Digital FDI Initiative Pakistan 2025

To initiate the project, introductory meetings were held to align key objectives with Government of Pakistan counterparts. A desk review was conducted to assess the policy and regulatory environment, FDI trends and developments in the technology and investment landscape. This review also identified key stakeholders and provided a detailed analysis of factors influencing digital FDI in Pakistan.To improve understanding, a comprehensive consultative exercise was undertaken with 70 key stakeholders, both local and international, throughout the digital ecosystem. Of these, 65 consultations were held in person in Islamabad, Lahore and Karachi, while the remaining five were conducted virtually. The stakeholder groups engaged in these consultations are outlined below: Sectoral and numerical breakdown of stakeholder groups engaged in the project’s consultative phaseTABLE 1 Stakeholder Consultations held Federal institutions 13 Provincial institutions 4 Investors 7 Businesses 15 Business associations 4 Banks 2 Development partners 5 Incubators 2 Civil society organizations 1 Academia 4 Subject-matter experts 13 Total 70 Additionally, a survey aimed to identify enabling factors that influence firms’ decisions to invest in Pakistan’s digital economy. The survey was taken by 100 firms that have invested in the country’s digital economy in various sectors, including information technology (IT), telecom, e-commerce and electronics and financial services. This consultative and data-gathering process identified 55 policy options as possible recommendations for addressing gaps in Pakistan’s digital ecosystem and attracting more digital FDI. These insights were consolidated in a Findings Note that was reviewed by government partners and key industry stakeholders and presented to participants at the consultative workshop. The 55 policy options were collectively prioritized to establish six priority actions through the workshop, which provided a platform for stakeholders to collaboratively identify critical issues, prioritize interventions and align on the next steps for enabling digital FDI growth. A technical working group (TWG) with representation from the project team and Government of Pakistan partners was formed after the workshop. This group was mandated to work through the next steps to support implementation of the chosen policy priorities and actions. Action plans for each of the six priority areas have been drafted and are awaiting approval by the BOI and MoITT, after which the project will move into its implementation phase. The six priority actions are as follows: 1. Promote private-sector projects based on sectoral priorities and ticket size to connect local players with international investors/partners. 2. Increase the role of the Prime Minister’s Office in supporting a holistic agenda and the implementation of digital economy priorities (in particular, investor confidence through an improved enabling environment). 3. Enhance human capital by bridging the industry–academia gap to improve digital skill sets through advanced education and internationally accredited training programmes. Digital FDI Initiative: Digital FDI-Enabling Project in Pakistan 8