Digital FDI Initiative
LAHORE: Prime Minister Shehbaz Sharif announced that Pakistan has become the first country to implement the Digital Foreign Direct Investment (FDI) Initiative, launched jointly by the World Economic Forum (WEF) and the Digital Cooperation Organisation (DCO).
This milestone reflects Pakistan’s dedication to fostering a digital economy and attracting foreign investment to accelerate sustainable growth.
According to a government spokesperson, the premier lauded the country’s efforts under the Digital FDI project, which aims to enhance digital infrastructure, promote digitisation, and boost the export of digital services.
The framework focuses on identifying key areas likely to attract foreign investment, fostering an environment conducive to innovation and technological progress.
“This is a significant milestone toward creating an investment-friendly environment in Pakistan,” Shehbaz Sharif stated. He emphasized that the initiative is a critical step in the nation’s journey toward a vibrant digital economy, which is essential for achieving long-term progress and prosperity.
The initiative, he added, underscores the government’s unwavering commitment to fostering economic growth through technological advancement.
Pakistan’s efforts in attracting foreign investors are yielding tangible results. The country’s net FDI rose by 31%, reaching $1.124 billion in the first five months of the current fiscal year.
Data released by the State Bank of Pakistan (SBP) highlighted a net FDI inflow of $219 million in November 2024, marking a 27% increase compared to $172 million during the same period last year and a 65% rise from $133 million in October.
China remains the leading contributor, with FDI from Chinese companies rising by 60% to $469 million between July and November FY25.
Investments from Hong Kong also grew by 44%, reaching $116 million, while the UK contributed $113 million, up from $100 million during the same period last year.
Sector-specific investments reveal the power sector as a major beneficiary, with a 51% increase in FDI amounting to $454 million. The financial sector also witnessed steady growth, securing $249 million, while FDI in the gas and exploration sector rose by 24%, reaching $125 million.
The Digital FDI initiative, combined with improving macroeconomic indicators and robust investor confidence, positions Pakistan as a promising destination for foreign investments, paving the way for a stronger and more sustainable digital economy.
