Prime Minister Shehbaz Sharif announced that Pakistan has become the first country to adopt the Digital Foreign Direct Investment (FDI) Initiative under the World Economic Forum (WEF).
The Digital FDI Initiative, launched in 2022 by the WEF and the Digital Cooperation Organization (DCO) during the annual meeting in Davos.
According to the WEF's recent report, the initiative is structured around four key pillars:
- Digital Infrastructure
- Digital Adoption
- New Digital Activities
- Digital Services Exports
These pillars target critical areas necessary for fostering sustained digital FDI in Pakistan.
Digital Ecosystem Potential in Pakistan
The WEF highlighted the potential of Pakistan’s digital ecosystem, emphasizing that digital FDI could significantly drive sustainable economic progress.
By creating a favorable investment climate and encouraging investor participation, the initiative aims to promote digital economic growth in the country.
“This investment can provide access to advanced technologies, global expertise, and infrastructure, thereby accelerating economic growth, improving competitiveness, and strengthening resilience,” the WEF report noted.
However, Pakistan currently attracts relatively low levels of digital FDI compared to regional peers like India and Indonesia, with India's FDI inflow being approximately 20 times higher.
The report suggested that the formation of a new government in February 2024 could provide an opportunity to stabilize political conditions, boost investor confidence, and attract more digital FDI.
A Milestone for Pakistan
Prime Minister Shehbaz Sharif described the initiative as a major milestone in promoting digital growth and creating an investor-friendly environment.
He stated that Pakistan is working ua toward building an inclusive digital economy, which is a significant step toward sustainable development and prosperity.
“This initiative reflects the government’s commitment to fostering economic growth,” he added.
The announcement reinforces Pakistan’s vision to leverage digital advancements for long-term economic progress and global competitiveness.
These pillars target critical areas necessary for fostering sustained digital FDI in Pakistan.
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