Shaza Fatima Khawaja highlights significant opportunities between Pakistan and China

Islamabad: Pakistani Minister of State for Information Technology (IT) and Telecommunications, Shaza Fatima Khawaja, on Tuesday afternoon highlighted the significant opportunities arising from the all-weather strategic cooperative partnership between Pakistan and China in the IT sector.

During her address at the opening ceremony of the Global Digital Economy Conference 2024, Khawaja emphasized that the China-Pakistan Economic Corridor (CPEC) is a cornerstone of bilateral cooperation, offering numerous opportunities for joint ventures and technology-driven initiatives.

The integration of digital technologies into CPEC projects promises to unlock new avenues for economic growth, job creation, and sustainable development.

Khawaja noted that the strategic partnership between Pakistan and China is opening unprecedented opportunities for collaboration in various fields within the IT sector. She pointed out the potential for joint ventures, knowledge exchange, networking opportunities, and skill development in areas such as artificial intelligence, cybersecurity, e-commerce, and digital infrastructure.

She also mentioned the significant opportunity presented by China’s vast IT market for foreign companies, including those from Pakistan, to expand their businesses and boost exports. The minister remarked that the flourishing partnership between Pakistan and China reflects a long-standing tradition of collaboration and mutual growth, especially as they explore the vast potential within the IT sector.

Khawaja highlighted the global digital revolution that has positioned the IT sector as a cornerstone of economic development, innovation, and social transformation. Recognizing this potential, both Pakistan and China have made substantial strides in harnessing the capabilities of the IT sector.

She cited Pakistan’s emergence as a powerful catalyst for economic growth in the IT sector, referencing Kearney’s Global Services Location Index of 2022, which ranks Pakistan as the most attractive destination for outsourcing. With around 20,000 registered IT and IT-enabled Services (ITeS) companies exporting to over 170 countries, the sector’s growth is robust.

The minister mentioned that 20 top IT companies from Pakistan are participating in GDEC 2024 and are expected to sign Memorandums of Understanding (MoUs) to enhance IT cooperation between China and Pakistan. She attributed this success to several key factors, including Pakistan producing approximately 75,000 IT graduates annually and offering offshore services at a 70% reduction in operational costs compared to Western destinations. The government’s support, through the Pakistan Software Export Board (PSEB), includes 100% equity ownership, 100% repatriation of capital and dividends, and income tax credits for IT exports to foreign investors.

Khawaja also highlighted Pakistan’s supportive infrastructure, including a strategic time zone favorable for global business operations, over 100 Software Technology Parks, and Special Technology Zones, which provide an enabling environment for innovation and growth. She noted that Pakistani IT companies offer diverse products and services, ranging from software development and cybersecurity to artificial intelligence and data analytics, which complement the strengths of global counterparts and pave the way for extensive collaboration.

She acknowledged China’s remarkable advancements in artificial intelligence, big data, cloud computing, and 5G technology, noting the significance of the Belt and Road Initiative and the Digital Silk Route project in building a connected and technologically advanced world. Khawaja expressed optimism about the future synergies between Pakistan and China, which could drive a digital renaissance benefiting both countries and the entire region.

The ongoing Global Digital Economy Conference serves as a catalyst for fostering meaningful collaborations, providing a platform for companies from both nations to explore joint ventures, share best practices, and engage in knowledge exchange. Khawaja emphasized that the forum is instrumental in navigating regulatory landscapes, addressing cross-border challenges, and promoting a conducive environment for sustainable business growth, ensuring fruitful discussions and productive outcomes.

She reaffirmed the Pakistani government’s commitment to supporting these collaborations, aiming to transform them into shining examples of win-win cooperation.

The main 4th GDEC will be held at the China National Convention Center in Beijing from July 2nd to 5th, 2024, under the theme “Embarking on a New Era of Digital Intelligence, Sharing a New Future of Digital Economy.”