This paper studies the impact of human capital on the adoption and
diffusion of Information and Communications Technologies (ICT) in the Pakistani
firms using the World Bank Enterprise Survey 2002-07. The paper considers various
indicators of human capital and measures of ICT adoption and diffusion. On-the-job
training, manager’s level of qualification and production workers’ level of education
are found to positively determine the use of emails, website and other means of
communication in a firm. The results are robust to the inclusion of geographical,
sectoral and structural control variables. Firm size, sales and workers’ compensation
are also positively associated with the use of ICT. The findings show the importance of
accumulation and development of human capital in the productivity growth in the era
of skill-biased technical change. A concerted national effort for the enhancement of the
workforce’s computing skills is therefore a must if a developing economy such as
Pakistan is to improve its competitiveness.