Digital transformation crucial for quick economic growth, says Minister of Planning

The Minister of Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, has recently praised the Overseas Investors Chamber of Commerce and Industry (OICCI) for their report on digital transformation in Pakistan. The report, titled “Recommendations for Digital Transformation in Pakistan,” was thoroughly discussed during a round table conference organized by the Ministry of Planning, Development, and Special Initiatives in Islamabad. The Minister has applauded the OICCI for producing a comprehensive report on digital transformation and for contributing to the country’s progress in this area. This news highlights the increasing recognition of digital transformation as a crucial factor for the economic growth of Pakistan.

During the event, President of OICCI, Amir Piracha, emphasized the significance of digitization and technological revolution for Pakistan’s economy. He stated that this movement presents a once-in-a-generation opportunity for the nation to overcome its current economic challenges. Piracha also pointed out that although Pakistan has the 4th largest freelancing economy globally, the revenue generated from it is comparatively low due to low hourly rates. He stressed the need for skill development and the identification of competitive advantages to specialize in 1-2 key areas to strengthen Pakistan’s digitized economy, citing the example of the Philippines, which has specialized in voice over phone technology.

OICCI report on Digital Transformation in Pakistan

At the conference, several prominent figures were in attendance, including Professor Ahsan Iqbal, the Minister of Planning, Development, and Special Initiatives, Dr. Najeeb Ullah, Member (S&T and ICT), Planning Commission, Dr. Mukhtar Ahmed, Chairman HEC, Dr. Nadeem ul Haque, Vice Chancellor PIDE, as well as representatives from the Ministry of IT, State Bank of Pakistan, FBR, PASHA, and KPITB. They endorsed the recommendations presented in the OICCI report and appreciated the organization for compiling a comprehensive set of recommendations for digitizing Pakistan’s economy. This endorsement and appreciation further highlight the importance of digital transformation in the country and the need for concerted efforts to realize its potential.

The OICCI report aims to set Pakistan on a path towards digital transformation and establish the nation as a key player in the region. It offers recommendations to various policymakers and stakeholders, including the Ministry of Information Technology and Telecommunications, State Bank of Pakistan, Federal Board of Revenue, and Higher Education Commission, among others. These recommendations cover several aspects of digital transformation and provide guidance to these organizations to help Pakistan realize its potential in the digital era. By involving different stakeholders, this initiative seeks to promote a collective effort towards digitizing the economy and creating a favorable environment for digital innovation and growth.

Recommendations for digitizing Pakistan’s economy

During the presentation, Saquib Ahmed, Country Managing Director SAP, and Sardar Abubakr, Chief Operating Officer Mobilink Microfinance Bank Ltd, highlighted the key recommendations of the OICCI report on various aspects of digital transformation. The report notes that currently, e-commerce comprises only 1% of the total retail market in Pakistan. However, implementing the recommendations provided in the report can lead to the creation of innovative employment opportunities for Pakistan’s young population and can potentially add $60 billion to the economy within the next 7 to 8 years. The report recommends a rapid increase in fiber optic broadband penetration, a focus on 4G penetration, and the need for an AI policy to supplement decision-making. Additionally, government departments, such as the FBR, should be encouraged to maximize the use of data analytics technologies. The report also highlights the need for an up-to-date cybersecurity law and strict enforcement of intellectual property rights to encourage global IT companies to set up base in Pakistan. These recommendations provide a roadmap for Pakistan to achieve a thriving digital economy and emerge as a regional leader in the digital space.

During the conference, the participants discussed key challenges that need to be addressed for Pakistan to embark on its digital journey and attract foreign direct investment (FDI) in this sector. Inconsistency in policies, technical skill gaps, and deficiencies in policy implementation and execution were identified as key challenges. Additionally, the current challenges on foreign exchange remittance were also highlighted by the participants. Addressing these challenges will be critical for Pakistan to establish a thriving digital economy and attract foreign investment in this sector.

In his concluding remarks, Professor Ahsan Iqbal, the Federal Minister, commended the OICCI for presenting its comprehensive recommendations to facilitate digital transformation in Pakistan. He gave an overview of the challenges facing the country and emphasized how digital transformation is critical to achieving substantial growth in exports and the economy. The Minister pledged his full support and formed a working group comprising representatives of the Ministry of Planning and Information Technology to regularly monitor progress towards implementing the key milestones outlined in the OICCI Digital Recommendations report. He expressed that such public-private partnerships are crucial for the long-term prosperity of the country and its population.

Challenges and opportunities for Pakistan’s digital economy

The OICCI is a group that represents the interests of large foreign investors in Pakistan, with over 200 members from 31 different countries across 14 sectors of the economy. They play a significant role in contributing to Pakistan’s economy, providing one-third of the country’s total tax revenue, transferring technology and skills, and creating employment opportunities. Many of these companies are also listed on the Pakistan Stock Exchange, and some are associated with the Global Fortune 500 companies. Apart from their business operations, the OICCI members are also active in fulfilling their corporate social responsibilities, contributing to various CSR activities that have benefited around 46 million people from underprivileged communities.

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