Pakistan's Broadband Future: Bridging the Digital Divide in Khyber Pakhtunkhwa

Pakistan’s digital future depends on overcoming a significant broadband gap, especially in underserved areas like Khyber Pakhtunkhwa. A recent report by the World Bank, "Evaluating Private Capital Mobilization Potential for Resilient Digital Connectivity, Phase 1: Khyber Pakhtunkhwa", emphasizes the need for public-private partnerships and regulatory reforms to attract investment and expand fiber infrastructure, helping the country bridge its widening digital divide.

Pakistan’s digital landscape is transforming, but a significant divide persists, particularly in underserved areas like Khyber Pakhtunkhwa (KP). A recent report by the World Bank, "Evaluating Private Capital Mobilization Potential for Resilient Digital Connectivity", examines the growing need for robust digital infrastructure, pinpointing challenges and potential strategies to expand broadband access across the region. As global demand for high-speed internet surges, Pakistan must overcome obstacles to ensure digital inclusion for all its citizens.

The Digital Divide: A Widening Gap

Globally, internet access has been expanding rapidly, with much of this growth fueled by the pandemic-driven shift to online services. However, not all nations are advancing at the same rate. In Pakistan, the gap between those connected to high-speed internet and those left with poor-quality connections is widening. Although the country’s demand for data has tripled since 2018, its fixed broadband infrastructure lags.

The report highlights that only 3.135 million Pakistanis have fixed broadband subscriptions in a country of over 230 million. At the current pace of deployment, it would take roughly 30 years for Pakistan to match the broadband levels seen in high-income countries. This issue is particularly pronounced in areas like KP, where the lack of reliable digital infrastructure hinders both economic development and access to essential services. While urban areas are better served, rural and remote regions remain largely disconnected.

Khyber Pakhtunkhwa: A Region in Focus

Khyber Pakhtunkhwa, with its diverse geography and high poverty rates, offers a snapshot of Pakistan’s broader digital challenges. The Digital Gaps Assessment Framework (DGAF), outlined in the report, identifies key areas in KP where policy reforms and strategic investments can make the most impact. The framework divides the region into four distinct zones based on their broadband coverage and market potential, ranging from well-connected urban centers to underserved rural communities.

Zone-0 includes urban areas with existing fiber connections, while Zones-1 and 2 highlight locations where broadband expansion is viable but requires policy and regulatory reforms. The final category, Zone 3, represents regions that will need ongoing public subsidies to sustain digital infrastructure. Expanding connectivity to Zones 1 and 2 can be achieved by improving regulatory frameworks and investing in public-private partnerships. By doing so, Pakistan can reduce the digital divide and provide better access to online services for millions of its citizens.

Challenges and Investment Needs

One of the biggest hurdles in expanding broadband access across KP is the high cost of fiber deployment, particularly in remote and difficult-to-reach areas. Additionally, regulatory barriers, such as complicated Right of Way (RoW) approvals, delay infrastructure projects. According to the report, improving the efficiency of these regulatory processes could speed up the expansion of fiber networks and attract more private investment.

Moreover, Pakistan’s macroeconomic situation is compounding the problem. Inflation, rising interest rates, and currency depreciation have significantly increased the cost of capital, making it harder for telecom companies to finance new infrastructure. As a result, many smaller operators struggle to keep pace with demand, leading to a reliance on outdated technologies like DSL and wireless local loops.

The report proposes a dual strategy to overcome these challenges: first, by streamlining the RoW process to reduce deployment costs, and second, by leveraging public investments to attract private capital. For every dollar of public funding, private investment could be mobilized at a ratio of up to 1.8:1 in certain areas. This model, combined with targeted subsidies for underserved zones, could rapidly accelerate broadband coverage across KP.

Building a Resilient Digital Future

Beyond policy and economic factors, climate resilience is a growing concern for Pakistan’s digital infrastructure. The country is highly vulnerable to climate-related disasters, such as the devastating floods of 2022, severely damaging telecom networks and disrupting internet services for millions of people. The report stresses the need for a national fiberization plan incorporating climate resilience into infrastructure design. By mapping vulnerable areas and building robust, disaster-proof networks, Pakistan can ensure uninterrupted connectivity even in future crises.

Ultimately, the report offers a roadmap for transforming KP into a model for resilient, inclusive digital connectivity. By investing in infrastructure, reforming regulations, and fostering partnerships between the public and private sectors, Pakistan can bridge the digital divide and unlock new economic opportunities for millions of its citizens. The growth potential is immense, but only if the right steps are taken now to ensure everyone can access the high-speed internet which is critical for participation in the digital economy.