Transformation of Pakistan's economy may be achieved through AI, according to experts' perspectives
Pakistan has taken a significant step forward in its digital transformation journey with the approval of the National Artificial Intelligence (AI) Policy 2025. The policy, designed to create a complete AI ecosystem in the country, aims to open up new employment and innovation avenues, democratize access to AI, and enhance public services.
The success of the proposed institutions under the policy depends on their being led by technocrats and industry experts, free from administrative hurdles. The policy needs to move at the speed of innovation, not bureaucracy, as AI globally evolves every 6-12 months. Dr Noman, a prominent IT sector expert, emphasizes the importance of cutting red tape and delivering early wins that demonstrate credibility for the policy's success.
The policy includes the establishment of an AI Innovation Fund and AI Venture Fund to boost private sector involvement. However, the key challenges for effectively implementing the policy include a fragmented institutional ecosystem, insufficient and underdeveloped financing models, and weak data governance. To address these challenges, an independent AI Authority with a robust legal foundation is proposed to ensure cross-sector continuity and accountability.
A blended financing approach is recommended, mixing public funding, venture capital, diaspora investments, and development finance, along with tax incentives and adoption credits for private sector engagement. Enhancing data governance through a comprehensive national data protection framework aligned with global standards and clear protocols for data sharing and localization are critical for developing domestic AI capabilities without dependency on foreign platforms.
The government plans to establish a high-level AI Council and a detailed master plan to oversee execution and maintain momentum. Strong emphasis is also placed on inclusive workforce development, targeting training of 1 million AI professionals, including women and differently-abled persons, to broaden human capital.
The policy also includes the creation of 50,000 AI-driven civic projects and 1,000 local AI products in the next five years. Top IT companies and universities are encouraged to launch relevant degree programs and establish innovation centers in major cities.
Pakistan needs to collaborate with local and foreign universities and training institutions to prepare 10,000 trainers and 1 million IT graduates in AI within the next two years. The policy promotes global partnerships and compliance with international AI regulations. It aims to help Pakistan achieve a target of $10 billion IT exports by FY29 and mentions training 1 million AI professionals by 2030.
The policy also emphasizes the need for basic infrastructure for reaping the benefits of this policy, including fast internet, affordable devices, electricity, and workstations in different cities. The private sector's involvement is essential, with the establishment of an AI Innovation Fund and AI Venture Fund outlined in the policy. The private sector, particularly startups and SMEs, must be incentivized with regulatory sandboxes, tax breaks, and access to public datasets to drive adoption and innovation.
P@SHA has pledged to support the government's ambitious goal through its members. The policy aims to strengthen cybersecurity and national data security protocols. It also includes the distribution of 3,000 annual AI scholarships and facilitation of 1,000 research projects. The policy is expected to help Pakistan achieve major milestones on business, technology, and economic fronts, potentially increasing IT exports to $10 billion.
While the policy's draft is an encouraging and much-needed step towards creating a future-ready digital economy, its history with tech policies is riddled with delays and diluted impact, according to Dr Noman. The policy must act fast to align with global AI alliances to avoid becoming data consumers, not contributors. The policy includes the inclusion of women and differently-abled individuals through accessible education and financing. The policy aims to launch nation-wide awareness campaigns aimed at producing not only AI professionals but also ethical and knowledgeable technology users.
In conclusion, the effective rollout of Pakistan’s AI policy depends on improving institutional coordination, diversifying finance, enforcing data governance, fostering private sector participation, accelerating implementation speed, and broadening inclusive AI education and awareness as identified by multiple IT experts and government officials.
- The AI policy's success is predicated on the independence and expertise of those leading the proposed institutions, free from bureaucratic hurdles.
- To effectively implement the policy, a blended financing approach is recommended, combining public funding, venture capital, diaspora investments, and development finance.
- Ensuring data governance through a comprehensive national data protection framework aligned with global standards is essential for developing domestic AI capabilities without dependence on foreign platforms.
- To drive domestic AI innovation and adoption, the private sector must be incentivized through regulatory sandboxes, tax breaks, and access to public datasets.
