Digital FDI initiative promises transformation

Islamabad: Minister for IT and telecommunications Shaza Fatima Khawaja on Sunday said the implementation of the Digital Foreign Direct Investment Initiative marked a transformative moment for Pakistan's digital landscape.

“By fostering a robust digital infrastructure, encouraging the adoption of new technologies, and supporting innovation, we are positioning Pakistan as a regional leader in digital transformation. Together, we are building a digital future that benefits all Pakistanis,” the minister said in a statement.

She said the initiative was set to position Pakistan as a regional leader in digital transformation, unlocking its potential to attract substantial foreign investment and drive economic growth.

The minister said in order to enhance its digital economy, Pakistan had become the first country to implement the Digital Foreign Direct Investment (FDI) Initiative launched by the World Economic Forum and the Digital Cooperation Organisation (DCO) at Davos in 2022. "This initiative aims to facilitate cross-border investment in the digital economy, particularly in emerging markets, and marks the beginning of Pakistan’s Digital FDI-Enabling Project," he said.

The minister said the project was structured around four key pillars of the World Economic Forum’s Digital FDI framework, including Digital Infrastructure, Digital Adoption, New Digital Activities, and digital services exports. She said each pillar targeted critical growth areas necessary for attracting sustained digital FDI in Pakistan.

The project team, in collaboration with the Ministry of Information Technology and the Board of Investment, has finalised six priority actions to drive the initiative forward. They included: promote private-sector projects based on sectoral priorities and ticket size to connect local players with international investors and partners, encourage partnerships between domestic and international stakeholders to foster collaboration in the digital ecosystem, and enhance government support for enabling infrastructure, ensuring a conducive environment for digital investments.

The other actions are to build capacity for the adoption of new digital technologies among local businesses, accelerate export growth through the promotion of digital services and foster innovation by supporting new digital activities and startups.