Digital Transformation: Pakistan is Now Online!

Pakistan's digital transformation is in full swing. Over three-quarters of Pakistanis living in the top three metros of Karachi, Lahore and Islamabad are connected to the Internet, according to a report titled "Journey to Digital" produced by global tech giant Google and Kantara consultants. Researchers found that two-thirds of urban and nearly half of rural Pakistanis regularly use the Internet in the South Asian country of 220 million, the 5th most populous nation in the world. It has a young population with the median age of 22.8 years. 46% of Pakistanis access the Internet everyday.  They use the Internet for education, entertainment, shopping and to search for information.

Over Half of All Pakistanis Are Connected to the Internet. Source: Google-Kantar

Pakistan has seen a phenomenal growth of 3500% in broadband subscriptions over the last 8 years . Pakistanis now own more than 103 million smartphones with mobile broadband subscriptions. In a Youtube presentation of the report, Faraz Azhar, Industry Head, Performance, South Asia Frontier Markets, Google said: “With half of its population on the internet - Pakistan is now online!"  

Google Search and YouTube are the most popular Internet applications in Pakistan, according to the study. YouTube is used by nearly 90% of all internet users in Pakistan for streaming music and watching video/TV, and 38% of Pakistan's internet users go to YouTube in the research phase of their shopping journey. 

Pakistan has also experienced an e-commerce boom in the midst of the COVID pandemic. 71% of Pakistani shoppers find purchasing products or services online easy, while 66% find it convenient. Another 54%  find that online shopping websites or apps give personalized product recommendations, which answer common questions. Two-thirds of consumers believe that online shopping is the way forward. They say they will continue to buy products or services online after the COVID-19 pandemic.    

Faraz Azhar, Industry Head, Performance, South Asia Frontier Markets, Google said: “With half of its population on the internet - Pakistan is now online! This is the first time Google and Kantar released a study to understand more about Pakistan’s internet population. But it’s not only about people getting online, this research has uncovered new insights and behaviors that show how COVID is impacting online behaviour and the digital opportunities waiting to be unlocked.” 

Global Investors of Pakistani Startups. Source: Google-Kantar

"More people are coming online in Pakistan, creating a great opportunity for eCommerce businesses - if they are ready to seize it. As we see more exploration of the internet beyond social, e-retailers can capture natural cross-category purchasing on its rise, but only if they have first established themselves and their product offering in an online marketplace," he said.
Pakistan Startup Funding. Source: Google-Kantar

With expanding Internet infrastructure and rapidly growing user base, Pakistan is now seeing robust growth in venture money pouring into technology startups. Pakistani startups are on track to attract more than $230 million in funding in 2021, more funds than all the money raised by Pakistani startups in their entire history. A recent example is Kleiner Perkins, a top Silicon Valley venture capital investment firm, that led series A round of $17 million investment into Pakistani start-up Tajir. The startup operates an online marketplace for small store merchants in Pakistan. The announcement came via a tweet by Mamoon Hamid, a Pakistani-American Managing Partner at Kleiner Perkins who led the investment. Last year, Tajir raised a $1.8 million seed round.  The company's revenue has increased by 10x since its seed round. 
Pakistan Technology Exports Trend 2007-2021. Source: Arif Habib

Pakistan's technology exports are experiencing rapid growth in double digits over the last decade. Total technology exports jumped 47% to $2.1 billion in fiscal year 2020-21. 
Pakistan University Enrollment Growth. Source: Encyclopedia of Higher Education
The foundation for Pakistan's digital transformation was laid with the higher education reform and telecommunications deregulation and investments starting in the year 2001 on President Musharraf's watch. With huge increase in higher education funding, Higher Education Commission Chairman Dr. Ata ur Rehman succeeded in establishing 51 new universities during 2002-2008. As a result, university enrollment (which had reached only 275,000  from 1947 to 2003) soared to about 800,000 in 2008. This helped build a significant human capital that drove the IT revolution in Pakistan.      
Here's a video presentation of Pakistan's "Journey to Digital":
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  • Riaz Haq

    1,800 TCF schools: Jazz digitally enabling TCF to implement tech-enabled learning - Pakistan - Business Recorder

    https://www.brecorder.com/news/40227050


    KARACHI: Jazz, Pakistan’s leading digital operator and a part of VEON Group, is digitally enabling The Citizens Foundation (TCF) to implement tech-enabled learning across 1,800 TCF schools and ensuring an advanced learning experience for over 250,000 students nationwide.

    As part of this initiative, 23 computer labs have already been revamped, and a school management app has been introduced in all TCF schools, offering efficiency, transparency, and accuracy of data collection and management for all students, faculty, and non-faculty employees.

    The blended learning solution for primary students is an innovative approach that combines online and offline education to provide a more interactive and engaging learning experience, while the computer curriculum under DLP (Digital Literacy Program) for grades 6-8 is specifically designed to equip students with digital-age skills.

    The digitization initiative also facilitated the translation of books and learning materials for grades 6 and 7 into Urdu, creating a bilingual curriculum, along with a scripted bilingual lesson plan. In addition, 700 Android phones were delivered to schools across the entire TCF network, which aided in implementation of blended learning program.

