Rise of Asia and Lessons for Pakistan

Digital Transformation through Public-Private Partnership Models

nasiraijaz October 19, 2025

0 54 10 minutes read

For us in Pakistan, digital transformation is no longer a wish; it is a strong want and essential survival strategy

By Raphic Burdo

Digital transformation is reshaping the very foundations of governance, economy, and society. It is not merely the introduction of technology into public service. It is the reinvention of how citizens, governments, and businesses interact. In this transformation, Public–Private Partnerships (PPPs) have emerged as a cornerstone of progress, serving as bridges between innovation and inclusion, digital ambitions and technological execution.

For us in Pakistan, digital transformation is no longer a wish; it is a strong want and essential survival strategy. The demographic youth bulge, expanding connectivity, and rising tech entrepreneurship offer an unprecedented opportunity for our south Asian nation. We cannot meet the speed, scale, and sophistication demanded by new era digital economy with the government capacity alone. Partnerships with private technology firms, startups, academia, and development organizations are the unavoidable accelerators that can make digital transformation real ñ, here and now.

The digital age has totally changed the ways of governance. Governments have become much more than regulators and service providers. Public institutions have become platform builders and ecosystem enablers. Around the world, the most successful digital states have embraced models wherein government organizations lay the foundational digital infrastructure, and private innovators become partners to build value upon it.

Let us take the case of Singapore in Asia first. The state pioneered the model through its Smart Nation initiative, where the government’s GovTech agency collaborates with hundreds of private partners to build digital identity systems, open data platforms, and AI-powered city management tools.

Another case in point is Japan. Though traditionally cautious in digital governance, Government of Japan created its Digital Agency in 2021 to streamline citizen services and coordinate Public Private Partnerships (PPPs) for a “Public-Private Digital Platform for a Resilient Society.”

Similarly, Malaysia’s MyDIGITAL strategy, which is led by the Malaysia Digital Economy Corporation (MDEC), brings together ministries, telecom companies, and tech firms to achieve substantial contribution from the digital economy to the nation’s GDP.

One more example in Asia is that of highly populous South East Asian country Indonesia. Their dynamic GovTech collaborations such as the PeduliLindungi app for pandemic response and smart city partnerships under “100 Smart Cities” show how private platforms can be effectively and efficiently aligned with national governance priorities.

In each of the given examples, the government acted as a conductor which orchestrated diverse actors toward a shared digital symphony.

In Pakistan we have a great deal to learn from its Asian comity of nations. We ought to evolve towards this enabling model of functioning. It is time we migrated from project-by-project digitization to systemic, ecosystem-wide transformation in partnership with private sector.

Public–Private Partnerships Matters

There is near consensus that Digital transformation requires three characteristics of speed, scale, and sophistication that unenviably the public sector in Pakistan and everywhere else has rarely held in their entirety. Speed is sine qua non here because the technology landscape shifts faster than bureaucratic processes of public sector. Scale is required because serving nearly 250 million citizens, majority of which is under 30 years of age, requires networks, data centers and logistics are in all practicability beyond the capabilities of governmental entities alone. Moreover, the advanced technologies such as AI, cybersecurity, quantum computing, block chain and data analytics demand specialized expertise require Sophistication which is seen less in state run departments but are found amply in private and academic sectors.

It is pertinent to say, the Public–private partnerships directly address these challenges by enabling government institutions to leverage private innovation and capital, co-create citizen-centric solutions, and ensure that the benefits of digital progress reach citizens fast at affordable costs. The arrangements win-win for private firms as well. For them PPPs open for them stable markets, get them policy support, and bring to them reputational capital.

At their best, PPPs transform governments into platforms of collaboration where innovation thrives, risks are shared, and public value are multiplied manifold.

Asian Models of Digital Partnerships

There have been diverse models of digital collaboration throughout Asia. All the regional frameworks of partnerships show strategic partnerships have unquestionable potential to translate policy into impact. Let us highlight a few outstanding models of collaboration to drive more clearly our point of view home.

Singapore

Singapore’s GovTech agency operates as a hybrid organization. It is part government and part innovation hub. It has co-developed digital infrastructure like SingPass (digital ID) and MyInfo (data-sharing platform) in collaboration with private technology companies. These platforms have now become the backbone of smart services across banking, healthcare, and mobility sectors in Singapore wich is reflective of deep trust between state institutions and tech sector firms.

Japan

The Digital Agency of Japan has been launched in direct collaboration with leading corporations and universities. Its aim is to not only modernize government IT systems but also promote public–private data-sharing frameworks. Japanese vision of a “Public–Private Digital Platform for a Resilient Society” emphasizes trust, security, and long-term sustainability. This is a key lesson for evolving digital governance in Pakistan.

