By Hasan Salahuddin

China’s plan to expand its core Internet of Things (IoT) industry to over 3.5 trillion yuan by 2028 provides a practical reference for Pakistan as it seeks to accelerate digital transformation and reduce reliance on imported technologies.

According to China’s Ministry of Industry and Information Technology, the country’s 2026-2028 IoT action plan outlines a comprehensive strategy that goes beyond market expansion. It includes revising more than 50 technical standards and increasing the number of connected devices to 10 billion, reflecting a coordinated push toward interoperability, scale and industrial integration.

In comparison, Pakistan has begun laying its own digital foundations. The Digital Nation Pakistan Act, 2025, provides a legislative framework to develop secure, inclusive and interoperable digital public infrastructure. It also mandates the preparation of a National Digital Masterplan to align standards, regulations and implementation across sectors.

Speaking with Wealth Pakistan, Nadir Mushtaq, Tech Lead-IoT Solutions at INNEXIV Private Limited, said Pakistan cannot build a sustainable IoT ecosystem by relying heavily on imported hardware.

He said dependence on imported components increases costs, extends lead times and limits opportunities for local innovation. Developing domestic capacity for designing and assembling IoT hardware, he added, would enable entrepreneurs to bring products to market more efficiently and strengthen the country’s digital industrial base.

Mushtaq noted that China’s approach places strong emphasis on industrial capacity and device development as core drivers of IoT expansion. In contrast, treating hardware as a secondary component could slow Pakistan’s progress in building a competitive ecosystem.

He also stressed the importance of adhering to international standards, warning that scaling IoT solutions without compatibility with global communication and data protocols would restrict market access. Ensuring interoperability with widely used global platforms, he said, is essential for integrating Pakistani products into broader digital ecosystems.

In addition to hardware, he highlighted the need for specialised technical skills. While Pakistan produces a large number of graduates, there remains a gap in practical training that connects academic knowledge with industrial applications, particularly in embedded systems, firmware development and secure cloud integration.

He emphasised that security must remain central to IoT development. Strong data protection, encrypted communication and robust system safeguards are critical to building public and industrial trust in connected technologies.

Shahab Ahmed, a software engineer at Sumato Solutions, pointed to the practical applications of IoT in addressing urban challenges such as air pollution.

Referring to his academic work at COMSATS University, he said IoT-based sensor networks can enable real-time monitoring of air quality, traffic congestion and industrial emissions, allowing policymakers to respond more quickly and effectively.

He said Pakistan needs to move beyond isolated pilot projects and focus on large-scale deployment of such systems. Expanding connected sensor networks across cities could provide continuous data streams to support evidence-based decision-making.

Ahmed also highlighted IoT’s potential in the industrial and agricultural sectors. In manufacturing, predictive maintenance systems can detect faults early, reduce downtime and improve efficiency. In agriculture, sensors can support better irrigation management, while smart metering can enhance tracking of energy consumption and resource use.

However, he noted that Pakistan’s IoT ecosystem is still at an early stage and requires stronger enabling conditions. These include reliable and affordable internet connectivity, particularly in rural areas, local hardware development and a workforce equipped with relevant technical skills.

Drawing on China’s experience, he said Pakistan should focus on building a comprehensive ecosystem rather than relying on fragmented initiatives. The priority should shift from small-scale prototypes to scalable and reliable solutions supported by accurate data and consistent performance.

As China advances an integrated IoT ecosystem backed by industrial capacity, standardisation and large-scale deployment, Pakistan has an opportunity to follow a similar path. Strengthening domestic manufacturing, aligning standards and investing in technical skills can help the country transition from technology consumption to locally driven digital development.

Credit: INP-WealthPk