Digital Economy 2.0: A Game Changer for Pakistan.

China and Pakistan’s new phase of relations is focused on both economic growth and technological advancements, working together to create a world where technology enhances lives, fosters innovation, and unites nations.

Syed Ali Nawaz Gilani.

The recent visit of Prime Minister Anwaar ul Haq Kakar of Pakistan to China underscores the enduring friendship and strategic partnership between the two nations. China and Pakistan share a commitment to supporting each other’s interests, particularly on sensitive issues like Taiwan, the South China Sea, and matters of sovereignty and territorial integrity. At the core of this diplomatic engagement is the Belt and Road Initiative (BRI), which both countries consider a potent driver of global economic growth and a platform for international collaboration. Central to their collaboration is the China-Pakistan Economic Corridor (CPEC), a flagship project under the BRI. The leaders are determined to take CPEC to new heights, focusing on high-quality development across multiple sectors, including infrastructure, energy, and trade.

A significant aspect of this partnership is the development of Gwadar Port, a pivotal node in cross-regional connectivity. The two nations are set to fast-track its development, aiming to make Gwadar a high-quality port, a regional trade hub, and a vital connectivity point. Infrastructure development is another key facet, with various projects, such as the ML-1 upgradation, Karakoram Highway realignment, and the D.I. Khan-Zhob Road Project, all geared toward enhancing connectivity and driving socio-economic growth. Cooperation extends to renewable energy and industrial development, with a focus on win-win outcomes and the inclusion of third-party investors. The agricultural sector is also rich in potential, with plans for crop cultivation, pest control, and technology exchange. The digital economy takes center stage in their partnership, with cooperation on IT industry development and digital infrastructure construction. Additionally, socio-economic initiatives under the CPEC Working Group aim to enhance social and economic benefits. Both nations are eager to facilitate business exchanges and enhance bilateral people-to-people interactions while boosting cross-border trade, exemplified by the year-round operation of the Khunjerab pass. Financial cooperation and currency swap agreements are set to further strengthen their economic collaboration, while space science and technology cooperation will advance outer space exploration.

The leaders engaged in discussions on the situation in Jammu and Kashmir, emphasizing peaceful resolution in line with international agreements. Terrorism remains a common concern, and both countries are committed to bolstering their counter-terrorism efforts. Deep concerns over the Israel-Palestine conflict were expressed, with a shared call for an immediate ceasefire and a two-state solution. Their shared vision emphasizes peace, development, equity, justice, democracy, and freedom in their global initiatives. Defense and security cooperation is pivotal in maintaining regional peace and stability. Their support for the United Nations and a commitment to multilateralism underpin their diplomatic endeavors. Both the nations pledge to enhance coordination on Afghanistan to ensure regional peace and stability, sealing their commitment to a future of mutual cooperation and understanding.

China and Pakistan Pledge to Elevate Digital Cooperation for a Shared Digital Future. In a joint press statement released on 20th October 2023, during the recent diplomatic visit of Prime Minister Islamic Republic of Pakistan Mr. Anwaar ul Haq Kakar to China, both nations unveiled an ambitious plan to intensify cooperation in the information technology (IT) industry and digital infrastructure development. This strategic partnership will extend to cutting-edge technologies and capacity building for IT services, all with the aim of fostering high-quality development within the digital economy. The collaboration signifies a milestone in the enduring China-Pakistan friendship, further solidifying their all-weather strategic cooperative partnership.

The move towards strengthening cooperation in the IT sector reflects the commitment of both China and Pakistan to drive innovation and digital transformation in the new era. The two nations share a vision of a shared digital future that will propel Pakistan into the digital age and facilitate comprehensive economic growth and progress.

Indeed the Digital Economy is a Key Driver of Growth. Truly, the digital economy stands as a formidable engine propelling global growth into the future. In this age of technological marvels, China and Pakistan have joined hands in a visionary partnership, acknowledging the profound impact of the digital realm on the world’s economic landscape. It’s a recognition that transcends borders and speaks to the very heart of their collaboration – the digital domain as a pivotal catalyst for progress.

