Digital adoption The Digital Pakistan Policy of 201817 was a significant step that promoted digital adoption in sectors such as banking, education and health. However, its implementation has been uneven, particularly among small and medium enterprises (SMEs), which face barriers including low digital literacy and limited access to digital tools. The COVID-19 pandemic temporarily accelerated digital adoption in areas such as e-commerce and digital payments, driven by start-ups. Sustaining this momentum requires addressing macroeconomic challenges, improving regulatory consistency and fostering coordinated digital infrastructure development to support long-term growth. New digital activities Data centres offering cloud services are largely supported through local sponsors. Key players include RapidCompute, PTCL, Nayatel, Multinet, Cloudways and Cybernet. Some international players do offer services through local partners, e.g. AliCloud through Telenor. AWS has recently established a local office under the name Amazon Data Services Pakistan and is looking to introduce offerings to encourage the uptake of cloud computing. Despite a push from regulatory provisions, major social media platforms have yet to establish a local office with resident staff in Pakistan. So far, Google has opened a liaison office, with others now allowed to operate with a virtual presence. The absence of robust data protection measures presents a challenge for external cloud hyperscalers entering the market,18 with data localization requirements being an important consideration. The investors’ survey confirms the necessity of data localization requirements, and copyright and patent laws to protect intellectual property are a significant factor for companies when considering investment. The complete results of the survey can be found in Annex 2. Strengthening these protections could help create a more conducive environment for investment opportunities in Pakistan. Digital services exports and outward digital FDI Pakistan’s digital services exports, primarily driven by the IT sector, have shown strong growth. In 2024, Pakistan’s IT exports reached $3.2 billion,19 reflecting a notable year-on-year increase of 24% from the previous fiscal year’s $2.59 billion.20 However, there is significant potential for even greater growth, especially when compared to the progress of regional peers. To enhance integration with the global digital economy, a fully supportive ecosystem for outward digital FDI is required.Pillar 2 Pillar 3Pillar 4 Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 11

Digital FDI Initiative Pakistan 2025