Latest news with #DigitalForeignDirectInvestment
Express Tribune
21-05-2025
- Business
- Express Tribune
IT reforms sought to halt exodus
P@SHA has said that the govt will have to decide the future course – either develop the country as a digital powerhouse or remain confined as skilled individuals leave the country. photo: file Listen to article The information technology (IT) sector has warned the government that companies will shift to other countries if favourable policies are not introduced and changes are made in the existing tax regime. Addressing a news briefing on Tuesday, Pakistan Software Houses Association (P@SHA) Chairman Sajjad Syed said that investments were not brought into the country by the government in public sector industries. "Investments are invited by the private sector and the government functionaries have to be facilitators; this includes branding, infrastructure development, skill development as well as the tax and fiscal regime," he said. Syed pointed out that currently Pakistan had one of the highest tax rates and negligible certainty about the consistency of policies. He said corporate income tax was 29% in Pakistan, whereas it was as low as 9% in the United Arab Emirates (UAE) and 25% in Vietnam, which had annual IT exports of $141 billion. Other taxes and input costs were also high in Pakistan. Syed added that the IT industry had demonstrated resilience in the face of economic turbulence, contributing $3.2 billion in exports in financial year 2023-24 and it was projected to close the current fiscal year at nearly $4 billion. "An estimated $15 billion export potential is projected by 2030, but more promising numbers can be achieved if there is policy consistency, a long-term taxation regime and operational facilitation by the government to boost investor confidence," the P@SHA chairman remarked. Among the issues highlighted by the association were the need to align tax treatment between the employees of local IT firms and the independent remote workers employed by foreign companies. P@SHA asked the government to formally define remote workers in the Income Tax Ordinance 2001 as the lacuna was forcing IT companies to collect an additional 30% income tax from employees earning over Rs2.5 million annually, whereas those working for international clients did not have to pay high taxes. "This high income tax on local companies has encouraged international competitors to hire the same human resources in Pakistan at higher wages and even save some amount by paying a low income tax," Syed added. P@SHA also demanded that the government ensure continuity in tax policy and added that the IT sector in Pakistan was still in its formative growth stage. He added that policy stability was essential for sustaining the momentum and referred to a Digital Foreign Direct Investment (DFDI) event, where over $700 million worth of investment commitments were made, of which $600 million was facilitated by P@SHA. "If the tax regime is changed in the upcoming budget, there will only be two choices: either the clients leave Pakistani companies as the cost of business will increase or we shift to any conducive market like the UAE, Vietnam or the Philippines," Syed said. P@SHA has said that Pakistan's IT sector employs over 600,000 skilled human resources, but the government has to decide the future course – either develop the country as a digital powerhouse by promoting artificial intelligence or remain confined at the secondary level as high-end skilled individuals will leave the country to seek jobs abroad.
