As technology ecosystems and smart cities grow around the world, there is a pressing need to ensure that governance systems are agile enough to meet the standards of the digital age. While the private sector players have taken major strides to utilise emerging technologies for innovation, the public sector has been slow to catch up to meet the growing demand for better public services.

In Pakistan, the tech startup ecosystem has grown significantly since 2012. According to a study by Invest2Innovate in 2019, there were 24 major incubators and accelerators and nearly 20 formal investors in the ecosystem.

While the recent success of startups like Airlift, Zameen.com, and Bykea validates the demand for digital services in the country, the question remains: who is innovating for the public sector to ensure equitable access, inclusive growth, transparency and accountability when it comes to service delivery.

Citizens now expect the government to deliver more responsive, accessible, and transparent services that are at least close to, if not at par with, the digital standards that the private sector has set in recent years. A failure to do so will not only erode trust in the public sector but also lead to declining citizen satisfaction that will, ultimately, have economic and social repercussions.

Among the many emerging enterprise technologies, such as edu-tech and fin-tech, there is still limited discussion around gov-tech startups in Pakistan. According to the 2020 rankings of the UN’s E-Government Survey, Pakistan comes at 153 out of the 193 surveyed member states. The country has demonstrated progress from its 159th ranking in 2016. But it still ranks the lowest when compared to other low middle-income countries in South Asia.

Hence, it is crucial for the government to undergo digital transformation through utilisation of emerging technologies for improved service delivery. What better way to do this than initiating startups that are geared towards governments as the primary beneficiary of their services?

GovTech is a term used to cover a broad range of topics related to government and technology, including policies that are focused on data and innovation in the public sector. With this focus on digitising governments, there has been a rise in governance-focused digital startups that have the government as the primary beneficiary of their services.

As the public sector covers a broad range of services, the gov-tech startups are diverse in their offerings — from welfare and justice to defence and healthcare.

If one considers online and offline citizen interactions with the public sector, there is an opportunity to innovate every step of the way. Does the government have the appetite to spearhead the growth of this new ecosystem?

For example, gov-tech startup in Poland is based in the prime minister’s office and working to make the procurement process more efficient and agile. Another US-based startup is working to develop websites and other online tools, such as payment gateways, meeting tools, service centres, etc, for local governments.

In fact, by 2025, the global valuation of gov-tech market is projected to reach $400 billion. The UK gov-tech market is estimated to outgrow even fin-tech and prop-tech in its worth. Hence, gov-tech ecosystems are emerging around the world and consist of tech-based, data-driven startups with a public vocation.

Compared to traditional suppliers, entrepreneurial startups have the agility, creativity, and innovation required to drive digital transformation of government services.

The startup world relies heavily on designing its services with the consumer in mind (think of how common design thinking has become over the years), while any interactions that the citizens have with the state is usually cumbersome.

It is about time that governments prioritise startup methodologies to design their services with citizen satisfaction in mind, particularly when the private sector is innovating every day to raise consumer standards.

As the private sector raises consumer expectations in Pakistan and designs its services to keep up with the needs and expectations of a young country brimming with digital opportunities, the public sector lags far behind. While the government is taking steps to digitise its services, the process is still too slow to unleash digital citizenship and foster a relationship of trust with its tech-savvy youth.

Gov-tech startups are now found in technology powerhouses around the world. If Pakistan wants to become the next big technology hub, it has to pay attention to the world of gov-tech startups and their growing impact on service delivery.

The State Bank of Pakistan recently made headlines for democratising access to foreign capital for startups. This demonstrates that there are people in the government who are willing to listen to the grievances of citizens and then update their regulations based on that exchange. The newly established Special Technology Zones Authority (STZA) has been taking steps to collaborate with private sector players and academia.

There is an extraordinary opportunity for gov-tech startups to identify and fill in the gaps. If one considers online and offline citizen interactions with the public sector, there is an opportunity to innovate every step of the way. Does the government of Pakistan have the appetite to spearhead the growth of this new ecosystem that will be designed for its benefits and efficiency? More importantly, will the old guard that upholds the traditional procurement process stand in the way of this massive opportunity? The government needs a visionary and bold agenda to make this newly emerging sector a priority.

The writer is a researcher. She can be reached at warda.malik@nyu.edu