Empowering Pakistan’s Economic Performance

As the world moves towards an AI-driven future, Pakistan stands at a crossroads. Rapid advancements in AI offer extraordinary opportunities and significant challenges. With a young population, an emerging tech sector, and a unique geopolitical context, Pakistan is potentially poised to harness AI to revolutionise its economic, educational, healthcare and security landscapes.

Pakistan’s 160 million young people now have the potential to harness AI to drive innovation across sectors such as agriculture, manufacturing, energy, and services. In agriculture, AI tools like predictive analytics and precision farming can help farmers optimise yields and minimise the estimated 40% of waste in the food supply chain. Drones equipped with AI can forecast weather patterns, analyse soil health and monitor crop conditions, enabling informed, data-driven decisions for better resource management. In the energy sector, AI can improve grid management and optimise energy distribution, while smart energy systems can predict demand patterns and enhance the efficiency of renewable energy sources. In manufacturing, AI can streamline operations, cut costs, and enhance quality control. The shift to smart factories – where machines communicate and optimise processes in real-time – can strengthen Pakistan’s position in the global manufacturing landscape. Overall, AI can be crucial in advancing sustainability and efficiency across various sectors.

AI has significant potential in governance and taxation, particularly in enhancing tax collection efforts. By leveraging data analytics and machine learning, the government can improve transparency in financial transactions, monitor public spending, and detect irregularities in tax submissions. For instance, the Federal Board of Revenue (FBR) is increasingly adopting AI-driven systems to streamline tax collection processes. These systems enable real-time tracking of tax evasion, help improve compliance rates, and facilitate better governance. Ultimately, such innovations not only simplify the taxation process for citizens but also ensure the optimal utilisation of national resources.

AI demands a robust educational framework to equip Pakistan’s young people with the skills of the future. The education system must shift from outdated curricula and prioritise critical thinking, creativity, and problem-solving in order to prepare students for futuristic disciplines. Integrating AI technologies, machine learning, data analytics, and interdisciplinary studies into the HEC curriculum is crucial for cultivating a globally competitive workforce. Collaborative initiatives with tech outfits can offer valuable hands-on experience, ensuring job readiness. Online courses and vocational training in AI and data science can enable professionals to reskill and adapt to the evolving demands of the workforce. AI-driven platforms can personalise learning by analysing student performance data and adapting content to individual requirements. Government-backed initiatives like coding boot camps and tech incubators can further bolster skill development and given a thriving freelancing ecosystem, young professionals have ample opportunities to offer AI services globally on platforms such as Fiverr and UpWork.

As organisations increasingly adopt AI, a solid foundation in digital infrastructure becomes essential to support scalability, data management, and interoperability. Tech outfits affiliated with the Pakistan Software Export Board (PSEB), the Pakistan Association of Software Houses (P@SHA), Ignite and the Special Technology Zones Authority (STZA) are at the forefront of this transformation. These bodies are instrumental in enabling an environment conducive to AI innovation, focusing on building the necessary digital infrastructure that facilitates data-driven decision-making and enhances operational efficiency. Telecommunications infrastructure, overseen by the PTA, plays a pivotal role in this landscape, and reliable internet connectivity provided by Internet service providers (ISPs) is essential for businesses to leverage AI technologies effectively. This enables organisations like CureMD to use AI-driven solutions to streamline healthcare management and DigiKhata to leverage AI to assist small businesses in financial management.

Pakistan’s healthcare sector faces significant challenges like limited access to quality care and a shortage of skilled professionals. AI-enabled telemedicine platforms such as Sehat Kahani provide access to underserved communities through virtual consultations, allowing patients to receive medical advice and treatment without the need to travel. Furthermore, machine learning algorithms enhance disease diagnosis and start-ups like Taza Foods are using AI to ensure food safety and optimise supply chains, directly contributing to better health outcomes for consumers. Predictive analytics also empower healthcare providers to forecast disease outbreaks, enabling timely interventions. Platforms like HealthifyMe leverage AI to manage public health records effectively, facilitating better tracking of health trends and responses to public health challenges.

Pakistan’s geopolitical landscape is complex, and AI could significantly help reshape its relationships with neighbouring countries and global powers. The Middle East (especially the UAE and Saudi Arabia) is making remarkable advancements in AI, investing in technology to support its broader vision of economic diversification and leadership. The UAE’s AI Strategy 2031 seeks to establish it as a global AI leader, enhancing sectors like healthcare and education, while Saudi Arabia’s Vision 2030 emphasises AI integration into its economy. Pakistan stands to benefit from these regional developments through strategic partnerships that encourage technology transfer and collaborative research. Engagements with major US tech outfits, such as Google and Microsoft, can grant access to cutting-edge AI technologies and best practices, strengthening Pakistan’s tech ecosystem, while partnerships with Chinese firms like Huawei and Alibaba can facilitate knowledge sharing and investments, empowering local start-ups to leverage advanced AI frameworks. By positioning itself as a tech hub for Middle Eastern companies entering South Asia, Pakistan can harness its skilled workforce and cost-effective operations while strengthening ties with both American and Chinese technology leaders.

By establishing a comprehensive national AI policy framework endorsed by the provinces, Pakistan will be able to prioritise smart investments in crucial sectors, foster collaboration among stakeholders and put in structures for the effective governance of all AI matters. This focus will promote the right economic experimentation as well as address ethical concerns and data privacy issues. Public-private partnerships can drive research, development and the commercialisation of AI technologies, enhancing Pakistan’s global competitiveness and attracting foreign investment and talent. Initiatives that support R&D in AI and incentivise start-ups could further stimulate innovation across various sectors and tackle pressing national challenges (healthcare delivery, agricultural productivity and national security) developing solutions tailored to Pakistan’s socio-economic context.

Javaid Iqbal is a global digital transformation and technology governance leader. He also serves as a Member/ED of the Special Technology Zones Authority (STZA), Government of Pakistan. The views in this article are his own and do not reflect those of the government or any other body or person.