By Samia Khalid ISLAMABAD, Feb. 02 (INP-WealthPK): The China-Pakistan Economic Corridor (CPEC) has gone a long way in addressing the connectivity and energy issues of Pakistan in its first phase. Under its second phase, the multi-billion-dollar project provides a platform for both Beijing and Islamabad to deepen their engagement in new and emerging technologies, thus truly living up to its potential of being a ‘game-changer’ for Pakistan. Through numerous projects, the CPEC not only contributes to Pakistan's conventional economy, but also considerably assists and develops its digital economy. The measures taken under the CPEC's digital connectivity domain include improving digital infrastructure, boosting e-commerce and building shared technological standards between China and Pakistan. This high-level cooperation will increase the exchange of digital economy technology and expertise between the two countries. “Advancement in information technology, science and research and development are crucial to promoting industrial cooperation between the two countries,” says Adnan Khan, a socioeconomic development specialist at the CPEC Authority, in an interview with WealthPK. “The focus of the first phase of CPEC (2015-20) was to resolve bottlenecks/immediate issues such as road infrastructure, connectivity, and the energy crisis. Now the scope of the second phase is much broader as it focuses on growth trajectory and expansion, export promotion and diversification, import substitution, and most importantly, industrial cooperation.” “There are four new joint working groups on digitisation of industrial and agriculture sectors, and development of information technology and science and technology sectors under the CPEC’s second phase,” the CPEC Authority official discloses. “Worldwide, rapid advancements in technology are creating new business opportunities while technology-enabled innovation is the major spur for productive growth,” he says, adding that Pakistan has tremendous potential in both the conventional and digital spheres. It is important to mention here that during the fiscal year 2020-21, Pakistan's IT exports increased 47.4% to $2 billion for the first time in the country's history, significantly surpassing the $1.44 billion achieved in FY2019-20, according to the ministry of commerce. “Pakistan's efforts to give impetus to digital transformation will improve the business environment, attract domestic and foreign investments, thus speeding up the economy's development,” says Adnan Khan. During his chat with WealthPK, he also said that at the 10th meeting of the Joint Cooperation Committee, more areas of mutual cooperation were identified, including the IT sector, to tap into its full potential in boosting export sector of Pakistan. “The cross-border optical fibre, which was laid between Gilgit-Baltistan and Rawalpindi, is now being extended to Karachi and Gwadar under the CPEC’s second phase. China will also help Pakistan initiate projects related to artificial intelligence. Moreover, the indigenisation of chips in Pakistan will be further expanded,” he says. “With China's  help, Pakistan can boost its digital economy as well. To reach this point, there must be more digital cooperation, efforts to create a digital bridge, the flow of data, and other policy-driven steps,” he says. “China’s digital economy and new digital emerging market represent a fast-progressive path for the country’s growth. It is playing a very crucial role in the economic recovery as well.” The official rejected the notion that the CPEC had entered the slow lane. “The steps taken in the CPEC’s second phase will show their performance in the economic indexes in coming years.” According to the official, the high-quality digital cooperation between China and Pakistan under the CPEC’s phase two can build a mutual digital community in Pakistan, benefiting the skilled professionals. “A youth-oriented Pakistan is the discoverable marketplace for digital transformation. The transfer of technological innovations from China to Pakistan will result in a significant increase in productivity, which will open doors of opportunity for the development of digital infrastructure through the local technological ecosystem.”