Cabinet approves National AI Policy 2025
The Federal Cabinet, which met here with Prime Minister Shehbaz Sharif in the chair, unanimously approved the National Artificial Intelligence Policy 2025. The policy seeks to establish a comprehensive AI ecosystem — in a bid to reshape the country's economic future and global competitiveness.
Reform of the Hajj policy was another key decision of the day, with the Cabinet endorsing the Hajj Policy 2026, which mandates a fully digitised pilgrimage operation for pilgrims beginning in 2026.
The prime minister directed the Ministry of Religious Affairs to overhaul logistics, introduce real-time monitoring, and deploy upgraded digital tools – including a revamped Pak Hajj mobile app, digital wristbands, and integrated SIM cards – to ensure transparency and high-quality service delivery.
The policy allocates 70 per cent of the pilgrimage quota to the government and 30 per cent to private operators. Companies that failed to meet their obligations during the previous pilgrimage season will be required to accommodate the affected pilgrims in the upcoming cycle.
To enhance accountability, the Cabinet also mandated third-party validation of all Hajj operations, a competitive system for selecting support staff, and the introduction of emergency compensation mechanisms. A minimum of 2,000 pilgrims per private firm is now required, and 1,000 seats will be reserved for hardship cases.
The digital transformation of the Hajj process will be jointly led by the ministries of Information Technology and Religious Affairs, under the direct supervision of the Prime Minister's Office.
As for the AI policy, officials briefing the Cabinet said it sets an ambitious agenda: training one million AI professionals by 2030, developing 1,000 home-grown AI products, and supporting civic innovation through 50,000 AI-driven public service projects.
The plan includes annual AI scholarships, inclusive financing for women and persons with disabilities, and two new government-backed investment vehicles – an AI Innovation Fund and a Venture Fund – aimed at encouraging private sector participation.
A newly formed AI Council, guided by a national Master Plan and Action Matrix, will oversee implementation and ensure compliance with international standards on data protection, cyber security, and ethical AI use.
'Our youth are our greatest asset,' said the prime minister. 'By investing in AI, we are investing in the future of this country – in jobs, in services, and in global relevance.' In addition to these major reforms, the Cabinet also ratified decisions from earlier meetings of the Cabinet Committee on Privatisation and the Committee on Legislative Business held earlier this month.
At the outset of the meeting, Prime Minister Sharif announced that Pakistan will dispatch two consignments of food aid to Gaza, aiming to provide relief to the besieged population amid the ongoing conflict.
Copyright Business Recorder, 2025
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