Ayesha Saba

Pakistan's digital trade sector is experiencing significant growth thanks to the initiatives taken by the government aimed at enhancing the country's information technology infrastructure and exports. In an interview with WealthPK, Asfandyar Khan, Director General of IT Ministry of Information Technology and Telecommunication, noted a significant uptick in digital trade activities across various sectors. “Through strategic initiatives and policy reforms, Pakistan has bolstered its position as a favourable destination for digital investment and trade partnerships,” he said. He stressed that one of the key initiatives was the government's focus on developing digital infrastructure. “Investments in high-speed internet connectivity and digital payment systems have laid the foundation for a thriving digital ecosystem,” he said. He highlighted that Pakistan has recently launched the Pakistan Startup Fund (PSF) to stimulate venture investments and elevate Pakistani startups to prominent positions on the global stage.

“The government has allocated Rs2 billion for PSF,” he added. Asfandyar further said that the bulk of investment pouring into the tech industry predominantly went to fintech and e-commerce. “The fintech sector in Pakistan is experiencing notable momentum, propelled by factors such as rising smartphone adoption, a significant unbanked demographic, and government efforts aimed at advancing digital financial services. “Startups concentrating on digital payments, peer-to-peer lending, and blockchain-driven solutions are poised to expand continuously in coming years.” “Moreover, efforts to promote e-commerce and digital entrepreneurship have provided avenues for small and medium-sized enterprises to participate in the digital economy, driving inclusive growth and employment opportunities.”

Meanwhile, an official from Trade Development Authority of Pakistan told WealthPK on condition of anonymity that digital trade plays a crucial role in the European Union's trade policy, with dedicated chapters in every modern trade agreement. “As the largest exporter and importer of digitally deliverable services, the EU offers a significant opportunity for Pakistan.” “Pakistan should therefore prioritise negotiating a digital trade agreement with the European countries. “Such an agreement would provide Pakistan's IT entrepreneurs with direct and preferential access to developed economies. This access could potentially lead to sustainable and continued business growth.” ICT export remittances surged to $2.593 billion during the July-April period of FY24 from $2.135 billion over the same period in FY23. In comparison to March 2024, ICT services export remittances increased by $4 million (1.31% growth) in April 2024.

Credit: INP-WealthPk