PTBP Web Desk
The digital landscape of Pakistan, Prime Minister Shehbaz Sharif announced on Saturday the country’s inclusion in the joint Digital Foreign Direct Investment (FDI) Initiative by the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO). This initiative marks a pivotal step towards enhancing Pakistan’s digital economy framework.
“Pakistan is the first country to adopt the Digital Foreign Direct Investment Initiative under the World Economic Forum,” stated PM Shehbaz, emphasizing the groundbreaking nature of this adoption. Launched in 2022 at Davos, the initiative aims at facilitating cross-border investments in digital economies, with a particular focus on emerging markets like Pakistan.
The initiative is built on four foundational pillars as outlined by the WEF’s Digital FDI framework:
Digital Infrastructure – Focuses on enhancing the backbone of digital connectivity.
Digital Adoption – Encourages the use of digital technologies across various sectors.
New Digital Activities – Promotes innovation and new digital business models.
Digital Services Exports – Aims to increase the export of digital services, thereby boosting economic growth.
According to the WEF’s report, Pakistan’s digital ecosystem holds vast potential, where digital FDI can act as a catalyst for sustainable economic progress. The initiative is expected to create a digitally friendly investment climate, thereby increasing investor interest and activity within Pakistan.
The project promises to bring advanced technology, global expertise, and improved infrastructure to Pakistan. Such enhancements are crucial for accelerating economic growth, enhancing competitiveness, and fostering resilience in the national economy. However, the WEF report also highlighted that Pakistan has historically seen lower levels of digital FDI compared to its neighbors like India and Indonesia, where FDI is reportedly 20 times higher.
The initiative comes at a time when Pakistan is looking to stabilize its political landscape following a new government formation in February 2024, which is anticipated to boost investor confidence and attract more digital FDI.
PM Shehbaz Sharif underscored the initiative as a significant milestone in creating an investor-friendly environment. He stated, “This is a significant milestone towards creating an investor-friendly environment in the country.” He further elaborated that Pakistan is actively moving towards an inclusive digital economy, which he views as a step towards sustainable development and prosperity, reflecting the government’s commitment to fostering economic growth.
With this initiative, Pakistan is poised to leverage global digital trends to its advantage, potentially transforming its economic landscape. The government’s proactive approach in adopting such international frameworks not only signifies its commitment to digital advancement but also positions Pakistan as a pioneer in digital economic strategies among developing nations.
