Pakistan’s job market: is the country ready as AI makes inroads?

There are already 7.18 million people unemployed in the country as the employment rate comes in at 9.6% in 2022-23 – according to employment figures provided by Dr Hafiz Pasha, former finance minister and academician.

This is clear evidence that Pakistan is struggling.

For perspective – in 2018-19, the unemployment rate was 6.9% with 4.7 million people unemployed.

Unemployment rate fell to 6.3pc in FY21

Meanwhile, poverty levels have risen from 34.2% in 2022 to 39.4% in 2023, pushing a further 12.5 million people below the poverty line as per data shared by World Bank officials.

In this environment, anything that affects unemployment is likely to raise eyebrows, especially for economists.

Artificial intelligence is now making inroads in many countries especially within developed nations. For instance, a company in the US – Waymo is offering autonomous ride-hailing services in a few cities.

It’s not futuristic anymore – in fact driverless taxis are already picking up passengers. The company may have incurred a cost for the technology but labour is expensive in a country like the United States.

Dubai is also making giant strides in this space, moving beyond driveless taxis to flying ones.

From wow to new normal: driverless cars cruise the streets of San Francisco

Autonomous ride-hailing services will provide plenty solutions for such problems such as female passengers being uncomfortable travelling at night with a male driver, etc.

Moreover, experts have tipped autonomous driving to eventually lower accidents – a major reason being AI does not get intoxicated.

Resisting technology will keep Pakistan below average in the long run, just as it has done in the past.

Pakistan’s economy and its people close to the ‘Tipping Point’

Some Turks believed that one of the reasons for the downfall of the once mighty Ottoman Empire was that it did not embrace new technologies.

The question still stands – will AI replace jobs in Pakistan? I believe it definitely will, and that too, in a significant manner.

Pakistan tends to lag behind in everything and there are people working in many organisations who can easily be replaced by some simple automation, let alone AI.

AI and its different applications can do almost all jobs – can do personalised teaching as well as help conduct surgeries.

During a recent visit to the US, I met with Mohammad Tawwab, a driver of Afghan descent, at a ride-hailing company. In his 40s, Tawwab was wary of the change AI was bringing and said that he too, knew that ride-hailing or taxi drivers may become redundant for ride-hailing companies sooner or later.

He had sensed that and was now looking to game up and planning likewise in order to respond to the change in the labour market demands due to the role AI will come to play.

But he isn’t afraid.

He told me that there had been big technological shifts in the past and there will always be jobs for people – albeit in different roles.

He was enrolled in a project management programme that he thinks will help him climb the career ladder and would rather be the one incorporating AI in his work one way or another rather than becoming its victim.

The threat AI posed to Tawwab actually pushed him out of his comfort zone and recalibrate his skill set – in order to make himself more relevant and valuable.

As a nation, we should remind ourselves that Pakistan can progress and develop, and does not have to remain trapped in the vicious circle of poverty, decline and decay.

We expect Pakistan to embrace progress and this includes embracing technology. As things stand today, AI will be everywhere, in every industry – manufacturing, mobility, pharmaceutical, education, marketing etc.

Pakistan’s economy: for once, let us embrace technology

The people of Pakistan – especially the salaried group should double-check that they are not employed for something that can be done by simple machines. If they are, they should work to skill-up and remain relevant.

After all, AI is just a tool and if its timely and rightly employed, it can help increase productivity of not just organizations but countries. There are of course risks associated with it, and then the need for regulation.

To remain competitive for companies and as a country, Pakistan and Pakistanis need to embrace AI as quickly and as much as possible.

The article does not necessarily reflect the opinion of Business Recorder or its owners