PAKISTAN’S PATH TO PROSPERITY: INTEGRATING DIGITIZATION AND EDUCATION FOR SUSTAINABLE ECONOMIC GROWTH

Abstract

Digitization and education are widely recognized as pillars of modern economic development. However, in the context of Pakistan, their interactive role in fostering sustainable growth is underexplored, with literature often treating them in isolation. This study addresses this research gap through an empirical analysis, utilizing ARDL methodology on time series data from 2005 to 2023. The result shows that in Pakistan, digitalization, education, interactive term of (DIGI*Edu) and gross fixed capital formation have positive effect on economic growth in long run. In contrast, inflation exhibits no significant long-run effect. The study concludes that for Pakistan to achieve higher economic growth, policymakers must concurrently invest in digital infrastructure, prioritize educational development, and foster a stable investment climate. The paper contributes to a more holistic framework for policymaking in the digital age.