- Experts see digital infrastructure gaps and governance concerns as key challenges that could potentially dash Islamabad’s AI ambitions
KARACHI, Pakistan
Pakistan has set its sights on joining the global artificial intelligence race, unveiling plans to invest $1 billion in AI by 2030 as part of a broader push to modernize its economy and compete in the digital age.
Officials say the initiative marks a strategic pivot toward high-value technology sectors, but experts caution that infrastructure gaps, policy continuity, and data governance challenges could determine whether the ambition translates into real transformation.
Prime Minister Shehbaz Sharif announced the investment earlier this month, building on the country’s first National IT Policy unveiled in July. The strategy aims to harness AI across agriculture, health care, finance, governance, and smart infrastructure while positioning Pakistan within the global digital economy.
The policy outlines sweeping targets: training 1 million AI professionals by 2030, establishing AI Innovation and Venture Funds to spur private investment, launching 50,000 AI-driven civic projects, and developing 1,000 local AI products within five years.
It also proposes 3,000 annual AI scholarships, support for 1,000 research projects, inclusion of women and persons with disabilities through accessible education and financing, stronger cybersecurity safeguards, and partnerships aligned with international AI standards.
Yet industry leaders say the initiative’s success will depend on execution.
Sajjad Syed Shah, president of the Pakistan Software Houses Association (P@SHA), an umbrella body representing the IT sector, identified policy and financial restructuring, digital infrastructure, data production, governance frameworks and market access as key hurdles.
“We have to improve digital infrastructure, data production and governance framework, in addition to strengthening digital literacy, inclusive access, and teachers’ training,” he said.
“More importantly, institutional coordination and funding need to be improved.”
He also stressed the need for competitive tax incentives to attract investment.
“We have to give long-term and better tax incentives to our IT companies, comparable to what we have in the region. This is essential to ensure predictability of the tax regime and to attract more capital to the country,” he added.
- Infrastructure and continuity concerns
Technology specialists echo concerns about implementation capacity.
Khushnood Aftab, a Karachi-based IT specialist and entrepreneur, said the biggest obstacles lie not in talent but in infrastructure and policy stability.
“The main challenges are related to infrastructure, access, and policy continuity rather than talent or capability. Pakistan has the human resource but needs stronger infrastructure to support large-scale AI development,” Aftab told Anadolu.
He pointed to limited access to high-performance computing, GPUs and advanced cloud infrastructure as major constraints, alongside foreign exchange pressures and limited financing.
The government should prioritize investments in AI compute resources, cloud platforms and data centers while expanding workforce training, he said.
Telecom and IT consultant Pervez Iftikhar warned that implementation itself may be the biggest risk, citing past policy failures.
He noted that several national plans announced over decades were either only partially implemented or executed half-heartedly, pointing to the still incomplete Telecom Policy 2015 as an example.
‘Tough but still manageable’
Despite the hurdles, industry voices say the opportunity is significant.
Shah observed that internet usage has grown exponentially in recent years, requiring parallel upgrades to digital infrastructure.
“We need to make sure our internet infrastructure keeps pace with that increase,” he said.
Aftab described the challenges as “tough but still manageable” with sustained government focus and private-sector engagement.
“This is a very important and timely step. It shows that Pakistan is treating AI not just as a technology trend, but as a national economic priority. Government commitment at this level gives confidence to the entire ecosystem, including companies, investors, and young professionals,” he said.
This support could accelerate the shift from a services-focused industry toward developing indigenous AI products and platforms, he continued, emphasizing that Pakistan “already has the key building blocks in place.”
“Many Pakistani companies have already started working on AI across hardware, software and training, which shows that the ecosystem is ready and capable of scaling further,” he added.
In June last year, local platform SOCByte launched the country’s first AI-powered cybersecurity program aimed at providing critical threat intelligence to professionals.
Shah agreed that targeted reforms could unlock rapid growth.
“If we impact these three particular areas – fiscal policies, digital infrastructure and market access – there is absolutely no reason why our industry cannot grow further,” he said.
Economic potential and export growth
Analysts say AI could significantly boost Pakistan’s export earnings and productivity in the IT sector.
“AI can play a major role in strengthening Pakistan’s economy because it directly supports exports, job creation and productivity,” said Iftikhar.
He said AI applications could unlock value across priority sectors.
In agriculture, precision farming, yield forecasting, and pest detection could raise productivity in a sector employing about 37% of the workforce.
In health care, AI-assisted diagnostics and workforce augmentation could help bridge urban-rural service gaps, though meaningful impact will require investment in training, data systems, and clinical validation. AI also holds promise in medical imaging and drug development.
In finance, AI can enhance fraud detection, credit scoring for the unbanked, personalized advisory services and compliance automation, complementing the expanding fintech sector.
Aftab noted the global export potential of AI solutions.
“AI enables Pakistani companies to build solutions that can be sold globally, bringing in foreign exchange without heavy physical infrastructure. It also improves efficiency in sectors like banking, agriculture, manufacturing, and government services, reducing costs and improving competitiveness.”