Public sector institutions in Pakistan are now recognizing the potential of emerging technologies and research and development (R&D) to achieve effective governance. Approximately 15-20% public sector organizations are IT based, with significant room for expansion and modernization. The once bricky service centers and paper-based processes are gradually being transformed with digitization, automation, and data-driven decision-making. This transformation is critical not only for administrative efficiency but also for creating transparency, accountability, and citizen-centric service delivery.
Over the years, Pakistan has made slow but steady progress in digital transformation within the public sector. Initiatives such as NADRA’s digital identity system, online tax filing through the Federal Board of Revenue (FBR), and the digitization of land records in Punjab and Sindh illustrate this shift. Additionally, e-governance platforms and mobile applications are being introduced to provide accessible public services.
Despite these advancements, the pace of development remains gradual due to systemic challenges such as limited infrastructure, lack of technical expertise, and bureaucratic inertia. However, targeted efforts like the Digital Pakistan Initiative aim to bridge these gaps by fostering a technology-driven culture in governance and service delivery.
In Pakistan, budget allocation toward IT and digital transformation in the public sector remains relatively low. For instance, the federal budget for IT in recent years has ranged between 0.2% and 0.5% of the total annual budget. This allocation is significantly lower than in many developed countries, where IT spending constitutes a higher percentage of government budgets. For example, the United States allocates approximately 3.5% of its federal budget to IT, while countries like Singapore invest over 4% in smart governance initiatives.
Globally, organizations dedicate around 4-10% of their total budgets to IT, depending on the sector and priority. Public sector organizations in developed nations typically invest 6-8%, reflecting the strategic importance of technology in modern governance. In comparison, Pakistan’s public sector needs to significantly increase its IT spending to remain competitive and deliver efficient services.
New technologies are profoundly changing operations in the public sector. For example, blockchain ensures record management transparency and security, while IoT is widely applied in environmental monitoring and traffic management. Machine learning and AI support data-driven policymaking and real-time public assistance, and 5G connectivity promises faster, more reliable access to digital services, improving everything from emergency response to telemedicine. When these technologies are well-integrated, they can lead to proactive, streamlined governance.
Mobile access is another crucial aspect of digital transformation. Expanding internet access to rural areas is essential for ensuring inclusion and bridging the digital divide. Strong infrastructure, data analytics, cyber security, and interoperability across departments are key to achieving this shift.
Public sector institutions in Pakistan face numerous challenges, including limited funding for R&D, skill shortages, and resistance to change. Budgetary pressures often restrict the ability to allocate adequate resources for technological advancements. However, addressing these issues through targeted policies, training programs, and collaborative efforts can unlock significant opportunities.
Globally, governments are embracing technology and R&D to modernize service delivery. Estonia, for instance, is renowned for its e-Residency and digital governance model, with digital identities enabling online voting, tax filings, and medical record access. Singapore’s Smart Nation initiative has digitized public services and increased citizen engagement, with AI-driven tools enhancing healthcare services. Similarly, the United Arab Emirates (UAE) has invested heavily in AI and IoT, using smart city technology to enhance security and efficiency within Dubai.
To accelerate digital transformation in Pakistan’s public sector, the government should take several key steps. Increasing budget allocation to IT and digital initiatives to at least 2-3% of the national budget is crucial, aligning with global standards. Capacity building programs should be introduced to train public sector employees in adopting and managing digital tools effectively. Collaborating with academia, private firms, and international organizations can foster innovation and bring in fresh perspectives and best practices. Citizen-centric design must be prioritized to develop user-friendly digital platforms that cater to the diverse needs of citizens, ensuring accessibility and inclusivity. Additionally, focused investments in R&D, particularly in areas such as renewable energy, smart infrastructure, and cyber security, are essential to support sustainable development and address national needs.
Investing in IT and embracing emerging technologies is no longer optional but a necessity for modern governance. By strengthening accountability, fostering innovation, and increasing IT spending, Pakistan can position its public sector institutions as drivers of progress. The journey toward digital transformation is gradual, but with a strategic approach, the country can build a transparent, efficient, and inclusive public sector that meets the demands of the digital age.
