Shaza highlights govt’s digital push

ISLAMABAD: Pakistan is seeking to position itself as a regional hub for digital connectivity, logistics, and climate finance, but experts warned that attracting large-scale private investment will depend on policy predictability, commercially bankable projects, credible regulatory institutions, and consistent execution rather than ambition alone. The discussion took place here on Wednesday during the plenary session on “Innovate, Invest, Inspire: Powering the next wave of EU-Pakistan collaboration, ” moderated by Afsheen Shakoor, and featuring IT Minister Shaza Fatima Khawaja, Aamir Ahsan Khan of Ericsson, Laura Jalasjoki of the Global Green Growth Institute, Hasan Faraz of A. P. Moller Maersk, and Dr. Saira Siddiqui of MedIQ. Highlighting the government’s digital push, Shaza Fatima Khawaja said Pakistan has already operationalised cross-border data transit connectivity from China to Karachi through its optical fibre backbone, with additional routes planned toward Central Asia and Europe to establish a continuous regional data corridor. She said agreements with Central Asian states and support from development partners are positioning Pakistan as a future data transit hub linking regional markets. She described digital infrastructure as a “core enabler” of economic growth, arguing that Pakistan has laid strong foundations in connectivity, making it a timely opportunity for investment in the country’s digital economy. However, development finance and private sector participants stressed that infrastructure gains must be matched by policy discipline. They noted that investors prioritise predictability over perfection, requiring stable regulatory frameworks, clear long-term policy direction, and protection from abrupt changes over multi-year investment cycles. Speakers outlined that commercially viable project structures remain fundamental, warning that financial guarantees and blended finance instruments cannot compensate for weak fundamentals such as loss-making tariffs, discretionary taxation or unclear public sector obligations. Governance emerged as a critical pillar, with participants emphasising the need for strong, independent regulatory bodies capable of ensuring transparency, consistency, and effective dispute resolution. Investors, they said, rely on regulatory institutions—not ministries—once projects enter execution. The session also explored opportunities under Article 6 of the Paris Agreement, which allows countries to trade verified emission reductions. Participants said this could unlock new climate finance flows for Pakistan in sectors such as waste management, renewable energy, industrial efficiency, and e-mobility, provided robust measurement, reporting, and verification systems are in place. Industry representatives pointed to the transformative role of 5G, noting that its impact will extend beyond consumer connectivity to enable efficiency gains across manufacturing, agriculture, and healthcare, while supporting new digital innovation ecosystems. In the logistics segment, speakers stressed that Pakistan’s geographic advantage must be matched by operational reliability to attract global shipping players, highlighting vessel turnaround times, seamless customs processes, cost predictability, and consistent service delivery as key determinants. They emphasised that digitisation, institutional capacity and process efficiency—rather than infrastructure alone—will determine whether Pakistan can emerge as a competitive regional trans-shipment hub. Overall, the session signalled that Pakistan’s next investment cycle will not be driven by potential alone, but by its ability to deliver predictable policy, credible institutions, and consistent execution across sectors. Copyright Business Recorder, 2026

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