Ayesha Saba

China’s advancements in digital economy and e-governance offer valuable insights for Pakistan. By creating a supportive environment for technology, implementing favorable regulations, nurturing startups, and investing in sustainable technologies, Pakistan can drive innovation and enhance inclusivity and efficiency in its economic growth. Asfand Yar Khan, Director General (IT) at the Ministry of Information Technology and Telecommunication, shared these views with WealthPK. He emphasized that China's success is largely due to fostering an environment conducive to technology adoption and innovation. “Pakistan can learn from this by developing policies that promote data privacy, cybersecurity, and ease of doing business. Simplifying bureaucratic processes and reducing regulatory hurdles can encourage more entrepreneurs and startups to enter the market,” he elaborated. He pointed out that China's vibrant startup ecosystem, supported by government initiatives and private investment, has spurred innovation and economic growth.

He stressed the importance of nurturing a similar ecosystem in Pakistan, which includes providing financial incentives, tax breaks, and mentorship programs for startups. Establishing incubators and accelerators can also help young companies scale and succeed. He also highlighted the importance of international dialogue and exchange of best practices for global digital economic development, advocating for more collaborative efforts among countries to share successful strategies and technologies. “Collaboration and knowledge exchange are essential for fostering global growth. By learning from China’s experiences, Pakistan can tailor strategies to their unique contexts and accelerate their own digital transformations,” he said. Recently, Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal proposed a four-pronged approach—alignment, collaboration, innovation, and knowledge sharing—to align national development strategies with regional and global initiatives.

Iqbal emphasized that innovation is crucial for sustainable development, calling for investment in research, clean energy, agriculture, and digital infrastructure to accelerate progress. He stressed the need for an enabling environment for technology, supportive regulations, and a robust startup ecosystem to promote sustainable technologies. A recent survey by the Pakistan Software Export Board (PSEB) revealed significant growth in the ICT sector. Over 20,000 IT and IT-enabled Services (ITeS) companies are registered with the Securities and Exchange Commission of Pakistan (SECP). The ICT export remittances increased from $339 million to $2.283 billion during FY2024 (July-March), compared to $1.944 billion the previous year. In March 2024 alone, ICT services export remittances surged to $306 million, a 36% increase from March 2023. The IT and ITeS industry achieved a trade surplus of $1.996 billion, the highest among all services, while the overall services sector recorded a trade deficit.

Credit: INP-WealthPk