Pakistan Becomes First to Launch Digital Foreign Direct Investment Initiative

Pakistan has become the first nation to implement the Digital Foreign Direct Investment (FDI) Initiative, a collaborative effort between the World Economic Forum (WEF) and the Digital Cooperation Organization (DCO). Prime Minister Shahbaz Sharif announced the milestone on his official Twitter account, underscoring Pakistan’s resolve to establish a resilient and dynamic digital investment ecosystem.

Proud to witness Pakistan as the first country to implement the Digital Foreign Direct Investment Initiative, a @dcorg and @wef collaboration for driving cross-border digital investment.

From expanding revenues to increasing workforce and global exports, Pakistan is scaling new…

— Shehbaz Sharif (@CMShehbaz) January 18, 2025

This strategic initiative seeks to boost digital investments across borders, especially in developing markets. The Digital FDI-Enabling Project (DEP) in Pakistan centres around four essential pillars:

1. Digital Infrastructure: Developing robust digital frameworks to support technological growth.
2. Digital Adoption: Encouraging the integration of digital services across various sectors.
3. New Digital Activities: Facilitating the emergence of innovative digital enterprises.
4. Services Exports: Expanding the export of digital services to global markets.

This initiative is part of Pakistan’s broader digital transformation journey. The digital public infrastructure (DPI) commitment has already been practical within the country and has brought positive impacts such as financial inclusion to the citizens. For example, the National Database and Registration Authority (NADRA) of Pakistan has developed a fully functional digital identity system that covers more than 240 million residents to perform different operations and receive services.

The partnership of WEF and DCO highlights the necessity to build ‘digital-friendly’ investment environments. Thus, to encourage and support digital FDI, Pakistan has focused on introducing suitable policies and actions that will help the country not only acquire capital but also knowledge, technology, and experience.

With Pakistan leading the way in this initiative, it establishes a benchmark for other developing economies, creating a global environment that encourages digital advancement and creativity.