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South Asian countries are deepening their digital transformation initiatives, as three nations this week announced plans to invest in AI, digital ID, and digital public infrastructure. Sri Lanka gears up to launch its national digital ID by Q3 2026; meanwhile, Pakistan unveils a $1 billion AI investment plan, and the World Bank approves a $50 million investment to accelerate Nepal’s digital transformation.
Nepal and World Bank’s digital transformation agreement
On February 9, the World Bank‘s Board of Executive Directors approved a $50 million budget to support Nepal’s digital public infrastructure and digitalize the country’s public services. In a press release, the World Bank announced the launch of the “Nepal Digital Transformation Project.” This initiative will invest in several platforms such as an integrated online citizen service portal, a social registry, a government data exchange, and a digital locker for managing verifiable credentials and digital wallets.
“By investing in core digital platforms and digitalizing services, this project will help deliver enhanced services to people and businesses in an inclusive and transparent manner thereby improving service delivery, public sector efficiency, and good governance,” said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka.
Financed under a joint agreement between the World Bank and the Asian Development Bank (ADB), the World Bank will take the lead role while ADB plans to contribute $40 million to the project. ADB will present the project to its Board by March 2026. Nepal’s Ministry of Communications and Information Technology, alongside the Department of National ID and Civil Registration, will implement a digital transformation project to streamline government services and governance across the South Asian country.
Pakistan invests a whopping $1 billion in AI
In other news, Pakistan’s Prime Minister Shehbaz Sharif announced that the country plans to invest $1 billion in artificial intelligence (AI) by 2030. During the launch of Indus AI Week 2026, the country’s official national AI platform, in Islamabad, Sharif announced that a $1 billion investment will significantly advance the development of the country’s AI ecosystem.
Pakistan plans to implement an AI curriculum nationwide, including in the Pakistan-administered regions of Kashmir and northern Gilgit-Baltistan. Additionally, the government has committed to providing 1,000 fully funded PhD scholarships and training 1 million non-IT professionals in AI skills. This announcement follows the approval of the country’s first national AI policy in 2025.
“Last but not least, we will launch a nationwide program to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improve livelihoods,” Sharif said.
The South Asian country has been making strides in digital transformation. In January this year, the country’s Ministry of Finance signed a memorandum of understanding (MOU) with a DeFi project linked to Donald Trump, World Liberty Financial, to “explore innovation in digital finance.”
Sri Lanka aims to modernize public services, drive digital growth
Still in Asia, Sri Lanka Unique Digital Identity (SL-UDI) project has received a LKR 10.4 billion ($33.6 million) grant from India to modernize the country’s digital infrastructure by Q3 this year.
Built on India’s Modular Open-Source Identity Platform (MOSIP), the project will use biometric data—facial, fingerprint, and iris scans—to secure “unique verification,” alongside its “e-Locker” mobile app, which will be managed by a Sri Lankan service provider, Biometric Update reported.
Five Indian firms—Infosys Ltd, Tata Consultancy Services Ltd, Protean e-Gov Technologies Ltd, RailTel Corporation of India Ltd, and Bharat Electronics Ltd—have already been shortlisted for implementation.
The project is critical to Sri Lanka’s push to modernize its public services and strengthen the nation’s digital economy. It aims to integrate existing e-NIC and database systems by 2030, under the oversight of the Department for Registration of Persons. Meanwhile, Sri Lanka CERT will proceed with the security audit activation.
The initiative aligns with Sri Lanka’s broader digital expansion plans, including 4G/5G coverage and the creation of Virtual Special Economic Zones to boost tech exports. The country already has strong connectivity, with over 91% of mobile connections and average download speeds exceeding 45 Mbps.
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