In an era where digital transformation is reshaping economies worldwide, Pakistan stands at a critical juncture.

The digital sector has long been recognised as a key segment for foreign direct investment (FDI), yet Pakistan has struggled to attract substantial digital FDI compared to regional peers like India or Indonesia.

Over the past decade, Pakistan’s digital FDI has experienced volatility, with a brief peak in 2020 due to Covid-19-driven investments. However, by the fiscal year 2022, the information technology (IT) and telecommunication sector’s contribution to total FDI had fallen to just six per cent, a stark decline from 25pc in 2020. Key factors such as macroeconomic instability, regulatory uncertainty, and currency fluctuations have significantly contributed to this slowdown.

Recognising these challenges, Pakistan has taken a significant step by implementing the ‘Digital FDI Initiative’, a project launched by the World Economic Forum (WEF) and the Digital Cooperation Organisation in 2022. This initiative aims to address the core barriers to digital investment, ensuring that Pakistan emerges as an attractive destination for foreign investors in the digital economy. Among the critical aspects of this initiative, intellectual property (IP) rights have been identified as a decisive factor influencing digital FDI.

Pakistan must address significant challenges in attracting FDI and updating IP laws to encourage long-term digital investment

Understanding the gaps in digital FDI landscape

Despite having significant potential, Pakistan’s digital sector faces numerous challenges in........

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