World Bank Advances $249 Million Digital Punjab Programme to Expand Broadband and Cashless Economy
By Tanveer Ahmed :
The World Bank has moved closer to approving a major digital transformation programme for Punjab worth $249 million, aimed at improving broadband infrastructure, modernising government services and accelerating the shift towards a cashless economy across the province.
According to official programme documents prepared ahead of the appraisal stage on May 21, the initiative titled “Connected Punjab” will be jointly financed by the World Bank and the Punjab government. The World Bank plans to provide $70 million, including $68 million under its Program-for-Results financing mechanism and an additional $2 million for technical assistance and institutional support. The Punjab government will contribute the remaining $179 million through provincial funding.
The proposal is expected to be presented before the World Bank’s Board of Directors for final approval on June 26, 2026.
The programme will be implemented through several provincial institutions, including the Punjab Resource Management and Policy Unit, the Punjab Revenue Authority and the Punjab Information Technology Board (PITB). Officials say the project forms part of Punjab’s wider economic and governance reforms under the Punjab Growth Strategy 2026–31 and supports Pakistan’s broader Digital Pakistan agenda.
The World Bank said Pakistan continues to face major gaps in high-speed internet infrastructure despite growth in mobile broadband usage over recent years. Fixed broadband penetration remains low compared with regional countries, while fibre-optic connectivity for mobile towers is still limited, affecting internet quality and reliability.
Official estimates cited in the programme documents show Pakistan currently has around 2.6 million fibre-to-the-home connections nationwide, with nearly half located in Punjab. However, only a small proportion of the country’s mobile towers are connected through fibre networks, creating bottlenecks for faster and more stable digital services.
Under the first phase of the programme, Punjab plans to encourage private investment in broadband infrastructure, particularly in underserved urban areas. Authorities intend to simplify Right-of-Way approvals required for laying fibre-optic cables and introduce a digital approval platform linked with PITB’s e-Biz system and OneMap geospatial platform to reduce delays and improve coordination among departments.
The initiative will also focus heavily on artificial intelligence and digital governance. Provincial authorities plan to establish shared computing infrastructure with GPU-enabled systems that can be used by government departments, universities, researchers and technology startups. Officials say the province will prioritise practical AI applications designed for local governance and public service delivery instead of investing heavily in large foundational AI models.
Another component of the programme aims to improve digital public services through AI-powered citizen platforms, expansion of open-data systems and stronger cybersecurity frameworks. Plans also include development of provincial data protection policies and digital governance standards to address growing concerns around privacy and secure management of citizen information.
The third area of reform centres on financial digitisation and tax documentation. Punjab authorities plan to expand digital payment systems, electronic invoicing and digital point-of-sale integration to reduce dependence on cash transactions and improve tax compliance.
The World Bank noted that Pakistan’s cash-dominated economy continues to create challenges for transparency and economic documentation. It said wider adoption of digital payment systems could help formalise economic activity, support fintech innovation and improve provincial revenue collection.
The programme is also being developed in collaboration with the International Finance Corporation (IFC) under the World Bank Group’s “One WBG” approach, aimed at attracting private-sector investment into digital infrastructure projects.
While assessing the project, the World Bank classified its environmental and social risks as “moderate”. The institution identified several potential concerns, including unequal digital access for low-income populations, resistance from businesses towards digital tax compliance systems, cybersecurity threats and privacy issues linked to centralised citizen data platforms.
The Bank also highlighted environmental concerns associated with electronic waste and the growing energy demands of data centres and advanced computing infrastructure.
Punjab officials believe the programme could play a significant role in modernising the province’s economy by improving connectivity, increasing financial inclusion and strengthening delivery of public services through technology-driven reforms.
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