Malaysia

MyDIGITAL is the Digital Economy Blueprint of Malaysia. It provides a holistic framework for partnerships between government, industry, and academia. Through MDEC, Malaysia has attracted foreign investment in cloud computing, AI, and e-commerce, while launching initiatives like the Digital Free Trade Zone in collaboration with Alibaba. Their emphasis is on creating digital ecosystems rather than isolated projects.

Indonesia

In Indonesia government collaborated with major tech players such as Gojek, Tokopedia, and Telkom Indonesia to integrate e-payments and logistics into public services. During COVID-19, the PeduliLindungi app, developed jointly by government and private developers, became the digital backbone for health tracking, illustrating how agility and trust can yield national-scale solutions.

Vietnam

The Digital Transformation Program 2025 of Vietnam led by its Ministry of Information and Communications has mobilized PPPs to digitize governance and industry. Partnerships with FPT Corporation and Viettel have produced e-government portals, smart cities, and AI-enabled agricultural systems. Vietnamese model stresses upon inclusive digitization whereby small enterprises and rural citizens are linked through shared platforms.

Hong Kong

Smart City Blueprint 2.0 of Hong Kong has created a Data Studio which is a shared platform where government data is made available to startups and researchers. This PPP has generated innovative transport, health, and energy solutions. Hong Kong has turned transparency into an innovation multiplier by institutionalizing data-sharing.

Thailand

In Thailand, the Digital Government Agency (DGA) has partnered with Information Technology companies to digitize over 300 citizen services through a unified portal, “govchannel.go.th”. Besides, joint investment projects with Thailand private sector in cloud infrastructure and cybersecurity has ensured interoperability across agencies. This approach highly relevant for e-government systems in Pakistan where these are very fragmented.

Bangladesh

Near home, our former eastern part, Bangladesh through its Aspire to Innovate (a2i) program has exemplified PPP-driven inclusiveness. The a2i has digitized thousands of public services through one-stop digital centers, enabling 300 million transactions annually. This has not been done by Bangladesh Prime Minister’s Office singlehandedly by for this the government partnered with UNDP, technology companies, and local innovators. Bangladesh’s a2i is a clear demonstration of capability of PPPs to bridge rural and gender divides.

Digital Nation Pakistan

Pakistan’s digital landscape has by no means less than promising beginnings. The National Database and Registration Authority (NADRA) is already one of South Asia’s most sophisticated digital identity systems. It serves as the backbone for social protection programs, elections, and financial inclusion. The State Bank’s Raast platform, developed with commercial banks and fintechs, has also revolutionized instant payments. The National Information Technology Board (NITB), Ignite, Pakistan Software Export Board (PSEB, Telecom Foundation, Special Communications Organization (SCO) and National Telecommunication Company (NTC), under the Ministry of Information Technology and Telecommunication (MoITT) have initiated various digital governance, transformation, incubation, and skill development projects. Pakistan Digital Authority (PDA) has been rolled out to translate Digital Nation Pakistan vision into reality by laying out National Digital Master Plan with all provinces onboard in the true spirit of whole-of-government approach. It is to be seen if PDA goes the tried and tested PPP mode of digital transformation or keeps the tabs on phenomenal task ahead of it to its own. The evidence is obvious. Asia has shown the power of partnerships.

It is important to highlight that the digital ecosystem in Pakistan is hugely fragmented. Not only that it lacks a unified framework for coordination but shared infrastructure is also missing. It is to be seen how far the concept of Digital Nation Pakistan piloted through Digital Economy Enhancement Project (DEEP) and its Pakistan Stack, promotes trust-based collaboration among public sector organizations, private firms, academia and startups .

Read: How Can Public-Private Partnerships Accelerate Digital Transformation in Underserved Areas

It is opportune to emphasize and reiterate, Pakistan’s public sector has to take leave of a project-by-project mindset towards an ecosystem-enabling approach. From practices of our Asian peers, three lessons stand out for Pakistan to learn, customize and adopt.

First and foremost, Pakistan needs to institutionalize partnership. Just like Singapore’s GovTech and Malaysia’s MDEC, Pakistan must create a permanent institutional mechanism to manage digital PPPs. It is not yet clear whether PDA fill this gap or DEEP is the vehicle to achieve it. To me, NITB is most potent horse upon which government shall bet.

Secondly, we in Pakistan must now empower innovation sandboxes. Indonesia and Vietnam have co-creation labs, Pakistan can establish “GovTech Sandboxes”. By this we shall allow startups to test public-service solutions under real-world conditions. Ignites AI Wrapper competitions and Hackathons are right moves but too few for the giant nation. It requires to put more meat into it.

Thirdly and finally, Pakistan’s public sector ought to align incentives for broader inclusion. The a2i of Bangladesh has sufficiently proved that PPPs can expand access for marginalized citizens beyond only urban elites. Keeping in view its demographic diversity, this is the ethos that Pakistan must embed in its smart digital and transformational initiatives under Digital Nation Pakistan from the very outset.

