ISLAMABAD: Deputy Prime Minister (DPM) and Minister of Foreign Affairs Senator Ishaq Dar has stressed the need for revising the National Finance Commission (NFC) Award and phasing out overlapping federal bodies that contradict the spirit of devolution.
While addressing the final session of the 38th Annual General Meeting and Conference of the Pakistan Society of Development Economists (PSDE), he said that as per the 18th constitutional amendment various federal bodies should be transferred to the provinces.
Dar highlighted the need for provinces to demonstrate tangible results now that they hold greater autonomy and fiscal resources. He said that provinces should take full responsibilities in health, education, social, policing and other sectors after the devolution.
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He said that strengthening of federating units is inevitable for a strong federation, saying the provinces were given autonomy under the 18th constitutional amendment.
Dar said Pakistan is blessed with immense natural resources, with all provinces having unique strengths and potentials. He said these provincial strengths should be optimally utilised for the development of the country, adding the continuity of policies and political stability are necessary for development of the country.
The PSDE conference was organised by the Pakistan Institute of Development Economics (PIDE) in collaboration with the Ministry of Planning, Development and Special Initiatives, the Asian Development Bank (ADB), Pakistan Poverty Alleviation Fund (PPAF), Research for Social Transformation and Advancement (RASTA), CPEC Centre of Excellence, and the Bank of Punjab.
Dar emphasised the pivotal role of provincial governments in shaping Pakistan’s digital future.
He stressed the importance of digitisation at the grassroots level, advocating for smart schools, e-governance, and real-time data systems as essential tools for national development.
He called for innovation to be led by provinces, citing examples such as digital agriculture in KP, education reforms in Gilgit-Baltistan, and climate resilience in Sindh.
Senator Dar reiterated the urgency of revising the NFC Award and phasing out overlapping federal bodies that contradict the spirit of devolution. He ended his address with a compelling call for collaborative action, stating, “When Pakistan takes flight, every province must lift.”
Also addressing the audience was Minister for Planning, Development and Special Initiatives Ahsan Iqbal, who congratulated PIDE for successfully hosting the conference. He stressed the importance of transforming research into action and urged that the conference’s recommendations be synthesised into concrete, implementable policies. Iqbal encouraged provincial governments to assume active roles in the country’s socio-economic development and emphasised the need to close the gap between “knowing and doing.”
Earlier in the day, the prestigious Mahbubul Haq Memorial Lecture was delivered by Mohammad J Sear, EY MENA’s Digital Government and Public Sector Leader. His lecture, titled, “Rethinking Sovereignty in the Digital Age,” challenged traditional definitions of state power in an increasingly digitised world. He argued that in the modern era, sovereignty includes control over data, digital infrastructure, and cyber platforms—areas where global tech giants often wield more power than states. Sear advocated for Pakistan to invest in sovereign digital ecosystems and AI development to safeguard its autonomy and economic future.
Chairing the session, Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister, echoed these sentiments and described data as “the new oil.” He updated the audience on legislative efforts to enable a cashless economy and promote national data governance.
Suring a panel discussion on “CPEC 2.0: Digital Leap – Learning China’s Transformation,” moderated by Dr M Muzammil Zia, experts including Prof Yuan Li of Shandong University and Mahmood Khalid of PIDE emphasised the shift from infrastructure-led growth under CPEC 1.0 to innovation and knowledge exchange under CPEC 2.0. Prof Li outlined China’s successful model of using policy-driven innovation to transform its economy and encouraged similar steps in Pakistan.
Dr Manzoor Ahmad advocated for digitalising Pakistan’s economy to empower SMEs and boost competitiveness. Ahmed Masud from Huawei highlighted the success of Huawei’s Islamabad-based global resource centre and advocated for deeper Pakistan-China digital collaboration.
Other panelists, including Dr Hassan Waqar of NUST, stressed the need for policy consistency and strong educational governance to achieve digital transformation.
In the session on “Digital Disruption: Economic Readiness,” chaired by Waqas Anwar researchers highlighted Pakistan’s lag in digital infrastructure, education, and regulatory frameworks compared to regional peers. One study projected that comprehensive reforms in these areas could boost Pakistan’s GDP growth by 1.8 percent annually by 2030. Other presentations emphasized the benefits of digital payments, the importance of financial literacy especially for women and rural users—and the need to build comprehensive knowledge ecosystems to reach Pakistan’s trillion-dollar economic ambitions.
Another technical session on “E-Governance for Economic Growth,” moderated by Dr Tallat Anwar, covered mobile banking adoption in Khushab, the potential of block-chain in Islamabad’s real estate market, and the impact of legal frameworks on entrepreneurial ecosystems. The session emphasized tailored digital strategies for rural populations, regulatory reforms, and the need for enhanced international research collaborations.
In the “Digitalization and Industrial Transformation” session, scholars discussed the role of digital inclusion, particularly in underdeveloped regions like South Punjab. The session highlighted weak infrastructure, low digital literacy, and limited governance as key barriers, and called for region-specific policies supported by public-private collaboration.
Another session, “Trade and Commerce in the Digital Era,” explored digital transformation’s impact on trade facilitation, service exports, SME participation in e-commerce, and youth entrepreneurship. One study analyzed the impact of Pakistan’s Fully Automated Clearance System (FCA) and called for more strategic upgrades. Another proposed a Digital Economy Development Index (DEDI) to track digital transformation and service exports. Papers also highlighted challenges in e-commerce adoption due to Pakistan’s cash-based economy and suggested more targeted youth training and inclusive curriculum reforms to promote digital entrepreneurship.
Throughout the day, discussions revealed key insights into the challenges and opportunities Pakistan faces in its digital transition. Despite limitations, there is growing momentum across sectors and provinces toward embracing technology as a driver of growth, inclusion, and resilience.
Copyright Business Recorder, 2025
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