Digital transformation under CPEC 2.0 can support growth, says Shaza Fatima

ISLAMABAD: Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja said on Wednesday that Pakistan’s ongoing digital transformation under CPEC 2.0 has substantial potential to expand the economy through data-based policymaking, digitisation and the growth of e-commerce.

She was speaking at the inauguration of the IBI Pakistan Digital Economy Headquarters, which she said followed Prime Minister Shehbaz Sharif’s visit to China in September last year. According to the minister, that visit led to consultations with relevant stakeholders and eventually to the establishment of the Digital Economy Headquarters at a Special Technology Zone.

Fatima described the headquarters as a flagship initiative aimed at reinforcing high-priority economic cooperation between Pakistan and China. She said the platform, operating within the China-Pakistan Economic Corridor framework, brings together trade facilitation, investment promotion, supply chain digitisation, SME empowerment and policy dialogue under a single execution mechanism.

She noted that Pakistan’s engagement with CPEC began in 2013 and said cooperation between Islamabad and Beijing had continued to deepen over time, with ties now extending beyond conventional diplomatic relations. The minister said Pakistan had entered a new stage of cooperation centred on better execution of development initiatives.

She added that the completion of the Digital Economy Headquarters reflected a whole-of-government approach backed by the Special Investment Facilitation Council (SIFC), which, she said, had helped remove longstanding administrative and operational bottlenecks.

Digital Nation Pakistan Act

Outlining the Digital Nation Pakistan Act, the minister said the law rests on three pillars: digital economy, digital society and digital governance. She said the digital economy remained the government’s foremost priority.

Fatima said Pakistan’s gross domestic product exceeds $400 billion, while nearly half of the economy still remains in the informal sector. Referring to industry estimates, she said digital transformation across sectors could add 5% to 7% to GDP by 2030, underscoring the case for faster digital adoption.

She also highlighted the country’s growing digital base, saying Pakistan has more than 200 million mobile subscribers and over 157 million mobile internet users.

Emphasising the role of evidence-based governance, the minister said future policymaking in both the public and private sectors would need to rely on accurate data to improve efficiency, transparency and planning.

The inauguration of the IBI Pakistan Digital Economy Headquarters comes as the government places greater emphasis on digital economy initiatives under CPEC 2.0 and seeks to align trade, investment and technology-related cooperation with broader economic priorities.