Framework for Digital PPPs in Pakistan

Keeping in view its unique characteristics, Pakistan’s national digital partnerships ecosystem may be based on six interdependent pillars:

Unified Policy Vision:

The Digital Pakistan Policy or Plan under Digital National Pakistan Act 2025 should explicitly recognize PPPs as engines of digital transformation. It shall mandatorily define clear principles for digital infrastructure, data governance, and cloud adoption.

Institutional Coordination:

The National Digital Commission (NDC), under the Prime Minister of Pakistan with all Chief Ministers and key federal ministries and entities as its members, could serve as the apex coordinating body, aligning projects across ministries, provinces, and private partners. This is similar to Malaysia’s Digital Economy Council.

Innovation Governance:

Government of Pakistan’s relevant ministries and departments at federal and provincial levels should establish GovTech Innovation Labs, inviting startups, universities, and development partners to co-design and pilot digital solutions. By doing tbis we would replicating Thailand’s DGA and Vietnam’s sandbox models which are success stories in their own right.

Financing Mechanisms:

Digital Nation Pakistan Act of 2025 provides for Digital Nation Fund. It has, as we speak, yet to see the light of the day. Digital Transformation Fund with whatever name and nomenclature shall blend funding from public allocations, venture capital, and development finance. Such blended finance would more likely de-risk investments and encourage private firms to participate in long-term infrastructure and service projects.

Capacity and Talent:

Human capital is the lifeblood of digital transformation. Pakistan must invest in training public officials, technologists, and project managers in digital leadership, data ethics, and agile delivery. We have amply seen its proven significant in. Japanese and Singaporean cases of digital transformation.

Ethical and Inclusive Design:

At no juncture shall we forget that every partnership that Pakistani institutions build should uphold principles of data privacy, accessibility, and gender inclusion. Pakistan’s digital future must be high-tech simultaneously being human-centric.

To Be or Not to Be

What we are suggesting and what Pakistan aspires towards is tranformational but is not without challenges. We cannot lose sight of the fact that in spite of the great potential, Pakistan faces real challenges that have constrained PPP effectiveness in other spheres in the past. There has been trusr deficit. Historically government and private sector have been suspicious of each other. This state of affairs discourages collaboration. There is, however, hope. Transparent procurement processes and performance-based contractual obligations will remove room for misreadings and would likely restore confidence.

In addition to that fragmented governance is a larger challenge. Existence of multiple ministries working in their isolated ivory towers leads to duplication and wastage already scarce resources. Unity of command and clear responsibility matrix with institutional convergence under a central authority would be critical. This is more important for Data Protection and Cybersecurity. It has been seen in the past that in the event of data breaches various entities start blame game. Without strong legal frameworks, citizens may resist digital systems. Pakistan must fast-track its Personal Data Protection Law and national cybersecurity strategy. Without these two much would remain wanting.

For government organizations procurement rigidity is probably one of the most daunting challenge. Current public procurement rules are designed for tangible goods, not agile software services. Regulatory reforms are needed to allow outcome-based, innovation-friendly contracting. Without these even PPPs will not work winders. Last but not the least is the challenge of capacity. It should be clear by now to the top echlons that technical and project management skills within ministries and their departments remain limited. Continuous professional development, as adopted by Malaysia’s Digital Academy, can potentially bridge this gap. Addressing the stated barriers is not bureaucratic housekeeping. It is the precondition for digital transformation towards achieving the vision of Digital Nation. Pakistan in its due time.

United We Stand

It is not rocket to reckon. Digital transformation is not a solo endeavor. It is a team sport that involves government, industry, academia, and citizens. Pakistan’s public sector must move from an ownership mindset of a seth to a partnership mindset, where innovation is co-created, risks are shared, and citizens are treated as co-designers of public services. Roles are crystal clear. The state provides legitimacy, policy direction, and inclusivity. The private sector brings capital, speed, and innovation. Academia and startups supply ideas and talent. Citizens, as key characters in framework, contribute through active participation and continuous feedback. This model mirrors the successful Asian approach based on collaboration as the core strategy of competitiveness.

As Pakistan strengthens its Digital Public Infrastructure (DPI) through Raast, NADRA, and emerging cloud frameworks, it can open new frontiers in AI, blockchain, and e-governance by institutionalizing PPPs as the default mode of delivery. The new era may not be defined by the nations that digitize the fastest, but by those that collaborate the deepest. Across Asia, countries that have mastered partnership are translating digital ambition into human impact. Pakistan has the vision, the talent, and the institutions to join their ranks. What it needs now is an unwavering commitment to partnerships. There has to be recognition that the state’s power lies not in control but in collaboration. If Pakistan can align its public purpose with private innovation, digital transformation will not remain a promise. It will become a lived reality of efficient governance, inclusive growth, and empowered citizenship.