Pakistan’s digital lag: lessons from Singapore and India

LAHORE: Artificial intelligence is one of the most cost-effective tools for improving governance and transforming an economy, but it requires strong political and public service leadership, a commitment to institutional learning and a strategic approach to public-private collaboration -- elements that are largely absent in Pakistan.

Singapore is widely regarded as a success story in leveraging technology for economic transformation. The committed leadership of the Singaporean government has played a crucial role in shaping the country’s digital strategy, ensuring alignment across different agencies and private sector stakeholders. In contrast, Pakistan lags far behind due to weak political commitment, governance gaps and bureaucratic inefficiencies. Unlike Singapore’s centralised and consistent leadership in digital transformation, Pakistan’s efforts have been fragmented, with frequent policy shifts and a lack of long-term vision. Political instability further hampers sustained progress in e-governance.

Singapore has continuously adapted its policies and systems based on past experiences, fostering close collaboration between the government and private sector to drive innovation. It has built a world-class digital infrastructure, ensuring widespread connectivity and access to cutting-edge technologies. In Pakistan, policies are often reactive rather than proactive, with limited mechanisms for continuous institutional learning. While the private sector is active in digital services such as fintech and telecoms, collaboration with the government remains inconsistent.

Singapore’s planners made early efforts to enhance digital skills among the population, ensuring that individuals and businesses could effectively leverage new technologies. Strong regulations around cybersecurity, data protection and digital governance have fostered trust and stability in the country’s digital ecosystem. The Singaporean government sets clear objectives, tracks performance, and ensures accountability in its digital transformation initiatives.

While mobile penetration in Pakistan is high, broadband access -- especially in rural areas -- remains poor. The National Database and Registration Authority (NADRA) and the Federal Board of Revenue (FBR) have digitised some services, but a seamless, integrated e-governance model is lacking. A significant portion of the population lacks digital literacy, limiting the effectiveness of e-governance initiatives. Although initiatives like the ‘Digital Pakistan’ campaign exist, they face implementation challenges. Pakistan also lacks robust data protection laws comparable to Singapore’s Personal Data Protection Act (PDPA), and cybersecurity threats and digital fraud remain concerns due to weak enforcement mechanisms.

Singapore’s tax system is a prime example of its effective use of technology. The Inland Revenue Authority of Singapore (IRAS) uses pre-filled tax returns based on available financial data, reducing the burden on taxpayers. Individuals typically receive their final tax assessment and only need to verify it, making tax compliance highly efficient. The high level of trust in institutions, combined with strict enforcement, means that taxpayers rarely challenge these assessments. Singapore’s success demonstrates how a country can harness technology to enhance governance, improve economic efficiency, and create a globally competitive digital economy.

By contrast, while Pakistan’s FBR has introduced online tax filing, compliance remains low due to a weak tax culture and a trust deficit in the tax system. Unlike Singapore, where tax assessments are automated and widely accepted, Pakistan’s tax system remains heavily reliant on manual processes and is prone to corruption.

Among South Asian countries, India is the closest to Singapore in terms of digital transformation, though it still has a long way to go. Its strengths include Aadhaar, the national digital ID system, which covers over a billion people and enables digital payments, direct benefit transfers, and tax filings. Its Unified Payments Interface (UPI) is a world-class real-time digital payment system. The Goods and Services Tax (GST) system has improved tax compliance, and e-filing of taxes is widespread. India is also a global IT powerhouse, driving innovations in e-governance and digital services.

However, India faces challenges such as bureaucratic inefficiencies, corruption, and a vast, diverse population that makes uniform digital adoption difficult. Its cybersecurity and data privacy laws are still evolving. Unlike Singapore, where digital governance is streamlined, India faces coordination challenges between central and state governments.

Pakistan can learn from both Singapore and India by adopting a long-term, centralised digital strategy, improving public-private collaboration and investing in digital literacy and cybersecurity. Without decisive reforms, the country risks falling further behind in the global digital economy.