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Arab News
6 days ago
- Business
- Arab News
Pakistan unveils national AI policy to boost innovation, jobs and ethical governance
KARACHI: Pakistan has announced its first National Artificial Intelligence Policy, a wide-ranging plan seen by Arab News to develop AI infrastructure, train one million people in related skills and ensure responsible, ethical use of the technology in line with global standards. The Ministry of IT & Telecom shared a copy of the new policy with media on Wednesday and said the policy is designed to transform the country into a 'knowledge-based economy' through investment in research, innovation, and skills, while safeguarding personal data and human rights. The 'National Artificial Intelligence Policy – 2025' lays out a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure and international partnerships. It creates a National AI Fund by permanently allocating 30 percent of the R&D Fund managed by Ignite, a government-run technology financing body that supports research, startups and innovation in Pakistan's ICT sector. The policy also establishes Centers of Excellence in AI in major cities and sets targets for 90 percent public awareness of AI by 2026. The plan aligns with the 'AI for Good' initiative of the International Telecommunication Union and the UN Sustainable Development Goals. 'The Artificial Intelligence (AI) Policy 2025 is a pivotal milestone for transforming Pakistan into a knowledge-based economy,' the foreword to the policy document says, adding that it will 'establish an ecosystem necessary for AI adoption … by ensuring responsible and ethical use of AI.' Under the plan, the Centers of Excellence will 'facilitate demand-driven research and development in AI and allied technologies that align with national priorities,' provide access to advanced computing labs and run incubation and training programs. On security, the government will develop AI-integrated security guidelines for end-to-end protection during the development and deployment of AI systems and mandate 'transparency and disclosure of the use of AI systems' in the public sector. Internationally, Pakistan will seek bilateral and multilateral agreements with AI-leading nations, participate in global AI forums, and 'align Pakistan's AI regulations and standards with international best practices to ensure interoperability, data privacy, and security.' The Ministry of IT & Telecom said the policy's implementation would be overseen by an AI Council chaired by the federal IT minister, with representation from academia, industry, provincial governments and civil society. Pakistan is trying to make strides in modernizing its digital infrastructure and fostering an innovation-driven economy. Under the 'Uraan Pakistan' five-year National Economic Transformation Plan (2024–29), the government is prioritizing digital transformation by expanding ICT exports, supporting freelancing, and establishing a 'Quantum Valley' focused on high-tech innovation. This broader strategy is reinforced by efforts to digitize governance and public services: projects such as AI‑powered surveillance systems in Islamabad's 'Safe City' program, the rollout of a Power Equipment Manufacturing Dashboard, and the launch of Zong's locally hosted AI-powered cloud platform exemplify the push to modernize both security and enterprise infrastructure. Complementing these, the State Bank of Pakistan is piloting a central bank digital currency (digital rupee), with legislation nearly finalized to license and regulate virtual assets, aiming to integrate digital payments into the mainstream financial ecosystem. On the cryptocurrency front, Pakistan is trying to evolve from regulatory ambiguity to institutional innovation. In March 2025, the government established the Pakistan Crypto Council (PCC) to shape blockchain policy and digital asset regulation, with key figures like Bilal Bin Saqib as CEO and strategic adviser Changpeng Zhao, Binance co‑founder, contributing technical and governance expertise. In May, Pakistan unveiled a Strategic Bitcoin Reserve, committing to hold bitcoin in a sovereign wallet without plans to sell, while also earmarking 2,000 MW of surplus electricity for bitcoin mining and AI data centers — part of a broader push to convert energy surplus into digital economy infrastructure. The Virtual Assets Act, 2025, enacted in July, created the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee crypto businesses under FATF-aligned standards . Meanwhile, adoption is accelerating. Crypto users are projected to surpass 27 million by year-end, with digital asset revenues approaching $1.6 billion. Reports also suggest that Pakistan is fast-tracking crypto integration into formal sectors like banking, foreign exchange, and even gold trading, signaling a strategic leap toward mainstream crypto incorporation.
