Impact of Information and Communication Technologies (ICTs) on Economy and Poverty
Brig (Retd) Mohammad Yasin*
With only 12,000 telephones for a population of 34 million at the time of independence, ICTs have come a long way in Pakistan (PTA 2008). Now there are about 125 million subscribers of telephone services. Although some researchers claim that the benefits of enhanced telecommunications connectivity have not been seen across the board, the fact remains that the economic and social benefits of enhanced telecom connectivity and other ICT processes have positively impacted the economy of countries.

According to Robert J. Shapiro and Kevin A. Hassett (2012) that during the transition from  2G to 3G, nearly 1.6 million new jobs were added in USA between 2007 and 2011.. Other economic studies indicate that for every one percent increase in a country’s broadband penetration, GDP per capita increases roughly by ten percent.

Pakistan Telecommunication Authority estimates that in Pakistan, by 2020, the share of telecom employment will be five percent. Telephone revenue will touch more than Rupees 617 billion (PTA 2012). The employment in ICT sector will reach more than two million. Rural areas will have enhanced connectivity because of work being done by the Universal Service Fund which will significantly improve people’s life styles and will reduce poverty. Reaching out to rural areas will reduce digital divide.

Can ICTs on their own reduce poverty? What is ICTs future outlook in Pakistan? What is being done to reduce the digital divide? Are enhanced taxes on ICT services negatively impacting progress in this sector and investments? These are some of issues that will be discussed in this paper. Finally, concrete recommendations will be made for the consideration of policy makers.

References:

Shapiro R. J. and Hassett, K. A. 2012, ‘The Employment Effects Advanced in Internet and Wireless Technology: Evaluating the Transition from 2G to 3G and from 3G to 4G’, New Policy Institute and NDN. Washington, DC.

PTA 2012, ‘Vision 2020’, Pakistan Telecommunication Authority, Islamabad.

PTA 2008, ‘Socio Economic Impact of Mobile Growth and Telecom Indicators Forecasting’, Pakistan Telecom Authority, Islamabad.

* Mohammad Yasin is Senior Advisor SDPI for Capacity Building at the Sustainable Development Policy Institute, Islamabad.