If Pakistan is to find solutions to the many problems plaguing its economy and start generating jobs and income for the 2m young people joining its workforce every year, these seem most likely to come from the country’s nascent technology sector.
Recent deals by Chinese ecommerce group Alibaba to invest in Pakistan, combined with the promise of local start-ups, point to the potential for the country to harness innovation to address its deep-seated challenges. Areas where tech investment and innovation could make a real difference range from corruption and income inequality to financial inclusion and access to water.
Pakistan’s finances are in dire shape. Its current account deficit has widened sharply and its dwindling foreign exchange reserves are insufficient to even cover the cost of imports and foreign debt repayments for the rest of this year. The cash-strapped government of Imran Khan, the former star cricketer who was elected prime minister in July, has approached the IMF for a 13th bailout in 28 years. That comes against a backdrop of mounting concerns about whether Pakistan will ever be able to repay China for the $62bn it is receiving over five years as part of the China Pakistan Economic Corridor.