In world’s economy, the importance of digitalization has grown through years, particularly after the advent of economic and agriculture revolution. This study is .to analyze why digital trade is not promoting in Pakistan as compared to other countries and what are the barriers Pakistan facing in the .era of digitalization. This study aims to look at the influence of digitalization, ICT regulations, network coverage and cybersecurity in the economy on Trade cost for 37 developed and developing countries of all continents of the world for the time period of 2010 to 2020. The reason of selection of both developed and developing countries is to analyze the cost of trade of agriculture and manufacture sectors in the era of digitalization both across countries and for Pakistan This endeavor uses Gravity model of International trade, which has the rock version of worldwide trade greater than fifty (50) years. This research has significant strategy implications in terms of the digital economy, trade costs, ICT regulations, cybersecurity and technological innovation for decision-makers. The price of trade is extraordinary therefore requirement of digital economy is essential. Because of high security risk and burdensome regulations in agriculture and manufacturing sector, trade cost will rise in both sectors. Therefore, the trade cost must be minimized for nourishing technology by way of digitalization in economy, active regulations and high cybersecurity. Supervisor:- Dr Ahsan Ul Haq Satti