Business Recorder
11-08-2025
- Business
- Business Recorder
AI ambitions need reality check
EDITORIAL: In a potential landmark move, the federal cabinet last week approved Pakistan's first-ever National AI Policy, signalling the country's ambition to emerge as a serious player in the global artificial intelligence arena. Given the rapid pace of AI development worldwide, such a framework was both urgent and long overdue, making the announcement of the policy a welcome step. The policy is ambitious, aiming to train one million AI professionals by 2030, developing 50,000 AI-driven civic projects and 1,000 homegrown AI products in the next five years, while also distributing 3,000 annual AI scholarships, among other initiatives. The policy's true impact, however, will depend on more than lofty targets and idealistic rhetoric. For any AI framework to be truly effective, what is needed, first and foremost, are sustained, rapid investments to bridge the glaring infrastructure and capacity gaps holding back Pakistan's IT landscape. Without first putting in place the essential digital infrastructure that ensures, at the very least, something as basic as seamless, high-speed broadband access — the building block for any meaningful digital innovation — how do policymakers intend to realise the grand goals envisioned in the policy? Internet speeds consistently lag well behind global standards, and the mere hint of political protests often leads to abrupt shutdowns or deliberate slowdowns. Moreover, there is a serious lack of high-performance computing infrastructure, including modern data centres, AI supercomputers and cloud infrastructure capable of handling large-scale processing and storage demands. The fact that Pakistan's first AI data centre was established only in June further underscores the gap between vision and readiness. Both the public and private sectors must also recognise that AI depends on large, reliable datasets, yet much of our public data remains undigitised. Cybersecurity is also a major concern, with growing exposure to data breaches and cyberattacks. Then there is the challenge posed by our deep-rooted skills deficit and the lack of cutting edge AI expertise within our educational institutions, a consequence of decades of neglect in science education, leaving the country ill-equipped to develop the talent it now urgently needs. Perhaps, most critical is the state of digital governance and the increasingly restrictive environment in which Pakistan's online space operates. The clampdown on political dissent in recent years has inevitably spilled into the digital realm, constraining the environment needed for AI to truly thrive. Beyond the routine throttling of internet speeds, there have been curbs on social media, restrictions on VPN access, attempts to install a national firewall to regulate internet usage, and the state's preoccupation with monitoring and controlling the public's online activities. These have all combined to inflict substantial economic losses on businesses and freelancers, likely deterred private sector investments in AI and related technologies, and weakened Pakistan's nascent tech start-up ecosystem. Those in power must realise that censorship and the kind of digital and AI advancements they seek simply cannot co-exist. This is a contradiction so basic that it risks derailing the entire AI vision they have set forth. Proponents of restricting digital freedoms frequently cite the Chinese and Russian examples, where technological progress has continued despite tight state control. But such comparisons are deeply misguided, and dare one say, quite foolish. Both China and Russia have spent decades developing strong technological foundations, investing in world-class science education, and especially in China's case, building advanced alternatives to Western Digital platforms and products, allowing censorship without crippling their tech sectors. Pakistan, by contrast, lags so far behind that similar restrictions will only stifle a tech ecosystem still struggling to find its footing in the global knowledge economy. To be truly effective, the National AI Policy must be accompanied by a commitment to digital openness and a serious effort to overcome our considerable infrastructure and capacity challenges. Copyright Business Recorder, 2025
Business Recorder
02-07-2025
- Business
- Business Recorder
‘Digital Nation Pakistan': AI curriculum across federal schools launched
ISLAMABAD: The Government of Pakistan has launched an AI curriculum across federal schools, begun training 10,000 AI instructors, and initiated fibre optic internet connectivity for 532 schools in Islamabad — all as part of Prime Minister Shehbaz Sharif's 'Digital Nation Pakistan' vision. Federal Minister for IT and Telecom Shaza Fatima Khawaja announced that AI and emerging technology education will now be made accessible to every child, starting this academic year. Over 1,000 teachers have already been trained, with summer sessions planned to expand and deepen their capacity. 'From computer literacy to artificial intelligence, educating our youth in cutting-edge technologies is no longer optional — it's essential,' said the minister. 