Digital FDI Initiative Pakistan 2025

Draft action plan 4 – Priority action 4 TABLE 9 Become a digital-centric tax destination by offering rationalized and stable tax policy and regulations for investors. Conduct a comprehensive study to review the current tax regime, benchmarking against international and regional digital taxation regimes and identifying best practices Conduct trend analysis of Pakistan’s tax structures over the past 20 years and undertake modelling and sensitivity analysis to gain a comprehensive understanding of the tax landscape and priorities Organize a closed-door workshop with all relevant government and private-sector partners (MoITT, the Federal Board of Revenue [FBR], P@SHA, the Pakistan Telecom Operators’ Association [TOA], the Venture Capital Association of Pakistan, the Overseas Investors Chamber of Commerce and Industry [OICCI], the Pakistan Business Council, BOI) for a comprehensive dialogue on the rationale for the current tax regime and its implications, demands of the industry and limitations faced by the government Establish a digital tax forum to hold dialogues on the tax regime for the digital sector and explore rationalization strategies to help bridge the gap between government priorities and industry demands Align and commit to the tax regime on digital for the next year by an agreed timeline (suggested March 2025)4.14 4.2 4.3 4.4 4.5 The World Economic Forum, DCO and Tabadlab will provide support for the implementation of these action plans Draft action plan 5 – Priority action 5 TABLE 10 Accelerate the operationalization of STZs. Facilitate consultations with relevant actors to understand current delays and explore potential solutions Use the NDC and the Digital Transformation Authority (DTA) to highlight and emphasize the need to accelerate the establishment and operationalization of STZs Conduct a sizing study to demonstrate the impact of virtual STZs Hold dialogue to explore the establishment of virtual STZs Facilitate the implementation of the solutions deliberated during dialogue5.15 5.2 5.3 5.4 5.5 The World Economic Forum, DCO and Tabadlab will provide support for the implementation of these action plans Draft action plan 6 – Priority action 6 TABLE 11 Ensure efficient spectrum management through fair pricing and transparent processes enabling timely network deployment and use to improve connectivity. Notify a spectrum working group (SWG) with high-level members from the MoITT, the Pakistan Telecommunication Authority (PTA), the Frequency Allocation Board (FAB) and mobile network operators (MNOs) Have the SWG submit a joint set of recommendations (availability – bands, blocks, terms – currency, payment plan, roll-out, quality of service (QoS) for the upcoming spectrum auction to MoITT/PTA/DTA/ NDC/the Special Investment Facilitation Council (SIFC) Hold open consultations within SWG on the findings and recommendations of consultants for spectrum auction Develop a policy brief on spectrum that outlines the decision options, upside and risks for a five-year period with respect to digital outcomes in Pakistan Publish an information memorandum for spectrum auction Outline spectrum auction and subsequent steps on roll-out/QoS6.16 6.2 6.3 6.4 6.5 6.6 The World Economic Forum, DCO and Tabadlab will provide support for the implementation of these action plans Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 23