Cision Canada
13-05-2025
- Business
- Cision Canada
MindHYVE.ai™ Commits $22M FDI to Pakistan, Launches National AI Digital Transformation Push
ISLAMABAD and NEWPORT BEACH, Calif., May 13, 2025 /CNW/ -- a California-based artificial intelligence company competing with OpenAI and Google in the AI space with a unique suite of large reasoning models and AGI agents has announced a $22 million foreign direct investment into Pakistan to establish it as a global hub for applied AI innovation. The announcement was made by Founder & CEO Belal Faruki during the Digital Foreign Direct Investment (DFDI) Conference, which took place April 29–30, 2025, in Islamabad, Pakistan, in the presence of Prime Minister Shehbaz Sharif, federal ministers, international delegates, and global tech leaders. "This isn't outsourcing—this is digital nation-building," said Belal Faruki. "We're not just bringing capital—we're bringing our most advanced agentic, autonomous systems, large reasoning models, AI knowhow and co-creating sovereign AI solutions with Pakistan." Key Strategic Initiatives outlined a five-year plan to: Launch three AI Labs in Islamabad, Lahore, and Karachi for R&D, workforce training, and entrepreneurship. Seed 20–30 AI-powered startups across strategic verticals. Hire 1,500–5,000 professionals, empowering them with AI fluency to scale local expertise. Expand AI in education, including pilots in Kohat and the upcoming national deployment of ArthurAI™, a revolutionary AGI-powered learning platform. Deploy agentic systems in healthcare, enabling precision diagnostics, intelligent treatment planning, and improved patient outcomes. Partner with NGOs, the Higher Education Commission, Federal Ministry of Education, SIFC and other ministries to implement AI across public sector operations. Pakistan: The First AGI Frontier This investment represents the first national-scale deployment of U.S.-engineered agentic systems—placing Pakistan at the forefront of sovereign AI development. The delegation was later hosted at a private dinner by Prime Minister Shehbaz Sharif at the Prime Minister's House, where long-term digital infrastructure partnerships were further explored. Pakistan has the population, the talent, and now the technology," said Belal Faruki. "This is digital self-determination in action." About Headquartered in Newport Beach, California, builds domain-specific AGI agents, autonomous and semi-autonomous agentic systems, and domain specific large reasoning models to transform national infrastructure and industry through intelligent automation and decision systems.
Yahoo
13-05-2025
- Business
- Yahoo
MindHYVE.ai™ Commits $22M FDI to Pakistan, Launches National AI Digital Transformation Push
ISLAMABAD and NEWPORT BEACH, Calif., May 13, 2025 /CNW/ -- a California-based artificial intelligence company competing with OpenAI and Google in the AI space with a unique suite of large reasoning models and AGI agents has announced a $22 million foreign direct investment into Pakistan to establish it as a global hub for applied AI innovation. The announcement was made by Founder & CEO Belal Faruki during the Digital Foreign Direct Investment (DFDI) Conference, which took place April 29–30, 2025, in Islamabad, Pakistan, in the presence of Prime Minister Shehbaz Sharif, federal ministers, international delegates, and global tech leaders. "This isn't outsourcing—this is digital nation-building," said Belal Faruki. "We're not just bringing capital—we're bringing our most advanced agentic, autonomous systems, large reasoning models, AI knowhow and co-creating sovereign AI solutions with Pakistan." Key Strategic Initiatives outlined a five-year plan to: Launch three AI Labs in Islamabad, Lahore, and Karachi for R&D, workforce training, and entrepreneurship. Seed 20–30 AI-powered startups across strategic verticals. Hire 1,500–5,000 professionals, empowering them with AI fluency to scale local expertise. Expand AI in education, including pilots in Kohat and the upcoming national deployment of ArthurAI™, a revolutionary AGI-powered learning platform. Deploy agentic systems in healthcare, enabling precision diagnostics, intelligent treatment planning, and improved patient outcomes. Partner with NGOs, the Higher Education Commission, Federal Ministry of Education, SIFC and other ministries to implement AI across public sector operations. Pakistan: The First AGI Frontier This investment represents the first national-scale deployment of U.S.-engineered agentic systems—placing Pakistan at the forefront of sovereign AI development. The delegation was later hosted at a private dinner by Prime Minister Shehbaz Sharif at the Prime Minister's House, where long-term digital infrastructure partnerships were further explored. "Pakistan has the population, the talent, and now the technology," said Belal Faruki. "This is digital self-determination in action." About Headquartered in Newport Beach, California, builds domain-specific AGI agents, autonomous and semi-autonomous agentic systems, and domain specific large reasoning models to transform national infrastructure and industry through intelligent automation and decision systems. 📍 | 📧 hello@ | ☎ +1 (949) 200-8668 Media Contact: Marc Ortiz | View original content to download multimedia: SOURCE Inc. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
04-05-2025
- Business
- Express Tribune
Can Pakistan seize its digital moment?
