World Bank flags slow progress, implementation gaps in $69.16m digital economy project

The World Bank has raised concerns over slow fund utilisation and several implementation shortcomings in Pakistan’s $69.16 million Digital Economy Enhancement Project, with only $8.36 million, or 12.09 percent, disbursed so far.

 

According to the World Bank’s latest project assessment, around $60.80 million remains undisbursed. The project was approved in March 2024 and became effective in May 2024, with completion scheduled for July 31, 2028.

 

Despite the slow pace of financial disbursement, the World Bank rated the project’s overall implementation and progress toward its development objectives as “Moderately Satisfactory”, while the overall risk level was assessed as “Moderate.”

 

The project is designed to strengthen the government’s ability to deliver digitally enabled public services to citizens and businesses. Its major components include improving digital economy, governance and service-delivery capabilities, developing the Pakistan Business Portal, and supporting project management.

 

The World Bank noted that Pakistan has made progress in building digital public infrastructure. NADRA has issued 2.3 million Digital IDs, while approximately 6.5 million transactions have been processed through the National Data Exchange Layer.

 

The PakID Vault currently supports 11 types of verifiable credentials, while the Enterprise Architecture Framework has been completed and the Data Governance Policy has been placed before the public for consultation.

 

However, the World Bank said the Ministry of Information Technology and Telecommunication (MoITT) needs to develop a time-bound strategy for prioritising and onboarding digital services in coordination with the Pakistan Digital Authority, federal and provincial governments.

 

The strategy is expected to cover the next six months, one year and two years.

 

The ministry has also been asked to publish the Enterprise Architecture Framework with an adoption roadmap, formally implement the Data Governance Policy and Interoperability Framework, and complete the feasibility study for the National Fiberisation Plan.

 

Several performance indicators remain significantly below their targets. Transactions processed through the National Data Exchange Layer reached 650,000 in August 2026, compared with a closing target of 13.333 million.

 

Only six entities have been integrated into the national data exchange system so far, against a target of 40 by November 2027. Private-sector participation is even more limited, with just one private-sector entity integrated compared with a target of 13.

 

The digital vault currently accommodates 11 verifiable credentials, against a target of 40, while 18 services are available through the national citizen services portal against a target of 20.

 

The Pakistan Business Portal has yet to record any transactions involving Registration, Licenses, Certificates and Other (RLCOs), despite a target of 4,000 annual transactions by November 2027. Online B2G payments and RLCO services also remain at zero, compared with a target of 50 percent.

 

The World Bank also highlighted a gender gap in the use of digital services. Women accounted for only 9.2 percent of digitally enabled service users, well below the project’s closing target of 30 percent. Data on youth participation was not available at the time of the assessment.

 

The findings underline the need for faster implementation, greater institutional coordination and broader adoption of Pakistan’s digital public infrastructure to ensure the project meets its targets before the 2028 closing date.