Digital FDI Initiative Pakistan 2025

Improve the business case for companies that are digital natives as well as digital adopters through a digital-centric tax regimeTHEME 3 Relevance Impact No. Option Effort Direct 23Create incentives for digital services exports by offering a (tax) refund mechanism that can easily be used by exporters Low Indirect24The FBR to provide stable tax policies and align tax incentives to digital development goals, including tax rationalization for key enablers such as smartphones and internet plans High 25Address and rationalize the difference between taxation rates for freelancers and engineers within the formal IT services sector to encourage the latter to remain in full-time industry jobs High 26The National Database and Registration Authority (NADRA) to enable in-app notifications or allow WhatsApp as an alternative to short message service (SMS) for one-time passwords (OTPs) on banking apps, especially for smartphone users, as the cost of an SMS has increased by 200% MediumDFDI pillars¹ DA ND DI OD High High Medium Low Enhance digital infrastructure to create a cost-effective and accessible digital ecosystem that can support the digital economyTHEME 4 Relevance Impact No. Option Effort Direct27Encourage the establishment of more tech hubs to provide individuals with access to infrastructure Low 28Showcase more success stories on global platforms by facilitating visits to international events (exhibitions, conferences, etc.) to improve the perception of Pakistan as a viable market for investors Low 29Designate entire cities that are digital investment leaders as STZs to expand STZ benefits to the entire IT industry Medium 30Scale infrastructure guarantees and provide concessional funding to support infrastructure projects Medium 31Re-evaluate and update the spectrum pricing model considering market dynamics and macroeconomic factors for sustainable pricing Medium 32Government to develop and successfully execute a realistic 5G plan High 33Boost local manufacturing and production of telecom equipment to reduce import dependence High 34Ensure incentives to reduce cost and effort around the import of telecom equipment High Indirect35Create a public start-up fund to ensure productive, accountable and efficient allocation of public funds High 36Promote the conversion of mobile phone masts to solar power to reduce cost and ensure connectivity HighDFDI pillars¹ DA ND DI OD High High MediumPolicy options to support Theme 3: Improve the business case for companies that are digital natives as well as digital adopters through a digital-centric tax regime Policy options to support Theme 4: Enhance digital infrastructure to create a cost-effective and accessible digital ecosystem that can support the digital economy Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 39