Digital FDI Initiative Pakistan 2025

A rich repository of 55 policy options emerged from the consultation held to address the challenges identified and unlock the potential of opportunities outlined earlier. These policy options are closely aligned with results from the investors’ survey, which emphasized similar factors as important in influencing investment decisions. The complete results from the survey can be found in Annex 2. Policy options have been categorized in the following thematic areas: 1. Strengthen the institutional architecture to promote an integrated understanding of the digital economy 2. Create an enabling regulatory environment through interventions and measures to ensure policy continuity, coherence and ease of compliance 3. Improve the business case for companies that are digital natives as well as digital adopters through a digital-centric tax regime4. Enhance digital infrastructure to create a cost- effective and accessible digital ecosystem that can support the digital economy 5. Bridge the industry–academia gap through collaboration, policy interventions and capacity-building 6. Facilitate cross-border access to capital and funding for businesses 7. Strengthen IP and data governance (laws and regulations) to align with international good practices While all 55 of the policy options identified during these consultations have the potential to positively influence and enable digital FDI either directly or indirectly, a systematic prioritization was undertaken to determine the resources, time and effort required to achieve the highest impact. The policy options were analysed and synthesized in an action priority matrix where each policy option was scored on the following metrics:3.3 Policy options Defining metrics across which all policy options are ranked in the action priority matrix TABLE 3 Scoring indicator Metric Description RelevanceThe degree to which a policy option can influence increased digital FDI ImpactThe effect of a policy option on the digital ecosystem to eventually increase digital FDI EffortA composite estimate comprising: –Ease –Time frame –Acceptability to decision-makersDirect Indirect High Medium Low Low Medium High Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 18