Introduction Digital trade integration involves regulatory structures/policy designs, digital technologies, and business processes along the entire global/regional digital value chain (UNESCAP 2021). It requires free cross-border movement of digital products, services, and technologies, manufactured goods, data, capital, talent, and ideas, along with the availability of integrated physical and virtual infrastructure. Hence, digital trade integration requires the removal of digital trade barriers, as well as extensive technology, legal and policy coordination between member states. The significance of digital trade has increased considerably after the COVID-19 pandemic. (Javed and Ahmed 2022).[1] It highlighted the need for improvements in digital connectivity, ease in regulations, and availability of skilled workers to facilitate trade integration and promote the growth of the e-commerce sector. A study published by the Central Asia Regional Economic Cooperation (CAREC)[2] Institute examined the regional trade agreements of Pakistan and selected Central Asian countries—including Afghanistan,[3] Kazakhstan, Tajikistan, and Uzbekistan—and their relevance to digital trade integration. It also scrutinized the challenges faced by Pakistan’s public institutions in implementing digital trade policies (UNESCAP and SDPI 2021),[4] took a closer look at the challenges faced by small and medium enterprises (SMEs) involving digital trade-related products, and recommended plans of action toward achieving successful and sustainable regional digital trade integration. Context Central Asia is home to low- and middle-income countries. Although they do not have competitively available technologies and access to mature value chains, they can attain the benefits from the prospects available through digital trade integration. Businesses, specifically SMEs, can collaborate with global or large firms through digital platforms. Multilateral cooperation is significant in promoting the digital revolution and could substantially minimize the amount of public and private investment required for digital trade integration between Pakistan[5] and Central Asian countries. CAREC members have introduced laws and policies on e-commerce, but these are not always consistent or in line with best practices (CAREC 2020). Countries that perform well in digital trade and the digital economy can be referred to when developing guidelines to track and boost digital trade, such as adopting emerging technologies, including block chain and artificial intelligence. Analysis A CAREC Institute-published study aimed to find out how regional trade agreements can help narrow the gaps resulting from lack of a multilateral digital trade integration framework. In the initial phase, it explored the trade agreements across Afghanistan, Kazakhstan, Pakistan, Tajikistan, Uzbekistan, and how they utilized digital trade. It also examined the potential benefits of regional trade agreements for SMEs involved with digital trade-related products. Fifty SME firms from Pakistan and 50 from selected Central Asian countries in e-commerce and digital trade-related sectors were surveyed. The study then developed an action plan based on information extracted through 20 key informant interviews and two virtual focus group discussions. Findings showed that regional integration among the selected countries has increased by 40% since 2010. Kazakhstan and Uzbekistan were the most integrated with the other economies, while Afghanistan and Pakistan were the least integrated. Laws and regulations for electronic transactions were only fully implemented in Uzbekistan, whereas other countries have only partially carried them out. The study also indicated that Pakistan and selected Central Asian countries are at different levels of digital adoption, particularly in terms of mobile connectivity, download speed of mobile and broadband, and network readiness. It further reported that Kazakhstan and Pakistan have higher volumes of export and import compared to the others but do not have any major trading partners from the economies selected in the study. This demonstrates the lack of regional cooperation and the need for regional trade agreements to boost bilateral and regional trade. A review of Pakistan and the other Central Asian economies’ e-commerce laws and domestic policies and measures showed that they are at varying levels in implementing digital trade facilitation measures. Key policy issues that influence digital trade integration include ineffective enforcement of intellectual property rights, foreign investment restrictions in digital space, data and information costs, and cyber security concerns. Policy Recommendations Key recommendations to achieve successful and sustainable regional digital trade integration while improving regional cooperation include improving digital connectivity at home and across borders to help firms reduce costs and increase export volume; harmonizing rules, such as customs procedures and regulatory frameworks, to support cross-border digital trade through swift and timely knowledge-sharing between Pakistan and selected Central Asian countries; creating a working group dialogue consisting of Pakistan and Central Asian countries, including Afghanistan, Kazakhstan, Tajikistan, and Uzbekistan, to enforce a mutual understanding on product standards for trade; governments ensuring digital inclusion by reducing the urban–rural divide and integrating it into domestic digital trade policy and regulatory frameworks; developing electronic payment gateways and collaborating to establish a regional payment mechanism; conducting ICT capacity-building programs for young people, women, and the public, particularly in rural areas, to provide practical training in e-commerce; establishing a joint chamber of commerce for promoting business networks and bilateral trade such as the Pakistan Afghanistan Joint Chamber of Commerce and Industry; and governments investing extensively in education and training in the telecommunications, and technology sectors to overcome the lack of skilled workers and the mismatch between skills and demand. Other suggested initiatives involve establishing and strengthening bilateral and regional trade agreements, such as (i) reducing trade barriers by including provisions for digital trade integration; (ii) integrating IT and telecommunications in global value chains; and encouraging the exchange of goods and services, and economic cooperation in several fields, including e-commerce, trade, investment, transport and communication, and tourism. [1] A. Javed and V. Ahmed. 2022. Digital Trade as Engine of Growth for Pakistan. Pakistan Journal of Social Sciences. 13. pp. 71–83. [2] CAREC is composed of Afghanistan, Azerbaijan, People’s Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. [3] ADB placed on hold its assistance in Afghanistan effective 15 August 2021. [4] UN Economic and Social Commission for Asia and the Pacific and Sustainable Development Policy Institute. 2021. National Study on Digital Trade Integration of Pakistan. UNESCAP and SDPI. [5] Pakistan is among the seven founding members of the Digital Cooperation Organization. The others are Bahrain, Jordan, Kuwait, Nigeria, Oman, and Saudi Arabia. The organization aims to achieve “social prosperity and growth of the digital economy by unifying efforts to advance digital transformation and promote common interests.” Central Asian countries are not yet part of the 13-member group. Resources A. Javed and V. Ahmed. 2024. Scope of Digital Trade Integration for Pakistan and Central Asian States: An Action Plan. CAREC Think Tank Network Paper. CAREC Institute. UN Economic and Social Commission for Asia and the Pacific (UNESCAP). 2021. Digital and Sustainable Trade Facilitation in Central Asia Regional Economic Cooperation (CAREC). UNESCAP and CAREC Institute. Ask the Experts Asif Javed Senior Research Associate, Sustainable Development Policy Institute, Pakistan Asif Javed has worked with the World Bank, British Council, South Asian Network for Development, and Environmental Economics. He has published research on different themes, including digital trade and digital financial services. He is currently working on his PhD in Economics. Vaqar Ahmed Joint Executive Director, Sustainable Development Policy Institute, Pakistan Dr. Vaqar Ahmed serves in an advisory capacity at several national, regional, and international institutions and forums, including the Fauji Foundation and the Creative Cities project of the British Council Pakistan. He is also a member of the steering committee of Southern Voice Think Tanks Network and a council member of the energy committee of the National University of Science & Technology. He holds a PhD in Economics. Central Asia Regional Economic Cooperation Institute (CAREC) The Central Asia Regional Economic Cooperation Institute (CAREC) is an intergovernmental organization promoting economic cooperation in Central Asia and along the ancient Silk Road through knowledge generation and sharing. CAREC is jointly shared, owned, and governed by 11 member countries: Afghanistan, Azerbaijan, People’s Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Leave your question or comment in the section below: View the discussion thread.