Govt unveils National AI Initiative with seven innovation hubs

The Ministry of Information Technology and Telecommunication (MoITT) has unveiled an ambitious nationwide plan to establish seven Artificial Intelligence (AI) Hubs across Pakistan under the newly launched National Artificial Intelligence Advancement Initiative (NAAI), aiming to incubate 560 AI startups, distribute non-dilutive seed grants to 150 startups, and position the country as a regional hub for AI-driven innovation.

The initiative, launched as part of the implementation of Pakistan’s National AI Policy, marks one of the government’s most comprehensive interventions to build an institutional AI ecosystem by bringing together academia, industry, startups, researchers, investors and the public sector under a single national framework.

According to official documents of the ministry, MoITT will select a single bidder—either an individual company or a joint venture/consortium—to design, establish, operate and sustain AI Hubs in Islamabad, Lahore, Karachi, Peshawar, Quetta, Muzaffarabad and Gilgit.

The selected entity will be responsible for developing fully operational AI innovation centers equipped with modern office infrastructure, high-speed internet, collaboration spaces, multimedia facilities, mentorship rooms, hybrid meeting infrastructure and dedicated workspaces for AI startups.

The AI Hubs are intended to become regional innovation centers focusing on practical AI applications across priority sectors, including healthcare, agriculture, education, fintech, public-sector governance, smart and sustainable cities and other emerging technology domains.

Under the two-year programme, each hub will induct 20 AI startups per cohort, with two cohorts every year, resulting in 40 startups annually at each hub and 280 startups every year across all seven centers. Over the project’s two-year duration, a total of 560 startups will pass through the incubation programme.

Beyond physical infrastructure, the successful bidder will be required to design and deliver a comprehensive innovation ecosystem featuring AI boot camps, accelerator programmes, incubation support, thematic AI challenges, hackathons and startup mentoring.

The RFP also places significant emphasis on commercialization, requiring the operator to connect startups with venture capital firms, incubators, accelerators, research institutions and technology companies to improve investment readiness and market access.

One of the programme’s most significant components is the administration of 150 non-dilutive seed grants for AI startups. While the grant funding will be provided separately by MoITT and will not form part of the contractor’s financial proposal, the selected bidder will design and implement a transparent nationwide mechanism for outreach, application processing, technical evaluation, selection, grant disbursement, monitoring and post-award support.

The ministry has directed that the funding programme be merit-based and supported by clearly defined key performance indicators, milestone-based disbursements and robust monitoring mechanisms to ensure accountability and measurable outcomes.

To stimulate innovation nationwide, the operator will also organize two national AI Hackathons and four AI Awareness Sessions, bringing together students, entrepreneurs, researchers, policymakers and international experts to accelerate AI adoption and build technical capacity.

The awareness campaigns will be complemented by structured capacity-building programmes designed to improve AI skills among startups, professionals, university students and public-sector officials.

The ministry also expects the AI Hub operator to develop long-term financial sustainability models through industry partnerships, membership programmes, sponsored initiatives, commercial training services and grants, reducing reliance on government funding over time.

In addition, the selected bidder will establish governance frameworks, operational compliance systems, monitoring tools, impact assessment mechanisms and periodic reporting structures aligned with MoITT’s oversight requirements.

The RFP further requires the operator to cultivate strategic partnerships with universities, research centers, government institutions, domestic and international technology companies and global AI research networks to facilitate collaborative research, pilot deployments and commercialization of AI products.

Recognizing the importance of inclusive innovation, the ministry has directed bidders to ensure meaningful participation of women and individuals from rural and underserved communities throughout programme implementation, aligning the initiative with Pakistan’s commitments under the Sustainable Development Goals (SDGs).

Initially, the contract will be awarded for one year, with the possibility of extension for another year based on performance. However, bidders are required to submit financial proposals covering the entire two-year implementation period.

The launch of NAAI signals the government’s intention to move beyond policy formulation toward building institutional infrastructure capable of supporting AI entrepreneurship, talent development and commercialization at scale. If implemented effectively, the initiative could significantly strengthen Pakistan’s emerging AI ecosystem by creating a coordinated national platform connecting startups, investors, academia and industry while accelerating the country’s transition toward a knowledge-based digital economy.