institutional signal that Pakistan is serious about organizing and governing its digital economy. Similar councils in regional and global markets have helped improve investor confidence by demonstrating structured public-private dialogue. If empowered, the council could support digital FDI, export growth, and participation in global digital trade discussions.
4. Platform for Long-Term Digital Strategy Alignment
Beyond reactive advocacy, the council has the potential to contribute to long-term national digital strategy linking skills development, innovation policy, export promotion, and emerging technologies under a shared framework. This alignment is particularly important as Pakistan attempts to move from services outsourcing toward higher-value digital products and platforms.
Critical Considerations and Structural Risks
While the concept is promising, several risks warrant careful attention.
1. Risk of Symbolism Without Authority
A key concern is whether the council will possess genuine influence or remain a consultative body with limited decision-shaping power. Without formal policy input mechanisms, budgetary linkage, or regulatory feedback loops, the council risks becoming ceremonial rather than impactful.
2. Representation and Power Imbalance
If membership is dominated by large firms or well-connected platforms, early-stage startups, women-led businesses, freelancers, and regional founders may remain underrepresented. A council that does not reflect the diversity of Pakistan’s digital economy could inadvertently reinforce existing inequities rather than address them.
3. Overlap With Existing Institutions
Pakistan already has multiple bodies operating in adjacent spaces—such as PSEB, trade associations, and sector-specific forums. Without clear mandate differentiation, the council could add institutional complexity instead of simplifying engagement. Clear coordination mechanisms will be essential to avoid duplication.
4. Accountability and Transparency
For the council to maintain credibility, its recommendations, membership criteria, and decision-making processes must be transparent. Without published outcomes, measurable KPIs, or stakeholder reporting, trust in the council’s effectiveness could erode quickly.
What Will Determine Success
The success of Pakistan’s first Digital Businesses Council will ultimately depend on three factors:
- Formal authority and policy integration, not just advisory status
- Inclusive and merit-based representation across sectors, regions, and gender
- Outcome-driven governance, with clear performance benchmarks
If these conditions are met, the council could evolve into a cornerstone institution for Pakistan’s digital economy. If not, it risks becoming another well-intentioned but underutilized platform.
Conclusion
The establishment of a Digital Businesses Council is a timely and potentially transformative step. However, institutional design will matter more than intent. With the right structure, the council can help Pakistan transition from ad-hoc digital growth to a coordinated, policy-enabled digital economy. Without it, the opportunity may be lost to bureaucracy and symbolic engagement.
