Pakistan has made history by becoming the first country to implement the Digital Foreign Direct Investment (FDI) Initiative, a global project launched by the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO).
This milestone is part of Pakistan’s Digital FDI-Enabling Project (DEP), a strategic initiative designed to foster cross-border investments in the digital economy, particularly in emerging markets.
Minister for IT and Telecom Shaza Fatima Khawaja stated, “The implementation of the Digital Foreign Direct Investment Initiative marks 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.”
This initiative is set to position Pakistan as a regional leader in digital transformation, unlocking its potential to attract substantial foreign investment and drive economic growth.
PM welcomes Pakistan’s inclusion in WEF’s Digital FDI Initiative
Prime Minister Shehbaz Sharif hailed the development, emphasizing that the initiative marks a significant step in advancing Pakistan’s digital economy. “The initiative’s first digital FDI project aims to identify key targets and advance digital growth,” he said, noting that it incorporates a framework focused on digital infrastructure, digitization, and the export of digital services. “Pakistan is moving towards a comprehensive digital economy, which is a step towards sustainable development and prosperity,” the Prime Minister added.
“From expanding revenues to increasing workforce and global exports, Pakistan is scaling new heights in its stride for digital transformation,” PM Sharif said on X, adding that he was “proud” to witness Pakistan as the first country to implement the initiative.
“We reaffirm our unwavering commitment to cultivating a thriving digital investment ecosystem, paving the way for #DigitalProsperity4All.”
The project, structured around four key pillars of the WEF’s Digital FDI framework, seeks to enhance digital infrastructure, encourage digital adoption, promote new digital activities, and boost digital services exports. Each of these pillars targets vital areas for growth, ensuring that Pakistan becomes a hub for sustained digital FDI.
In the last five months, Pakistan has seen a 31% increase in net FDI, reaching $1.124 billion. This growth is reflective of the country’s improving economic indicators and investor confidence. According to State Bank of Pakistan (SBP) data, the FDI inflows from countries such as China, Hong Kong, and the UK have also seen significant rises, indicating a positive outlook for Pakistan’s investment climate.
As a member of the 16-member Digital Cooperation Organization (DCO), Pakistan is positioned to play a key role in the global push for inclusive and sustainable digital growth.
What is Digital FDI Initiative?
The World Economic Forum and the Digital Cooperation Organization (DCO) launched the Digital Foreign Direct Investment (FDI) initiative in 2022 at Davos to enhance cross-border digital investment, particularly in emerging markets.
Pakistan is the first country to volunteer to implement this initiative, marking the beginning of the Digital FDI-Enabling Project (DEP).
Pakistan is actively promoting a digital-friendly investment climate to boost digital foreign direct investment (FDI). The Digital FDI Initiative aims to facilitate cross-border investment in emerging markets. Pakistan is the first country to implement this initiative, marking the start of the Digital FDI-Enabling Project (DEP).
6 key actions
The project has identified six key actions across four pillars to support the digital economy. These include:
- Promoting private-sector projects aligned with sectoral priorities to connect local players with international investors and partners.
- Encouraging partnerships between domestic and international stakeholders to foster collaboration within the digital ecosystem.
- Enhancing government support for enabling infrastructure to create a conducive environment for digital investments.
- Building local capacity for adopting new digital technologies and accelerating the development of special technology zones (STZs).
- Accelerating the export of digital services.
- Supporting innovation and the development of new digital activities and startups.