Pakistan, by contrast, has opted out of the ITA, one of the world's most successful digital trade agreements, whose membership has grown to 86 countries accounting for over 97% of global digital trade.: photo: file Listen to article Just as Pakistan earned global recognition for its pivot to solar energy, it is now positioning itself as a rising force in the digital economy. Named "Tech Destination of the Year" at GITEX Global 2024, Pakistan justified this award by co-hosting the first-ever Digital Foreign Direct Investment (DFDI) 2025 Conference in partnership with the Saudi-led Digital Cooperation Organisation. The high-profile event attracted over 400 delegates and more than 200 tech companies from 30+ countries, resulting in investment commitments surpassing $700 million — a clear signal of growing international confidence in Pakistan's digital potential. These milestones are not isolated achievements but part of a broader digital transformation taking shape across the country. Nowhere is this more evident than in export performance. While merchandise exports remain sluggish— losing over 1.5% in global export share annually for the last two decades and falling behind regional competitors — Information Communication Technology (ICT) services are charting a different trajectory. Last year, ICT export remittances reached $3.223 billion, and in the first nine months of the current financial year, they grew by an impressive 28% year-on-year. The sector, requiring virtually no imported raw materials apart from computers, channels the majority of its export earnings into the national trade surplus. In FY2023-24, this surplus amounted to $2.827 billion — approximately 88% of total ICT remittances. However, if Pakistan wants to build on this success and capture a meaningful share of the global digital services market, it must look outward as other successful countries are doing. For example, the United Arab Emirates (UAE) exported over $$48 billion in digital services in 2023 — more than fifteen times Pakistan's current ICT export volume. The UAE's achievements are rooted in its global digital engagement, including membership in the World Trade Organization (WTO) Information Technology Agreement (ITA) and its leadership in AI-driven trade policy frameworks. Pakistan, by contrast, has opted out of the ITA, one of the world's most successful digital trade agreements, whose membership has grown to 86 countries accounting for over 97% of global digital trade. The only requirement for membership is to eliminate tariffs on IT products — yet Pakistan remains among the few countries, mostly from Africa, that continue to forgo the long-term gains for nominal tariff revenues. In parallel, the WTO members are negotiating a landmark E-commerce Agreement aimed at establishing global rules for digital trade. The agreement is set to facilitate cross-border electronic transactions, reduce regulatory and technical barriers, and promote innovation in e-commerce. Unfortunately, Pakistan has once again chosen to remain on the sidelines, missing another opportunity to align itself with the future of global commerce. The real challenge now is whether Pakistan can abandon its isolationist mindset and build an innovation-driven economy or whether it will repeat the policy failures that crippled its goods exports. In the digital sector, traditional trade barriers may not exist, but self-imposed restrictions — like the past ban on YouTube and the ongoing blockade of X (formerly Twitter) — pose a similar threat. These platforms are vital for digital outreach, entrepreneurship, and global visibility. Blocking them undermines investor confidence and deters foreign interest in Pakistan's tech ecosystem. To avoid repeating past mistakes, Pakistan must adopt a proactive, globally integrated digital trade strategy. This means engaging with multilateral digital agreements, opening markets, and fostering cross-border collaboration. Encouragingly, the Ministry of Information Technology is well-positioned to lead this shift. It is led by a dynamic young minister and supported by a Federal Secretary who is an industry expert rather than a career bureaucrat. Pakistan stands at a digital crossroads. Its recent recognition and growth in ICT exports have created a window of opportunitybut unless accompanied by global integration, enabling regulation, and policy coherence, this momentum may prove short-lived. To secure its digital future, Pakistan must shift from cautious optimism to bold action. THE WRITER IS A SENIOR FELLOW AT THE PAKISTAN INSTITUTE OF DEVELOPMENT ECONOMICS (PIDE) AND HAS PREVIOUSLY SERVED AS PAKISTAN'S AMBASSADOR TO THE WTO AND THE FAO'S REPRESENTATIVE TO THE UNITED NATIONS IN GENEVA
Business Recorder
01-05-2025
- Business
- Business Recorder
Investor confidence: Minister praises SIFC for being key driver
