Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja on Wednesday said Pakistan’s ongoing digital transformation under CPEC 2.0 carries significant potential to expand the national economy through data-driven policymaking, digitisation and growth in e-commerce.

Addressing the inauguration ceremony of the IBI Pakistan Digital Economy Headquarters, she said the initiative followed the prime minister’s visit to China in September last year, which led to consultations with relevant stakeholders and the establishment of the Digital Economy Headquarters at a Special Technology Zone.

She said the headquarters was a flagship initiative to strengthen high-priority economic cooperation between Pakistan and China. Operating under the China-Pakistan Economic Corridor (CPEC) framework, it integrates trade facilitation, investment promotion, supply chain digitisation, SME empowerment and policy dialogue under a unified execution platform.

She pointed out that Pakistan’s engagement with CPEC began in 2013 and Islamabad and Beijing had continued to deepen their partnership, with relations now extending beyond traditional diplomatic ties.

Fatima emphasised that Pakistan had entered a new phase of cooperation focused on improved execution of development initiatives. The completion of the Digital Economy Headquarters is part of a whole-of-government approach, supported by the Special Investment Facilitation Council (SIFC), which has helped address longstanding administrative and operational bottlenecks.

Outlining the Digital Nation Pakistan Act, the IT minister said it was built on three pillars – digital economy, digital society and digital governance, with the digital economy being the government’s top priority.

Pakistan’s gross domestic product (GDP) – the total size of the economy – exceeds $400 billion, with nearly half of it still within the informal sector. Citing industry estimates, she said digital transformation across sectors could add 5% to 7% to GDP by 2030, strengthening the case for accelerated digital adoption.

She highlighted Pakistan’s expanding digital ecosystem, including more than 200 million mobile subscribers and over 157 million mobile internet users, saying “this provides a strong foundation for e-commerce growth”.

Emphasising the importance of data-driven governance, the minister said future policymaking in both government and business sectors must rely on accurate data to ensure efficiency, transparency and improved planning.