PM Shehbaz welcomes Pakistan’s inclusion in WEF’s Digital FDI Initiative

Prime Minister Shehbaz Sharif Saturday welcomed Pakistan’s inclusion in the joint Digital Foreign Direct Investment (FDI) Initiative by the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO).

“Pakistan is the first country to adopt the Digital Foreign Direct Investment Initiative under the World Economic Forum,” said PM Shehbaz, in a statement issued by the Prime Minister’s Office (PMO).

The Digital Foreign Direct Investment (FDI) Initiative was officially launched by the WEF and the DCO in 2022 at Davos. The initiative is a pioneering effort to facilitate cross-border investment in the digital economy, especially in emerging markets.

As per WEF’s recently released report, the project is structured around four pillars adopted from its Digital FDI framework – (1) digital infrastructure, (2) digital adoption, (3) new digital activities and (4) digital services exports – each targeting critical areas for growth that are essential for attracting sustained digital FDI in Pakistan.

The WEF said that the digital ecosystem in Pakistan has great potential. FDI that supports its growth is a powerful driver of sustainable economic progress

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“The project aims to boost digital FDI in Pakistan by promoting a digitally friendly investment climate and increasing investor interest and activity in the country.

“Such investment can offer access to advanced technology, global expertise and infrastructure that can accelerate economic growth, boost competitiveness, and promote resilience,” read the report.

As per WEF, Pakistan has attracted relatively low levels of digital FDI, especially compared to regional peers such as India and Indonesia. “FDI in India is nearly 20 times higher,” it said.

It noted that with the formation of a new government in February 2024, there is an opportunity for Pakistan to stabilize political conditions, which will help boost investor confidence and further attract digital FDI.

Meanwhile, PM Shehbaz said that Pakistan’s first Digital FDI project is making significant efforts to promote digital growth by identifying key targets.

“This is a significant milestone towards creating an investor-friendly environment in the country,” he said.

The prime minister further stated that Pakistan is moving toward an inclusive digital economy, a step toward sustainable development and prosperity. “This initiative reflects the government’s commitment to fostering economic growth.”