KARACHI-UNS/APP: Pakistan has become the first country to implement the Digital Foreign Direct Investment Initiative (DFDII), launched by the World Economic Forum (WEF) and the Digital Cooperation Organisation (DCO), Prime Minister Shehbaz Sharif said on Sunday.
According to a statement issued by the Prime Minister’s Office, the premier welcomed Pakistan’s inclusion in the World Economic Forum (WEF) and Digital Cooperation Organisation’s (DCO) joint Digital Foreign Direct Investment (FDI) Initiative.
“The initiative’s first digital FDI project aims to identify key targets and advance digital growth,” the premier said, adding, “It includes a framework focusing on digital infrastructure, digitisation, and the export of digital services.”
These efforts, the prime minister asserted, can incentivise FDI.
“Pakistan is moving towards a comprehensive digital economy, which is a step towards sustainable development and prosperity. This initiative reflects the Government of Pakistan’s commitment to fostering economic growth.”
“It is an important milestone towards creating an investment-friendly environment in the country,” the premier said, adding that the country was heading towards a vibrant digital economy, which was a vital step in achieving sustainable progress and prosperity.
The country’s net FDI rose by 31%, reaching $1.124 billion in the first five months of the current fiscal year.
The News, citing data released by the State Bank of Pakistan (SBP), reported last month a net FDI inflow of $219 million in November, 2024. This marks a 27% increase compared to $172 million during the same month last year and a 65% rise from the $133 million recorded in October of this fiscal year.
The substantial growth in FDI reflects Pakistan’s success in attracting foreign investors, driven by improving macroeconomic indicators.
According to the SBP’s data, the majority of direct investments originated from China, with FDI from Chinese companies rising by 60% to $469 million during the period from July to November FY25. Investments 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 during the same period last year.
In terms of sector-specific investments, the power sector saw a significant 51% increase, 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 rose by 24%, reaching $125 million during the same period.
