Report Finds Pakistan’s GDP Grows with Every 1% Increase in Mobile Phone Usage

Mobile connectivity has become a major driver of Pakistan’s economic growth with measurable impact on GDP per capita, according to a Frontier Economics report for VEON.

The study finds that a 1 percent increase in mobile penetration leads to a 0.115 percentage point rise in GDP per capita growth, based on updated cross-country data.

Deputy Chief Financial Officer and Head of Tax at JazzWorld Khayyam Mushir said,

He added that the report demonstrates how a more balanced taxation framework could deliver stronger long-term economic and fiscal outcomes. “While there may be some short-term revenue impact, greater digital inclusion can expand economic activity, raise per capita incomes, and ultimately generate significantly higher tax revenues for the government over time,” Mushir said.

This effect is stronger than earlier global estimates, reflecting the increasing role of mobile networks in digital economies.

Pakistan is described as a “mobile-first economy,” where communication, payments, and access to services increasingly depend on mobile infrastructure.

Mobile connectivity reduces transaction costs, improves information flow, and boosts productivity, especially for small businesses and rural populations.

It also links mobile usage to economic formalisation, as digital transactions become easier to track and tax.

With only 18 percent of adults holding bank accounts in 2024, the study stresses that mobile-based financial services are critical for inclusion and growth.

The report concludes that heavy taxation of mobile services may slow down long-term economic gains.