ISLAMABAD: Federal Minister for Information Technology Shaza Fatima Khawaja on Wednesday praised the Special Investment Facilitation Council (SIFC), describing it as a key driver in restoring investor confidence through its 'whole-of-government' approach. Speaking at the two-day Digital Foreign Direct Investment (DFDI) conference, Khawaja credited the military-backed initiative with streamlining decision-making and fostering a coordinated environment that reassures both local and foreign investors. 'The SIFC's whole-of-government approach has significantly contributed to building investor confidence in Pakistan,' she added. She said Pakistan is ready to become a hub of technology and digital investment, adding strong public-private partnerships, progressive policies, and a growing number of skilled IT professionals as key strengths. 'Today, we can proudly say that if you invest in Pakistan, we will make sure the magic happens for you,' she said, emphasising the need for continued collaboration between the public and private sectors, international partners, and development organisations to unlock Pakistan's full potential – not only in IT but also in agriculture, healthcare, finance, education, and manufacturing. 'Technology is no longer limited to one sector. It now plays a role in every field and is essential for overall development,' she added, noting that the digital shift brings both challenges and new opportunities for growth. Khawaja highlighted Pakistan's demographic advantage, with nearly 150 million young people under the age of 30, which she said gives the country a promising future in digital innovation. She also outlined key policy initiatives, including the Digital Nation Pakistan Act, the National AI Policy, the Cybersecurity Policy, the development of technology parks and special technology zones, and support for a strong startup ecosystem and the transition to a cashless economy. 'Pakistan now offers a complete digital ecosystem driven by leadership, vision, and talent. We are no longer followers—we are ready to lead,' she said. She credited the prime minister's leadership for steering these efforts and noted that around 75,000 IT graduates and 300,000 certified professionals join the workforce every year, providing a solid base for growth. She announced that Pakistan will assume the presidency of the Digital Cooperation Organization (DCO) in 2026 and expressed hope for expanding regional technology corridors to ensure access to markets, talent, capital, and best practices. Khawaja also thanked the Trade Development Authority of Pakistan, Ministry of Commerce, local administration, security agencies, and especially the private sector for their support. Speaking at a presser, Secretary General of DCO Deemah AlYahya commended Pakistan for championing DFDI. She emphasised that Pakistan's leadership role would not only advance the nation's technological infrastructure but also enable it to support other countries in their digital growth. She said the presidency of Pakistan for DCO in 2026 is a continued effort to position the country as the digital powerhouse for the region and the world, adding the DCO is working to open markets for enterprises across all member states, fostering cross-border collaboration. Pakistan, she noted, will play a key role in driving these advancements. AlYahya also expressed optimism about Pakistan's growing digital sector, particularly the youth-driven innovation. 'Seeing the youth and the growth in Pakistan's digital sector gives us a great sense of optimism,' she said. 'It motivates us to collaborate with all our member countries and utilise the advancements in each nation.' She highlighted the importance of identifying each country's competitive advantages to address global challenges, noting that DCO's role is to pinpoint these strengths and areas for improvement. She pointed to the Digital FDI event in Pakistan as an example of how the country's infrastructure, youth talent, and advancements in software and hardware could attract private sector investment and harness new opportunities. 'The Digital FDI event here in Pakistan is a prime example of how we can leverage Pakistan's competitive advantages to create global opportunities,' she added. The two-day moot concluded with a strong pledge to position Pakistan as a regional leader in technology, information technology (IT), and information and communication technology (ICT). The event saw participation from more than 45 countries, with over 40 international companies and startups showcasing their products. Around 35 ministers and official delegations from various countries attended, along with over 30 global speakers and more than 50 CEOs from leading IT firms. Organised by the Ministry of IT and Telecommunication in collaboration with the DCO, the DFDI Forum 2025 was aimed to promote Pakistan as a key destination for digital investment and innovation. The forum brought together investors, policymakers, industry leaders, and tech experts from around the world to explore opportunities in the growing digital economy. Copyright Business Recorder, 2025