    Commenting on the initiative, Jazz CEO Aamir Ibrahim said, "We are proud to have collaborated with TCF on this important initiative to digitize schools and provide students with access to the latest technology. Driven by the impetus to digitally empower youth and to assist the Government of Pakistan in realizing its Digital Pakistan vision, Jazz continues to club its resources and expertise in creating long-term, sustainable solutions and partnerships that uplift individuals and the larger community."

    Additionally, the female teacher training program is a crucial part of the grant as it will digitally empower women to take on more leadership roles and optimize their performance, which has been a key focus area for Jazz toward building an integrated and equitable society.

  • Riaz Haq

    Government to establish 10 IT parks by next year: IT Ministry - Pakistan - Business Recorder

    https://www.brecorder.com/news/40304707

    The government has announced the establishment of ten new Software Technology Parks across the country by next year, according to Radio Pakistan.

    This was stated during a briefing by the Ministry of Information Technology to a high-level meeting chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad.

    The meeting was informed that 100 new e-employment centers will also be set up in the country by next year.

    The project of Islamabad IT Park will be completed next year with the cooperation of South Korea. It will provide startups, incubation centers, banks, restaurants, and other facilities.

    The meeting was informed that South Korea is also collaborating in establishing an information technology park project near Jinnah International Airport in Karachi which will be completed by 2027.

    So far, 43 software technology parks have been established in 29 cities of the country.

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    Tech parks for growth

    https://www.thenews.com.pk/print/1177295-tech-parks-for-growth


    In today’s fast-paced global economy, technology parks play a crucial role in fostering industrial development by providing an ecosystem conducive to innovation, collaboration and entrepreneurship.

    These designated areas are often referred to as research and technology parks or science parks. They can serve as catalysts for economic growth, driving technological advancements, attracting investment, and nurturing talent. By bringing together academia, industry, and government, these parks facilitate collaboration and knowledge exchange, leading to breakthrough discoveries and technological advancements.

    They are often located within or near universities so that they have ready access to highly trained workers in various fields. In Pakistan, I was involved in establishing a technology park in the National University of Science and Technology in Islamabad as well as setting up several software technology parks in early 2001 in Islamabad, Lahore, Karachi and Peshawar. More recently, an excellent technology park was established under my supervision within the Pak-Austria Fachhochschule (University of Applied Science and Engineering) in Haripur, Hazara.

    Technology parks play a crucial role in enhancing the competitiveness of industries by providing access to state-of-the-art infrastructure, specialized facilities, and cutting-edge equipment. Companies located within technology parks benefit from shared resources such as research laboratories, testing facilities, and prototyping centres, enabling them to accelerate the development and commercialization of new products.

    Moreover, the clustering effect of technology parks encourages the formation of industry clusters, where companies operating in related sectors can collaborate, share best practices, and access a pool of skilled talent.

  • Riaz Haq

    Profit
    @Profitpk
    In 2016, Netflix entered Pakistan and quickly proved the country was more than ready to shift from television to streaming. But despite the early success, Netflix has been dethroned as the leading OTT platform in the country by Tamasha. This is that story:

    https://x.com/Profitpk/status/1866726498310185060

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    Profit
    @Profitpk
    The answer is simple. Tamasha’s success, and indeed the success of other platforms such as ARY Zap and Tapmad, has been through streaming cricket. But what do the numbers look like? For the full picture, read on at:

    https://profit.pakistantoday.com.pk/2024/12/09/streaming-wars-has-j...

    https://x.com/Profitpk/status/1866726500742865192

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    The days of passive television consumption are long gone. Viewers now command their entertainment destiny, summoning favorite shows with a mere tap on a smartphone or click of a remote. Streaming giants like Netflix, Amazon, HBO, and Disney have revolutionized how we consume content, transforming television from a scheduled experience to an on-demand universe.

    Binge-watching has become more than a trend—it’s a cultural phenomenon. Viewers no longer wait for weekly episodes; entire seasons are devoured in marathon sessions, reflecting an insatiable appetite for storytelling that transcends traditional media boundaries.

    For countries in South Asia, this digital content revolution arrived fashionably late. Limited internet access and prohibitive subscription costs initially kept the region on the periphery of the global streaming landscape. But that was then.

    Today, digital content consumption has evolved into a nuanced, immersive experience. Unlike fleeting digital interactions, Over-the-Top (OTT) platforms now offer meticulously curated content that commands viewers’ undivided attention. The average OTT session now stretches far longer than traditional digital engagements, signaling a profound shift towards intentional, quality viewing.

    This transformation has birthed a fascinating global content ecosystem in Pakistan. K-pop and K-dramas from South Korea sit alongside Japanese anime, while American psychological thrillers and Turkish historical narratives serve as a testament to the borderless nature of modern entertainment. Platforms like Netflix have become global cultural conduits, offering libraries that reflect this rich, diverse content landscape.

    While Netflix dominated the Pakistani market since 2016, the post-COVID streaming landscape has become a battleground of emerging platforms. Amid numerous launches and quick exits, one player has emerged distinctly: Tamasha, Jazz’s OTT platform, which has carved a remarkable niche in merely three years.

    But has Tamasha truly cracked the code of Pakistan’s streaming market? To understand its strategy and the broader competitive dynamics, Profit dives into the intricate world of streaming platforms.