'Our focus has shifted from just training numbers to actual employability and impact.' She highlighted that a high-level committee, formed under the prime minister's directive, is reviewing national IT curricula with an emphasis on employability of school and college graduates. The revised curriculum, being jointly developed by the Ministry of Education, HEC, and National Curriculum Council, targets students from Grade 6 to 12. Further key developments include: Smart labs, classrooms, and digital screens have already been installed in over 100 federal schools and colleges. A hybrid/EdTech model is being rolled out to ensure modern education reaches remote areas. The National AI Policy is actively working to prepare 10,000 AI trainers for nationwide deployment. Google and Microsoft certifications will be offered to students to improve their international job prospects. In a major international collaboration, Pakistan signed a deal with Huawei during the PM's recent visit to China, aiming to train 300,000 students in AI and digital skills. Over 200 students have already completed their training under this agreement, with the rest expected by year-end. Minister Khawaja concluded that the real goal now is to create a digitally skilled, employable workforce, not just run training programmes. 'We are investing in people, in skills, and in future livelihoods. Every child deserves this opportunity,' she said. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
Investor confidence: Minister praises SIFC for being key driver
ISLAMABAD: Federal Minister for Information Technology Shaza Fatima Khawaja on Wednesday praised the Special Investment Facilitation Council (SIFC), describing it as a key driver in restoring investor confidence through its 'whole-of-government' approach. Speaking at the two-day Digital Foreign Direct Investment (DFDI) conference, Khawaja credited the military-backed initiative with streamlining decision-making and fostering a coordinated environment that reassures both local and foreign investors. 'The SIFC's whole-of-government approach has significantly contributed to building investor confidence in Pakistan,' she added. She said Pakistan is ready to become a hub of technology and digital investment, adding strong public-private partnerships, progressive policies, and a growing number of skilled IT professionals as key strengths. 'Today, we can proudly say that if you invest in Pakistan, we will make sure the magic happens for you,' she said, emphasising the need for continued collaboration between the public and private sectors, international partners, and development organisations to unlock Pakistan's full potential – not only in IT but also in agriculture, healthcare, finance, education, and manufacturing. 'Technology is no longer limited to one sector. It now plays a role in every field and is essential for overall development,' she added, noting that the digital shift brings both challenges and new opportunities for growth. Khawaja highlighted Pakistan's demographic advantage, with nearly 150 million young people under the age of 30, which she said gives the country a promising future in digital innovation. She also outlined key policy initiatives, including the Digital Nation Pakistan Act, the National AI Policy, the Cybersecurity Policy, the development of technology parks and special technology zones, and support for a strong startup ecosystem and the transition to a cashless economy. 'Pakistan now offers a complete digital ecosystem driven by leadership, vision, and talent. We are no longer followers—we are ready to lead,' she said. She credited the prime minister's leadership for steering these efforts and noted that around 75,000 IT graduates and 300,000 certified professionals join the workforce every year, providing a solid base for growth. She announced that Pakistan will assume the presidency of the Digital Cooperation Organization (DCO) in 2026 and expressed hope for expanding regional technology corridors to ensure access to markets, talent, capital, and best practices. Khawaja also thanked the Trade Development Authority of Pakistan, Ministry of Commerce, local administration, security agencies, and especially the private sector for their support. Speaking at a presser, Secretary General of DCO Deemah AlYahya commended Pakistan for championing DFDI. She emphasised that Pakistan's leadership role would not only advance the nation's technological infrastructure but also enable it to support other countries in their digital growth. She said the presidency of Pakistan for DCO in 2026 is a continued effort to position the country as the digital powerhouse for the region and the world, adding the DCO is working to open markets for enterprises across all member states, fostering cross-border collaboration. Pakistan, she noted, will play a key role in driving these advancements. AlYahya also expressed optimism about Pakistan's growing digital sector, particularly the youth-driven innovation. 'Seeing the youth and the growth in Pakistan's digital sector gives us a great sense of optimism,' she said. 'It motivates us to collaborate with all our member countries and utilise the advancements in each nation.' She highlighted the importance of identifying each country's competitive advantages to address global challenges, noting that DCO's role is to pinpoint these strengths and areas for improvement. She pointed to the Digital FDI event in Pakistan as an example of how the country's infrastructure, youth talent, and advancements in software and hardware could attract private sector investment and harness new opportunities. 'The Digital FDI event here in Pakistan is a prime example of how we can leverage Pakistan's competitive advantages to create global opportunities,' she added. The two-day moot concluded with a strong pledge to position Pakistan as a regional leader in technology, information technology (IT), and information and communication technology (ICT). The event saw participation from more than 45 countries, with over 40 international companies and startups showcasing their products. Around 35 ministers and official delegations from various countries attended, along with over 30 global speakers and more than 50 CEOs from leading IT firms. Organised by the Ministry of IT and Telecommunication in collaboration with the DCO, the DFDI Forum 2025 was aimed to promote Pakistan as a key destination for digital investment and innovation. The forum brought together investors, policymakers, industry leaders, and tech experts from around the world to explore opportunities in the growing digital economy. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
