Digital FDI Initiative Pakistan 2025

Data privacy regulationsRemoval and Blocking of Unlawful Online Content (Procedure, Oversight and Safeguards) RulesRules MoITT 2021Mandates the PTA to remove or block any unlawful online content as understood as per the local law. The rules promote the use of technology and automation for the detection and filtering of such content, while also emphasizing the importance of human oversight in complex cases. Promoting transparency and accountability in the enforcement of these rules can enhance public trust and cooperation. While the rules refer to other statutory laws to define what is unlawful, further clarity in definitions of terms (e.g. obscenity, morality, decency, etc.) can help with effective implementation. The rules also allow aggrieved parties to appeal to the regulator for a review of its decisions or even approach the courts. Economic and technology zone regulationsSpecial Technology Zones Authority ActAct N/A 2021Provides a legal framework for establishing and operating special technology zones (STZs) in Pakistan that aim to promote innovation, entrepreneurship and technology-based industries. This has the potential to contribute substantively to the development of a vibrant and competitive digital ecosystem in Pakistan, attracting local and foreign investment, talent and innovation. While previously the implementation of the model has been relatively slow, the board of investment is actively pursuing the operationalization of STZs. Special Economic Zones Act 2012Act N/A 2012Provision of attractive incentives and a conducive environment for foreign investors, such as tax exemptions, duty-free imports of capital goods and equipment and relaxed regulatory requirements. The one-stop shop (OSS) operation makes SEZs unique. For effective implementation, concerns such as overlapping responsibilities between federal and provincial-level SEZ-related authorities need to be resolved. The BOI is dedicatedly working towards improving the implementation of the act. Availability of e-payment services National Payment Systems Strategy Policy SBP 2019Necessary provision for a comprehensive and coordinated approach to modernizing the payment systems landscape. The strategy needs to be actively monitored and adapted to keep up with changes as a result of new and emerging digital technological advances. Regulations for Electronic Money InstitutionsRegulation SBP 2019Regulations that promote innovation in the payments landscape and financial inclusion. In the years since 2019, new digital technologies and services have emerged requiring pertinent revisions to be made to regulate the broadening digital payments ecosystem effectively. Licensing and Regulatory Framework for Digital Banks Regulation SBP 2022First step towards embracing changes in the digital financial landscape by providing legal support and structure to facilitate digital banks. The regulation aims to reduce costs and barriers to entry for digital banks to enable the expansion of financial services to underserved and unbanked segments. However, these opportunities come with inherent challenges. Risks of cybersecurity and data privacy breaches have to be effectively addressed as digital banks operate in a highly interconnected and vulnerable ecosystem and deal with customers’ sensitive personal and financial information. Regulatory Framework for Digital- only Insurers and Microinsurers 2021Regulation SECP 2021Promotes innovation, inclusion and efficiency in the insurance sector by enabling digital-only insurers and microinsurers to offer affordable, customized and accessible insurance products and services. There are challenges in striking the delicate balance between promoting a dynamic and competitive market and safeguarding public policy objectives, such as financial stability, consumer protection and fair competition. Payment Systems and Electronic Fund Transfers Act 2007Act SBP 2007The only existing legislation to ensure the safety, security and efficiency of electronic fund transfers. Updated via regulations in 2019, see above Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 27