LocationsDigital Public Infrastructure, Demographic Change, and the Future of Work
By Kalsoom Lakhani | Co-founder, i2i Ventures
Digital Public Infrastructure (DPI) has become one of the most significant drivers of digital transformation in emerging markets. In Pakistan, where a large share of the population is young and digitally native, DPI must be leveraged to equip people with the skills, opportunities, and systems needed to navigate the evolving future of work.
Digital Public Infrastructure, or DPI, has become one of the most significant levers for digital transformation in emerging markets. DPI refers to foundational digital frameworks–instant payment systems, digital identity, and frictionless data sharing–that can enable governments, businesses, and individuals to engage and transact with one another more effectively, efficiently and transparently at scale.
In Pakistan, where more than 64 percent of the population is under the age of 30, the country stands at a critical demographic inflection point. This large, digitally native youth population has immense potential, but it must be equipped with the skills, opportunities, and systems needed to navigate an evolving future of work. As the country rolls out its own DPI initiative, there is an opportunity to study other comparable markets and ensure this intervention meets Pakistan’s population where it is, and is thoughtful and inclusive.
In markets like India and Brazil, the launch of their countries’ DPI has been a growth driver for their economies, unlocking digital payments at scale, and enabling startups to build on these rails faster and cheaper and with less friction. Pix, Brazil’s instant payment system, launched in 2020 and has since been adopted by over 153 million individuals and supported by over 900 financial institutions. The launch of Pix and the growth of Brazil’s DPI is a key reason Brazil’s fintech sector is the leading hub in Latin America. Similarly, India’s Unified Payment Interface (UPI), which launched in 2016, revolutionized the country’s financial landscape, with over 15 billion monthly transactions facilitated by late 2024. This was further accelerated by Aadhaar, India’s digital ID system, which reduced the cost of customer KYC1 from US$10-12 to ~ US$0.20, making it easier for financial services to scale to millions more users across India, including previously underserved populations.
The launch of Pakistan’s own Digital Public Infrastructure comes at an important point in the country’s journey. Pakistan’s digital payment system RAAST launched in phases beginning in 2021, and the final phase (merchant payments) launched in 2023. According to Pakistan’s State Bank (SBP) Financial Stability Review for 2025, RAAST has already processed nearly PKR 50 trillion across roughly 2 billion transactions, with around 48 million users. As of December 2025, 53 financial institutions across the country are integrated into the system. At the same time, Pakistan’s smartphone penetration is 62 percent, and the country’s recently successful mobile spectrum auction is also significant because it will effectively allow for the rollout of 5G and better connectivity overall across the country.
These developments are timed well. Increased and higher quality connectivity allows more users to transact more easily and effectively on RAAST’s rails. Companies and startups building off this infrastructure can scale their offerings quicker and to more users across the country. As a result, Pakistan becomes a more exciting market opportunity for international investors, companies and stakeholders.
While these are the most utopian outcomes, there are potential challenges that policymakers and key stakeholders must keep in mind if we want DPI’s impact to be as inclusive as possible. First, as we’ve seen in the Indian and Brazilian case studies, the scale of instant transactions also led to an increase in frauds and scams, which then could erode consumer confidence and trust in the system. In both those markets, enacting strong consumer regulatory protections early on was key in addressing these challenges. For example, the Reserve Bank of India (RBI) established a zero-liability policy for unauthorized transactions and mandatory two-factor authentication requirements. This not only helped address potential fraud in the system, but reinforced consumer trust in UPI and its usage, which was key in its widespread adoption.
Pakistan must enact similar regulatory protections and closely follow the United Nations (UN) Principles for Responsible Digital Payments, which has been endorsed by over 50 organizations globally and defines the safeguards for digital payment ecosystems. According to the Better than Cash Alliance, Pakistan has an opportunity to not only promote digital payments but ensure that its users feel protected and empowered in this process. Consumer education is key in DPI’s rollout and more can be done to not only market RAAST more effectively among the population, but ensure this awareness is as inclusive as possible.
As we’ve seen in other markets, the rollout of DPI doesn’t inevitably lead to inclusion. In fact, without intentional design, this infrastructure can benefit users who were already included, rather than bringing everyone into the fold. As noted earlier, Pakistan has one of the youngest populations in the world, and this demographic is digitally curious, mobile-first, and aspirational. The country’s DPI framework should be thoughtful of how it engages with these young users, many of whom are transacting and engaging in work across borders, often via virtual networks like the blockchain. The youth bulge accounts for why Pakistan routinely ranks among the top three to five countries globally for freelance work, and ensuring the frictionless rails for how they not only get paid but can subsequently grow this work is key. This will lead to long term economic mobility and development, and also a young workforce that can compete in the evolving digital age.
While smartphone penetration is 62 percent, the Global Findex 2025 data shows significant gender disparity in mobile phone ownership in Pakistan, particularly with reference to smartphone access. Given that smartphones are a gateway to receiving digital and financial services, addressing this initial disparity is important if we want the impact of DPI to be more inclusive in the long term. Not only can more be done to fix this ownership gap, but startups and players building on this infrastructure should be thoughtful in how they design products and services that are more inclusive of gender, income, class and more in Pakistan. It’s not just about getting more phones in people’s hands, but also training users on how to be digitally literate, and foster trust in the system overall.
This isn’t a simple process, and engaging traditionally excluded groups requires thoughtful interventions that can take time. This should be done not just for the sake of inclusion, but because there’s a clear return on investment (ROI) in building offerings that can be accessed by everyone, not just one stratum of the population.
Pakistan is at a real precipice right now. The country’s growing, young, digitally native population presents a real opportunity to design intentional interventions, to engage thoughtfully, and to prepare Pakistan for the future. There is benefit in learning from other markets’ success stories and cautionary tales if we want to see a Digital Pakistan that is designed for all, not just for some.
1. Know Your Client (KYC) is a vital standard in investment and financial services, designed to verify client identities and assess financial profiles.