The growth of any economy in the current time is only possible when it adopts the digital economy. For Pakistan, mobile phones play the heart of the digital economy. One might wonder what can be the connection between mobile phones and national growth. Well, mobile phones are particularly important in the digital world, because they ensure digital connectivity and financial inclusion. The usage of mobile phones is increasing every year and it has contributed significantly to the growth of the national economy.
Mobile Ecosystem Is Supporting National Growth
Mobile phones have changed the way businesses, individuals and other state bodies function. The mobile ecosystem plays a critical role in GDP growth, tax generation, job creation and increasing productivity in different sectors. According to a report by the International Telecommunication Union, a mere 10% increase in the penetration of mobile broadband in the Asia Pacific region leads to a rise in GDP by 1.5%. Back in 2018, in Pakistan, the total economic contribution made by the mobile ecosystem was approximately $16.7 billion which was equivalent to 5.4% of the GDP of the country. It is predicted that by 2023, the economic contribution from the mobile industry will be $24 billion and this will account for 6.6% of the GDP of the country.
The mobile ecosystem further employs people both in a direct and indirect manner in the formal and informal sectors. The mobile ecosystem along with internet connectivity plays an important role in the development of a country, especially in this digital world. However, while using the internet, it is important to ensure digital safety. Safety during online activity can be managed by hiding the digital footprint by hiding the IP address. You can find the IP address of your device on What Is My IP. The revenue contributed by the mobile ecosystem of Pakistan is in billions when it comes to public sector revenue. Not only is the mobile ecosystem boosting the financial aspect of the national growth but also is handling the developmental aspect. For instance, the mobile industry plays an important role in realizing the United Nations Sustainable Development Goals and further, meeting the different socioeconomic targets of both Pakistan Vision 2025 and the Digital Pakistan policy. Currently, mobile phones are at the core of the industrial development of Pakistan.
How The Mobile Ecosystem Is Further Leading To Development?
Pakistan consists of younger demography and this creates a huge potential for the country to absorb the younger generation into the labour force. However, before absorbing the younger generation in the labour force, it is important to further develop their skills. Mobile devices play a crucial role in employing the younger demographic. The mobile ecosystem is contributing to improving the literacy rate of the country. During the COVID-19 pandemic, the telecom industry played an important role in ensuring that the students are able to continue their education remotely. Currently, in any country, mobile phones will play a critical role in creating a digital economy. The six elements of a digital economy are connectivity, digital identity, platforms, digital citizenship, digital lifestyle and digital commerce. The broadband connection is still something that many countries are working on but mobile phones are something that is easily affordable by the common people. Therefore, it is not surprising that mobile phones are important to support the digital economy in any country. In Pakistan, affordability, availability and content barriers are the real drivers of the mobile usage gap.
Mobile phones play an active role in improving social inclusion, communication, productivity and economic activity in different sectors. The mobile ecosystem takes care of the supply side of the economy. Growth in the consumption of mobile data transforms the way businesses and consumers work; this then indirectly results in the economic growth of the country. The increased use of mobile devices always had a positive effect on the growth of the GDP of the country. The mobile ecosystem further improves productivity in developing markets. Plenty of studies have indicated a direct link between mobile penetration and economic growth. Also, the mobile ecosystem improves the productivity of the workers too which in turn; improves the productivity of the business. The same holds true for the role of the mobile ecosystem in the economic growth of Pakistan. Mobile phones play both a direct and indirect role in the economic growth of any country.