Startups & business

China's increasing role in Pakistan's digital transformation raises sovereignty concerns

techexpresshub Staff3 October 2026 at 09:18 UTC2 min read
China's increasing role in Pakistan's digital transformation raises sovereignty concerns

Digital Desk | New Delhi, Oct 3 (IANS) China’s deepening role in Pakistan’s digital economy is accelerating modernisation but creates concerns about long‑term dependence on Chinese technology, a new report has said. The report from Greece-based publication Geopolitico said Chinese tech firms, particularly Huawei, have become increasingly involved in Pakistan’s telecommunications, cloud-computing, smart-city and artificial-intelligence sectors which could lead to a "technological lock‑in." Chinese firms are running training programmes for Pakistani students and professionals in areas such as AI, cybersecurity and cloud services, which could help build human capital and speed digital readiness. However, critics warn that if engineers, government agencies and private companies are trained on proprietary Chinese systems, switching to alternative systems could be very costly. "Once a country’s databases, cloud infrastructure, telecom equipment and cybersecurity architecture are built around one technological ecosystem, diversification becomes both expensive and operationally difficult," the report noted. When technology moves into critical national infrastructure, Pakistan may develop national databases, cybersecurity systems and digital-governance platforms in close cooperation with Chinese institutions and companies. Consequently, Chinese technical norms and data-management standards may also be adopted, the publication argued. This threatens domestic control over software, code, access permissions, encryption standards, data storage and the ability to replace one supplier with another. Chinese influence could create a "technological path dependence powerful enough to constrain national sovereignty" of Pakistan. Hence, Islamabad would need to accompany Chinese investment with stronger domestic safeguards, the report argued, calling for strict data-localisation rules, robust personal-data legislation and domestic access to source code where national-security systems are concerned. The publication also stressed the importance of diversified suppliers and serious investment in indigenous research and development. The second phase of the China‑Pakistan Economic Corridor, or CPEC 2.0, has moved beyond roads and energy to focus on industrial development, agriculture and digital integration. The digital integration component offers technologies to Pakistan that would otherwise require huge domestic investment and years of development. China’s wider Digital Silk Road strategy aims to expand Chinese technological standards, platforms and infrastructure abroad, the report alleged. "Under this model, physical connectivity — fibre-optic cables, satellite links, servers, data centres and telecom equipment — becomes inseparable from questions of data governance, software ecosystems and long-term strategic influence," the report noted.

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