- Prime Minister Shehbaz said the project aims to implement digital infrastructure.
- The Prime Minister says the project will focus on sectors likely to attract foreign investment.
- The Prime Minister says the country is moving towards a dynamic digital economy.
LAHORE: Prime Minister Shehbaz Sharif said Pakistan was the first country to implement the Digital Foreign Direct Investment (FDI) initiative, launched by the World Economic Forum (WEF) and the Digital Cooperation Organization ( COD).
According to a spokesperson, the Prime Minister said on Saturday that Pakistan’s first digital FDI project had made significant efforts to identify targets and promote digital progress. He explained that Pakistan’s Digital FDI project was a framework to implement digital infrastructure, digitalization and export of digital services.
It would focus on sectors that could attract foreign investment into the country, he added.
“This is an important step towards creating an investment-friendly environment in the country,” the Prime Minister said, adding that the country was moving towards a dynamic digital economy, which was an essential step for achieve lasting progress and prosperity.
Shehbaz noted that the initiative reflected the government’s commitment to fostering economic growth.
The country’s net FDI increased by 31 percent to $1.124 billion in the first five months of the current fiscal year.
Newsciting data released by the State Bank of Pakistan (SBP), last month reported a net FDI inflow of $219 million in November 2024. This represents a 27% increase from the $172 million during the same month last year and an increase of 65%. compared to the $133 million recorded in October this fiscal year.
The substantial growth in FDI reflects Pakistan’s success in attracting foreign investors, thanks to improving macroeconomic indicators.
According to SBP data, the majority of direct investments came from China, with FDI from Chinese companies increasing 60% to $469 million in the July-November period of FY25. from Hong Kong also increased by 44%, reaching $116 million.
The UK contributed $113 million in FDI from July to November FY25, compared to $100 million in the same period last year.
In terms of sector-specific investments, the power sector saw a significant increase of 51%, with FDI amounting to $454 million from July to November FY25. The financial sector received $249 million in FDI during this period, a slight increase from $247 million a year earlier.
FDI in the gas and exploration sector increased by 24%, reaching $125 million during the same period.