Inclusive prosperity promotion: Minister calls for Pakistan-ASEAN technology alliance
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal has called for a technology alliance between Pakistan and ASEAN to promote inclusive prosperity. The minister expressed these views while addressing the ASEAN-Pakistan Technology Expo 2025 as the chief guest at the National University of Sciences and Technology (NUST) in Islamabad on Monday. The minister said that our vision is to make Pakistan a knowledge economy that empowers the youth, strengthens its industries and plays a meaningful role in regional cooperation. The two-day event brought together distinguished delegates from ASEAN member states, academia, industry leaders, and students to foster collaboration in science, technology, and innovation. The minister underscored the significance of the Expo as a symbol of shared commitment between Pakistan and ASEAN nations to harness the transformative power of technology. He emphasised the dual nature of technological change, which offers immense promise but also presents serious challenges. From artificial intelligence to clean energy, Iqbal noted that disruptive innovations are reshaping global economies and societies, and highlighted the risks posed by the growing technology gap, digital divide, and skills mismatch in developing regions. Iqbal outlined the common challenges faced by Pakistan and ASEAN countries, including climate change, youth unemployment, and uneven digital infrastructure, while also pointing to shared strengths such as a young and tech-savvy population, robust universities, and a growing appetite for innovation. He stated that this synergy forms the foundation for deeper cooperation in science and technology. Reaffirming Pakistan's strong commitment to its partnership with ASEAN, Iqbal proposed a forward-looking vision for ASEAN-Pakistan technology collaboration. He outlined three strategic pillars to drive this agenda: fostering knowledge and talent exchange through academic partnerships and innovation fellowships; building joint research and development platforms in emerging fields; and ensuring that technology contributes to sustainable and inclusive development, particularly in areas such as climate resilience, health, and education. The minister also highlighted recent milestones in Pakistan's journey toward a knowledge-based economy. These include the launch of the National AI Policy, the creation of Special Technology Zones to attract global investment, the digitisation of governance through the E-Pakistan initiative, and the strengthening of institutions such as NUST and Ignite to support startups and applied research. He emphasised that the future must be built through cooperation, innovation, and shared vision. Commending NUST for its leadership in technology education and research, he called upon the youth to develop technologies that serve not just markets, but the greater public good. The minister expressed hope that the ASEAN-Pakistan Technology Expo would mark the beginning of a new era of collaboration, shaping a smarter, greener, and more inclusive future for the region. In his concluding remarks, Iqbal issued a compelling call to action, urging all stakeholders to reimagine ASEAN-Pakistan relations not merely through the traditional lenses of trade and diplomacy, but as a dynamic technology alliance for inclusive and sustainable prosperity. He also proposed the following action steps for consideration at EXPO 2025: Establish an ASEAN-Pakistan Technology Cooperation Forum that convenes annually to identify joint initiatives, exchange innovative ideas, and evaluate collaborative progress. Launch an ASEAN-Pakistan Startup Bridge aimed at connecting incubators, venture capitalists, and entrepreneurs across the region to foster a vibrant cross-border innovation ecosystem. Promote the development of regional standards and interoperability in digital technologies to enable efficient, seamless collaboration and integration among member states. Encourage the co-hosting of technology expos, hackathons, and innovation challenges that actively crowdsource solutions to shared developmental challenges and stimulate youth-led innovation. Institutionalise a structured digital dialogue bringing together policymakers, academia, industry leaders, and young innovators to ensure that technology policies remain inclusive, future-oriented, and people-centered. In his welcome remarks, Umar Khan, Project Director of the National Centre of Robotics and Automation (NCRA) at NUST, acknowledged the pivotal role of Ahsan Iqbal in establishing key national research centers. He highlighted that the NCRA, along with the National Centre of Artificial Intelligence, National Centre of Big Data and Cloud Computing, National Centre of Cyber Security, and the National Centre of GIS and Space Applications, were all launched in 2017-2018 as part of the minister's vision to propel Pakistan into a technology-driven future. He noted that Iqbal's unwavering dedication has transformed these initiatives into thriving ecosystems of innovation, commercialisation, and national impact. Copyright Business Recorder, 2025
