Prime Minister Shehbaz Sharif recently emphasized the transformative potential of digital infrastructure in driving foreign direct investment (FDI) into Pakistan. Speaking on the country’s inclusion in the World Economic Forum (WEF) and Digital Cooperation Organisation’s (DCO) joint Digital FDI Initiative, he described the move as a pivotal step toward creating an investor-friendly environment.
“Pakistan is the first country to adopt the Digital FDI Initiative under the WEF framework,” PM Shehbaz announced. This groundbreaking project aims to lay the foundation for digital growth by prioritizing digital infrastructure, digitization, and the export of digital services. The initiative is part of a broader strategy to attract foreign investment and stimulate economic progress.
“Pakistan is moving towards a thorough digital economy, which is a step towards sustainable development and prosperity. This initiative reflects the Government of Pakistan’s commitment to fostering economic growth,” the Prime Minister said. He underscored the importance of this initiative in achieving long-term economic objectives and ensuring a more robust digital future for the nation.
Recent data from the State Bank of Pakistan (SBP) revealed a 20% increase in foreign direct investment during the first half of the current fiscal year (FY25). The country received $1.329 billion in FDI, up from $1.108 billion during the same period last year.While this growth is encouraging, experts note that the total influx remains below expectations and is insufficient to drive substantial economic conversion.
China maintained its position as the largest source of FDI in Pakistan, continuing its trend as the country’s top investor. The United Kingdom and Switzerland also contributed significantly, with investments of $130 million and $100 million, respectively. notably, no Arab countries made notable investments during this period.
despite the positive macroeconomic indicators—such as exchange rate stability, a current account surplus, and higher foreign exchange reserves—political uncertainty continues to deter foreign investors. Financial analysts argue that addressing these concerns is essential to unlocking Pakistan’s full investment potential.
PM Shehbaz’s focus on digital transformation aims to mitigate these challenges by creating a more attractive and stable environment for global investors. By leveraging digital innovation and infrastructure, Pakistan seeks to position itself as a hub for foreign investment and economic growth in the region.
