Artificial intelligence is no more a science fiction; it is a reality, which is shaping every aspect of life. From fashion industry to health sector, from financial decisions to dieting routine, AI has been widely used. Countries all over the world are adapting it very rapidly. In order to join the global race and achieve maximum from the AI, Pakistan recently launched its AI Policy 2025. The policy is based on six important pillars.
The policy provides an AI Innovation ecosystem, followed by mass awareness and readiness and establishing a secure AI ecosystem. The other pillar of the policy is about transformation and evolution of various sectors and establishing nationwide AI infrastructure, and finally promoting international collaboration and partnership for maximum gain.
Before delving into further details, the phrase “Artificial Intelligence” means using machines that can learn from information and guide us in making better decisions. It is not something complicated or far-fetched; it is already part of our daily life.
Take agriculture for instance, a small sensor placed in the field can read the moisture level of the soil and tell the farmer exactly when the crop needs water. This avoids unnecessary watering, saves time and cost, and at the same time helps the crop grow better.
The same idea works in other areas as well. In factories, AI can point out when a machine is about to develop a fault so the work does not stop. In hospitals, it can help doctors detect diseases earlier by reading scans more quickly and accurately. Even in classrooms, AI tools can adjust lessons according to each student’s pace.
In short, AI is like a helpful companion that improves efficiency, reduces waste, and supports people in doing their work smarter.
Worldwide countries are investing heavily in AI. In 2024 alone, the corporate AI investment was USD 252.3 billion, highlighting the importance of AI in the coming days. The top investor in the field of AI in 2024 was US by investing a hefty sum of USD 109.1 billion as compared to China’s USD 9.3 billion, UK’s USD 4.5 billion and EU+UK USD 25.4 billion.
These numbers clearly show how important AI has become and how fast countries are moving in this direction. If invested properly, AI can bring drastic improvement in Pakistan. According to a recent study by the Pakistan Institute of Development Economics (PIDE), the use of AI can increase Pakistan’s GDP by 7 percent to 15 percent by 2030, which amounts to around USD 50 billion, if it is implemented properly and in its true spirit.
It can bring major improvements in different sectors. Agriculture alone can benefit by USD 12–13 billion through better productivity. The industrial sector can gain around USD 5 billion, while the services sector, which is already growing, can benefit the most, almost USD 25 billion by 2030.
The use of AI can transform various sectors drastically. For a developing country like Pakistan, it can enhance the agriculture productivity and the country can gain USD 12-13billion, similarly in the industrial sector the country can benefit up to USD 5billion and services sector the benefit can be USD 25 billion by 2030.
Moreover, it can also improve governance. The use of AI for traffic e-challans has become a talk in the town. In major cities like Lahore and Karachi, AI is playing its role in managing traffic. It can also be helpful in improving the civic responsibilities of citizens like controlling pollution, encroachment, vandalism as done by the UK, India and Singapore. Also, it will also reduce human intervention, thereby limiting avenues for corruption.
However, there is no shortcut to achieve all this. First, the country has to take some stringent measures to provide a clear pathways for the proper implementation of the policy. The country needs to double the R&D fund from the current 0.2 percent of GDP to 0.5 percent.
It will help to divert much funds for the establishment of an affective AI innovative ecosystem. Secondly, there is no need of spending on establishing new center of excellences. The already available infrastructure of TVET and NEVTTAC should be developed. It will not only reduce the cost but also bring positive change in a short span.
Thirdly, it is the need of hour to legislate proper laws and ensure the privacy and security of data, the Personal Data Protection Bill (2023) not yet implemented and still Pending. Lastly, the policy is over-optimistic by training thousands of people and transforming various sectors.
Instead some pilot project should be carried out in various sectors and on the basis of its success it should be expanded. It would be cost effective and more convincing for adaptation for various stakeholders.
Pakistan’s National AI policy (2025) can be a game changer for its 64 percent young population, if implemented properly. The country can be turned into a regional AI leader by adopting the modern AI system in its true soul in spirit.
However, without resolving the issues of funding, infrastructure and ethical enforcement, the policy cannot leave a substantial mark. By leveraging its young population and digital potential the country can transform this opportunity into a real result oriented outcomes.
The time will determine that has Pakistan taken any decisive action to transform this policy into reality or missed another golden opportunity toward progress and prosperity.
Copyright Business Recorder, 2025
The writer is a Research Economist at the Pakistan Institute of Development Economics (PIDE). He can be reached at Email: [email protected]
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