This venture is more than just a bilateral agreement; it’s a platform for international harmony and collaboration, echoing the harmonious melody of progress that spans the globe. With this partnership, the two nations are sowing the seeds of collective advancement and working towards a shared dream of a digital future that knows no boundaries.
In the digital age, the concept of a connected world becomes a living reality. The digital economy is more than a driver; it’s a vehicle steering us towards a new era of shared prosperity. China and Pakistan, in their shared vision, are constructing a framework that nurtures global economic synergy. This is a symphony of collaboration that harmonizes diverse nations and leads them towards the common goal of development.
As this digital journey unfolds, the building blocks of this brave new world come together. It’s a world where geographical limitations fade into insignificance, where cooperation transcends borders, and where economic growth becomes a collective endeavor. In their pursuit of a shared digital future, China and Pakistan are not merely nurturing their own economies but are also unlocking the door to international cooperation and progress.
Within this grand design, the focus on digital infrastructure is paramount. The infrastructure they are constructing is more than just wires and data centers; it’s the bedrock of modernization and technological evolution. The digital highway they envisage stretches beyond their own borders; it’s a route of opportunity for international cooperation and development. This infrastructure is the bridge that connects nations in the digital realm, uniting them in a shared journey towards a brighter future.
Furthermore, this partnership extends its embrace to cutting-edge technologies. In a world that is constantly evolving, innovation is the key. By engaging in joint research, technological exchange, and capacity building, China and Pakistan are planting the flag of progress on the peaks of innovation. They understand that breakthroughs in areas like artificial intelligence, blockchain, and quantum computing are not just ambitions; they are necessities for the future. And in the digital era, services are king. China and Pakistan are working together to enhance the quality and capacity of IT services. It’s not just about offering convenience to their citizens; it’s about elevating their position in the global digital landscape. By doing so, they not only offer better digital services but also become influential players in the global digital arena.
This collaborative commitment between China and Pakistan is not just about economic growth. It’s about mutual benefit and shared prosperity. The narrative goes beyond their own borders; it’s about enriching the lives of their citizens and contributing to the grand tapestry of global digital development. They are not building a digital future for themselves alone; they are crafting a world where digital advancements uplift societies, drive innovation, and unite nations. This is a story of global proportions, one in which the boundaries of possibility are defined by the extent of our collective imagination. In their partnership, we find the embodiment of a digital tomorrow that stretches beyond horizons, beyond borders, and beyond limits.
China and Pakistan recognize the significance of the digital economy as a potent driver of global economic growth. Through this cooperation, they are creating a platform for international economic synergy, fostering common development across the globe, and contributing to the realization of a community with a shared digital future for humanity.
The effort of building “Digital Infrastructure” is for Prosperity. Both the nations are keen to accelerate the development of digital infrastructure, paving the way for modernization and technological advancement. The digital highway they aim to construct will not only boost their own economies but also open up opportunities for international cooperation and development. One of the key aspects of this cooperation is the focus on cutting-edge technologies. By engaging in joint research, technological exchange, and capacity building, China and Pakistan are positioning themselves at the forefront of technological innovation. They recognize that breakthroughs in areas like artificial intelligence, block-chain, and quantum computing are pivotal for their continued growth. As part of collaboration, both nations will work together to enhance the capacity and quality of IT services. This will not only provide their citizens with access to improved digital services but will also bolster their role in the international digital landscape. The joint commitment of China and Pakistan to digital cooperation is built on the principles of mutual benefit and shared prosperity. Their combined efforts seek to enrich the lives of their citizens, contribute to global digital development, and lay the foundation for a digital future that transcends boundaries.
The new phase in China-Pakistan relations represents not only their commitment to economic and technological growth but also their shared vision for a world in which digital advancements uplift societies, drive innovation, and unite nations. As both countries journey into this digital age, the world watches with anticipation to witness the fruits of their collaborative endeavor in creating a digital tomorrow that knows no bounds.

The writer is a former banker and Secretary General of the Pakistan China Friendship Association, Khyber Pakhtunkhwa chapter. He is also a foreign affairs analyst and senior media consultant based in Peshawar, Pakistan. You can reach him at syeed.gilani@gmail.com.

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