ISLAMABAD: Pakistan has been devising an action plan in consultation with different ministries and departments aiming to fetch multimillion dollars in investments under the Digital Foreign Direct Investment Enabling WEF Initiative (DFDI) under the aegis of the World Economic Forum (WEF).
Pakistan requires a coherent and stable policy regime aligned with all stakeholders, including the Ministry of IT, Board of Investment, Federal Board of Revenue, Pakistan Telecommunication Authority, and STZs, to ensure consistency in long-term policy. The World Bank funded DEEP (Digital Economy Enhancement Project) to promote the digital economy in Pakistan.
There are certain prerequisites to place an enabling environment to set the stage for attracting investment in this part of the world.
It is very difficult to give an estimate for investment but in the short to medium term Pakistan can fetch up to $1 billion provided placement of a comprehensive ecosystem to connect all dots for meeting all requirements of potential investors. Nothing can be achieved if there is no sanctity of contracts and agreements are guaranteed to enhance the confidence level of investors.
The action plan being devised by Pakistan in consultation with different ministries and departments will outline materializing six basic themes over the medium term for achieving the desired goals.
Pakistan has been selected as the inaugural country to implement the joint Digital Foreign Direct Investment (FDI) Initiative by the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO). This initiative, launched in 2022 at Davos, aims to facilitate cross-border investment in the digital economy, particularly in emerging markets.
The project in Pakistan is structured around four key pillars:
1. Digital Infrastructure: Developing robust digital frameworks to support technological growth.
2. Digital Adoption: Encouraging the integration of digital technologies across various sectors.
3. New Digital Activities: Fostering innovation and the creation of new digital services and products.
4. Digital Services Exports: Promoting the export of digital services to enhance economic growth.
First of all, the government has placed the Digital Nation Act with the assent of the Parliament to spearhead the assigned task for placing digital initiatives at the forefront level. The Board of Investment (BoI) will play a catalyst role in ensuring effective coordination along with the Ministry of Information Technology to accelerate the process of DFDI.
WEF Initiative: Unified Digital Ecosystem for Inter-Governmental Connectivity
There is a need to build a single unified digitised system to connect government ministries and create an inter-governmental data-sharing mechanism to remove data silos working at different levels. It aims to create synergy at different levels and tiers of the government. The development of such an eco-system will provide an enabling environment to attract digital foreign direct investment in Pakistan. There is also a need to place a mechanism to dispatch services outside Pakistan because only two-way traffic will ensure interdependence with other peer countries and regions.
Through extensive stakeholder consultations and surveys, six priority actions have been identified to address challenges and unlock opportunities within these pillars. These actions include promoting private-sector projects, enhancing human capital through advanced education and training, and ensuring efficient spectrum management to improve connectivity.
The project team, in collaboration with the Ministry of Information Technology and Telecommunications (MoITT) and the Board of Investment (BOI), has finalised six priority actions to drive the initiative forward:
1. Promote private-sector projects based on sectoral priorities and ticket size to connect local players with international investors and partners.
2. Encourage partnerships between domestic and international stakeholders to foster collaboration in the digital ecosystem.
3. Enhance government support for enabling infrastructure, ensuring a conducive environment for digital investments.
4. Build capacity for the adoption of new digital technologies among local businesses.
5. Accelerate export growth through the promotion of digital services.
6. Foster innovation by supporting new digital activities and start-ups
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