In a world driven by innovation, sitting on the sidelines is the quickest way to get left behind as a seismic shift is taking place in the world today, and three key drivers are responsible for the transformation: technology, artificial intelligence (AI), and business innovation.
While these forces are reshaping the global economic landscape, the big question for Pakistan is: will we just be sitting on the sidelines, or will we surf the wave and carve out a meaningful space for ourselves in this brave new world?
With a young population that promises to unleash immense potential, this is too important an opportune moment not to factor in.
Across the world, we are seeing the incipient stages of what many are now referring to as the Fourth Industrial Revolution. In contrast to the industrial revolutions of bygone eras, this current iteration isn’t solely focused on machines or mass production. Instead, it’s centred on something far more potent—intelligence. And by intelligence, we mean data-driven intelligence, and how it can be applied to get the best possible results from nearly every area of human activity.
Once a mere tech-buzzword, AI is now a fundamental economic growth pillar. Predictive analytics in the healthcare realm and autonomous vehicles typify a new app-driven phenomenon of enhanced efficiency and completely new industries.
OpenAI, Tesla, Google, and other big firms are leading this charge, but pay attention to how different national competitors are positioning themselves to benefit from or be disrupted by these developments.
Investing heavily in technology and education has paid off for countries like South Korea, Singapore, and Israel; they are now reaping the rewards. These nations have directed their energies toward the creation of an innovative ecosystem that supports startups and the generation of an impressively steady supply of skilled human capital. For Pakistan, this situation offers a clear lesson: If we don’t prioritize technological literacy and infrastructure, we are at serious risk of being left behind.
Youth is the greatest asset that Pakistan has right now. Over 60 percent of our population is under 30, giving us a demographic dividend that many developed countries can only dream of.
But this advantage can easily flip and turn into a disadvantage, or at best, a neutral condition, if we do not really channel our young people.
At present, more than 22.8 million children in Pakistan are not enrolled in school, which gives it the world’s second-highest total of out-of-school children.
Moreover, the country is afflicted by massive unemployment and underemployment; countless graduates with college degrees work in jobs that do not require them. A report by the Pakistan Institute of Development Economics (PIDE) sets the youth unemployment rate at around 8.9%; underemployment affects many more young people.
In other developing countries, programmes aimed at skill development have been effective. For example, the Skill India programme trained over 40 million people in just five years and led to pathways of greater employability and entrepreneurship for many. An initiative in Pakistan, if well-executed, holds the promise of delivering similar results.
We need a multi-pronged approach to rectify this situation.
The current education system is tragically out of touch and favours repetition of facts over intelligent discourse. Yet, we know that the skills essential for the modern economy—robotics, AI, and data science, for starters—are best taught young. We need to overhaul our curricula, retrain our teachers, and look to public-private partnerships to bridge the funding and expertise gap in transforming our nation’s schools.
All in all, not everyone needs the traditional education path leading to becoming a doctor or an engineer. What many of our young people really need is the kind of education you might receive in a field like robotics or automation—educations that open up business and career opportunities in a rapidly changing world. Expanding programmes those offer skill development are often overlooked but could greatly enhance the employability of our youth.
The burgeoning global startup economy offers Pakistan an opportunity to grab a slice of the pie. Successful enterprises have emerged from Pakistan and have joined the pantheon of startups that have found success – and funding. Encouraging investment in startups, especially tech-based ones, through tax breaks and “seed” funding could further boost that spirit of entrepreneurship.
Artificial intelligence isn’t merely a buzzword; it is the upcoming thing in business. Automating run-of-the-mill activities to unfurl greater understanding of data isn’t just happening in the United States and Europe; it is something Pakistan can take full advantage of. AI has, without question, the potential to bring about an industrial revolution here.
Think about how artificial intelligence could enhance agriculture, which is still our economic backbone. AI-driven precision farming can significantly boost yields and ensure food security. In that context, McKinsey research conservatively puts the potential boost in productivity at 20%. That’s not too bad, and also same researchers believe that with AI in the healthcare sector 2% to 4% could be added to the annual rate of increase in productivity.
In the world of commerce, AI can create a lot of efficiencies in the sectors of manufacturing, logistics, and retail.
To seize these opportunities, we must invest in AI R&D; we must invest in labs, pushing emerging technologies toward commercial adoption. We must have policies that pull these commercial opportunities into the private sector. The National Incubation Centers and Special Technology Zones show us moving in that direction; however, we must pick up the pace.
In our fast-changing world, continual upskilling and unprecedented “reskilling” are essential. Creating and expanding online learning platforms, combined with offering substantial scholarships for technology courses and certifications, can tip the scales toward a substantially different human capital outcome.
Innovation occurs in the presence of investment. We must put our money where innovative ideas are born—at universities and in the private sector. One key way to do this is by incentivizing research and development with tax breaks, grants to technology startups, and partnerships with global tech titans.
Changing people’s minds takes time, but it is necessary. We have to honour risk-taking, learn from our mistakes, and support creativity in every sphere of our lives.
At a crossroads, Pakistan is faced with choices that will dictate whether in the near future we will be a thriving, tech-driven economy or stuck in the past. The good news is that we have the raw ingredients for success: a young and dynamic population; a growing tech ecosystem; and a strategic location. (Please no discussion on any strategic capability other than our youth and its potential…)
“Vision without action is a daydream. Action without vision is a nightmare. The future demands both—bold ideas and bold execution.”
Yet, having potential is not sufficient. We need audacious leadership, unambiguous vision, and a nimbleness to embrace change. If we have these things, then the future is there for us to seize. If we can’t muster these things then it’s hard to see what else, we have to offer…
Copyright Business Recorder, 2025
The writer is a Harvard Alumni and tweets as @kashifmateenpk
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