In this Insights at the Edge of Government Analysis Flash, we look at the hyper growth of mobile data 3G/4G subscribers in Pakistan in the last 3 years. If you are wondering why Alibaba is currently in talks to buy a stake in Telenor Bank, PayPal and Alipay are planning their market entry, and other top technology firms like Uber have made Pakistan a priority, the huge growth in mobile data adoption is it. Mobile data subscribers have grown at a CAGR of 135% since 2014.
Pakistan’s e-commerce market is expected to reach $1 billion by 2020. However, a world-class regulatory framework for the digital economy will be critical to position Pakistan as an emerging technology hub, attract further foreign direct investment from global technology leaders, as well as speed Pakistan’s transition to a knowledge-based economy. Key regulatory reforms should include modernized business activity licensing classifications for e-commerce and the sharing economy, world-class consumer and data protection laws, clear policies that guarantee personal data privacy, and a sensible tax regime. A Prime Minister’s Committee for developing the digital economy, formed by representatives from leading global and home grown technology firms, would be an effective way of ensuring Pakistan gets its digital economy regulatory framework right and avoids inconsistent federal and provincial laws.
In this Insights at the Edge of Government Analysis Flash, we look at the impact of the sharing economy on the short-term rental market in the MENA. Based on the number of Airbnb hosts across the region, Turkey, Morocco, and the UAE are the biggest regional markets for online platforms that link property owners with short-term lessees. However, the total number of Airbnb hosts in the entire MENA region is similar in size to the number of Airbnb hosts in London alone. The MENA is a key potential expansion market where sensible sharing economy regulation and partnerships between cities and technology companies can mean significant benefits for local communities and businesses that promote large scale national economic opportunity generation.
In this Insights at the Edge of Government Analysis Flash, we look at the unprecedented level of economic opportunities for MENA youth created by ridesharing companies. In Egypt, Pakistan, and Saudi Arabia alone, ridesharing firms have catalyzed 200,000+ economic opportunities. These opportunities, which have been created over the last 4 years, now exceed the workforce of the largest regional public sector employers as well as the expected job creation impact of many of the region’s in progress mega projects.
In previous blog posts, we have written about how sensible regulation of the sharing economy has the potential to contribute significantly to the MENA’s socio-economic development. Some countries, like Saudi Arabia, are getting sharing economy regulation right, while other MENA countries remain focused on more traditional policies to attract inward foreign direct investment flows for mega projects to create high skill, high wage jobs in knowledge-based industries and protect industry incumbents. Based on this analysis, technology-driven business models in the sharing economy have the potential to be a key tool for MENA governments to complement active labor market policies and large scale national economic opportunity generation strategies.