Fajar Rehman

The digital era has drastically transformed societies around the world, reshaping economies, governance, and how individuals interact with each other. As technology continues to integrate into every aspect of daily life, the importance of robust legislative frameworks to address the emerging challenges of the digital landscape has become undeniable. Among the most pressing challenges are cybersecurity threats, data privacy concerns, digital fraud, misinformation, and the ethical dilemmas posed by artificial intelligence (AI).

To address these issues, governments across the globe have introduced comprehensive legislative measures aimed at protecting citizens, ensuring responsible data usage, and fostering digital economies. A significant step in Pakistan’s digital transformation is the recent enactment of the Digital Nation Pakistan Act, 2025 (referred to as “the Act”). This legislation seeks to create a secure and inclusive digital society, but its provisions require critical examination, especially when compared with other international data protection frameworks like the European Union’s General Data Protection Regulation (GDPR) and various U.S. data protection laws, such as the California Consumer Privacy Act (CCPA) and the New York SHIELD Act.

Key Provisions of the Digital Nation Pakistan Act

The Digital Nation Pakistan Act is designed to govern various aspects of Pakistan’s digital ecosystem, from data exchange to digital identity management. One of the central components of the Act is the creation of a National Digital Commission and the Pakistan Digital Authority. These bodies are tasked with overseeing digital transformation initiatives and regulating data governance policies. The Act also introduces a Data Exchange Layer, a framework that aims to facilitate standardized data sharing between government bodies and private enterprises while ensuring data security, integrity, and accessibility.

While these initiatives are necessary steps toward fostering a digital economy, there are notable concerns regarding the Act’s approach to data privacy, user rights, and cybersecurity, especially when viewed through the lens of international standards.

Data Privacy and User Rights: A Missed Opportunity

A critical area of concern is the Act’s treatment of data privacy and user rights. Unlike the GDPR, which offers a clear framework for user consent in data collection, the Digital Nation Pakistan Act lacks explicit provisions requiring informed consent for data processing. This ambiguity creates room for potential misuse, particularly given the increasing amount of sensitive data collected by both government and private entities. Furthermore, the Act does not define user rights clearly, which raises significant questions about the protection of personal data and individuals’ control over their information.

The GDPR, enacted in 2018, grants individuals substantial control over their personal data. It requires companies to obtain explicit consent before processing personal data, provides rights such as access, rectification, data portability, and the right to be forgotten, and imposes strict rules for cross-border data transfers. In contrast, Pakistan’s law fails to establish a similar framework of rights for users, rendering it less robust in terms of data protection and privacy safeguards.

Additionally, the United States presents a fragmented approach to data privacy, with state-level laws like the CCPA and the New York SHIELD Act offering varying degrees of protection. While the CCPA provides consumers with rights to access, delete, and opt-out of the sale of their personal information, the Digital Nation Pakistan Act does not offer such comprehensive rights to citizens. Without clear user rights provisions, the Act falls short in ensuring that individuals have control over their data.

Digital Identity and Centralized Data Governance

A significant aspect of Pakistan’s digital transformation outlined in the Act is the governance of digital identities. The National Database and Registration Authority (NADRA) is tasked with issuing and managing digital identities, a move that streamlines service delivery but also introduces significant privacy concerns. Centralizing digital identity management in one body raises risks related to data security, potential misuse by state actors, and the possibility of surveillance.

By centralizing personal information, the government may unintentionally expose citizens to privacy violations, especially without adequate safeguards in place. Under GDPR’s Article 25, data minimization principles are enforced, ensuring that data collection is proportionate, necessary, and secure. However, Pakistan’s Act lacks such stringent obligations, which could leave citizens’ sensitive information vulnerable to breaches and unauthorized access. Moreover, the Act does not introduce sufficient protections for biometric data, despite the growing use of biometric systems in digital identity verification.The digital era has drastically transformed societies around the world, reshaping economies, governance, and how individuals interact with each other.

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Cross-Border Data Transfers: Lack of Clear Regulations

Another area where the Act falls short is its treatment of cross-border data transfers. Under GDPR’s Article 45, personal data can only be transferred to countries outside the European Union if the receiving country has adequate data protection measures in place. However, the Digital Nation Pakistan Act does not provide clear guidelines regarding international data transfers. This oversight creates potential risks for Pakistani citizens, as their data could be shared with foreign entities without sufficient privacy protections.

The absence of data localization requirements and regulations governing international data sharing could expose Pakistani users to risks such as foreign surveillance, data breaches, and the commercial exploitation of their personal information. The lack of clarity on this matter makes it difficult for businesses to ensure compliance with international data protection standards, which could hinder Pakistan’s ability to build trust in its digital economy.

Cybersecurity: An Overlooked Issue

While the Digital Nation Pakistan Act addresses several aspects of digital governance, it lacks specific provisions on cybersecurity. In comparison, laws like the U.S. Cybersecurity Information Sharing Act (CISA) and the New York SHIELD Act impose mandatory security frameworks, breach reporting requirements, and penalties for non-compliance. Similarly, the European Union’s NIS Directive (2016/1148) mandates critical sectors to implement cybersecurity measures and report security incidents. However, Pakistan’s Act does not enforce any similar security compliance standards or breach notification protocols.

This oversight could lead to uncertainty about the responsibilities of data controllers in the event of a cyberattack. Without mandatory cybersecurity measures and breach notifications, organizations may not be adequately prepared to respond to data breaches, leaving citizens vulnerable to the consequences of cyberattacks.

Recommendations for Strengthening the Digital Nation Pakistan Act

To align the Digital Nation Pakistan Act with global data protection standards, several enhancements are necessary. First, the Act should introduce clear provisions for user rights, including the right to access, rectify, delete, and restrict the processing of personal data. This would grant individuals more control over their data, in line with the protections offered by GDPR.

Second, mandatory encryption, data anonymization, and breach notification protocols should be incorporated to enhance cybersecurity. These measures are essential for ensuring the safety of personal data in an increasingly interconnected world.

Third, clear regulations for cross-border data transfers should be established to protect citizens’ data from being shared with countries that do not meet adequate data protection standards. Additionally, sensitive data classifications should be introduced to impose stricter regulations on health, financial, and biometric data.

Lastly, an independent Data Protection Authority should be created to monitor compliance, enforce penalties for violations, and ensure the Act’s provisions are implemented effectively. Furthermore, algorithmic transparency should be mandated to prevent biases and discrimination in AI-driven decision-making systems.

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Conclusion

The Digital Nation Pakistan Act, 2025, represents a significant step in Pakistan’s digital transformation, but it requires substantial improvements to align with international best practices. Strengthening user rights, enhancing cybersecurity measures, regulating cross-border data transfers, and ensuring independent oversight are critical to building a secure and privacy-respecting digital ecosystem. As the world continues to advance in terms of data protection, Pakistan must ensure that its regulatory framework keeps pace with global standards, safeguarding citizens from emerging digital threats.