Factors companies consider important when investing in existing firms that are moving towards adopting digital technologies FIGURE A3 Least important (up to 4) 5 6 7 8 9 Most importantAvailability of e-payment services Availability of local software industry and IT solutions Support for local digital skills development Support for partnerships between multinational enterprises and local SMEs Availability of digital ID Low tariffs on digital hardware Support for partnerships with research centres Support from government with access to capital Prevalence of e-government services Subsidization/tax deductions on ICT-related expenditures%% %% %% %% % %%Low taxes on digital goods and services32 2924 5 6 12 9 35 8 21 26 17 25 2427 27 11 33 24 9 41 10 54 12 6 9 625 24 24 22 27 26 10 14 2 30 1921 20 1922 12 5 6 7 21 25 31 8 22 7 726 19 8 9 24 4 23 3 4 6 5 6 Low tariffs on digital software (inputs in digital format) % 19 33 16 62 11 1313 27 32 53 17 3 Source: Azure Knowledge, 2023 Physical elements that companies consider important when investing in digital infrastructure FIGURE A4 Source: Azure Knowledge, 2023 Least important (up to 4) 5 6 7 8 9 Most importantEnergy/power infrastructure Level of connectivity of urban centres Level of international connectivity Level of national connectivity (backbone) Level of connectivity of research or academic institutions 5G readiness and adoption plan Level of connectivity of rural areas Establishment of community centres at rural level Domestic internet exchange points (IXP) Domestic data centres%% %% %% %% % %%4G mobile network coverage2 98101231118 7655333223 117584755438 1418141271171012114 2428212627222425252219 1822261621283430252824 1719212326262629313234 Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 33

Digital FDI Initiative Pakistan 2025