U.S. Chargé d’Affaires Natalie Baker has said that artificial intelligence (AI), advanced computing, semiconductors, robotics, and other emerging technologies are reshaping industries, transforming supply chains, and redefining economic competitiveness. She noted that the opportunity for AI to be the next major area of cooperation between the United States and Pakistan, stressing that countries which lead the adoption and development of AI will make significant leaps in economic development.
Addressing a roundtable on ‘Driving Inclusive Growth Through Collaboration in AI and Digital Technology’ convened by the Business Recorder Forum on Wednesday, she said that the greatest advances in AI and digital technology would come through collaboration among the public and private sectors, academia, and entrepreneurs, rather than through governments or companies acting alone.
“The United States remains deeply committed to advancing cutting-edge technologies, and to doing so alongside trusted partners who share our commitment to secure, reliable, and responsible AI. We view Pakistan as an important partner in the rapidly evolving technology landscape and see considerable potential for expanding bilateral commercial and technological ties,” she said.
According to her, we are at a pivotal moment, when the relationship between the United States and Pakistan has never been stronger; the two countries have witnessed substantial growth in their partnership under the Trump administration, particularly at the leadership level. The next step in the bilateral relationship should be cooperation in AI. The United States wants to be Pakistan’s ‘partner of choice’ in AI, with cooperation aimed at ensuring that populations remained secure while using the technology and, at the same time, leveraging AI for economic development and solutions to global challenges.
CDA Baker said the emerging AI partnerships could therefore serve both countries’ interests by combining technological leadership, investment, human capital and infrastructure to address economic and global challenges.
She was encouraged by the participation of Pakistani industrialists and academics who had studied in the United States or were working on software development and AI-related programmes with U.S. companies and capital. She said that the United States wants to promote trusted partnerships while maintaining its leadership and position in AI development. She added that U.S. leadership extends across areas including semiconductors, AI applications and models, adding that Washington wants partners capable of working alongside it to address global challenges. “America really wants to help promote partnerships that are trusted.”
Baker noted that Pakistan possessed tremendous resources and described its population as a major strength in developing an AI-driven economy. She welcomed plans to equip children with an understanding of AI from an early age, saying education should not only teach young people how to use technology but also make them aware of its potential risks. She added that the development of AI applications through US-Pakistan cooperation could unlock significant potential for the country.
The U.S. diplomat pointed to existing American-Pakistani partnerships in development and said the two countries are already working together to address several global challenges. She expressed confidence that similar cooperation in AI could produce a breakthrough for Pakistan’s economy and technology sector.
Referring to her visit to Punjab, the U.S. official said she had witnessed firsthand the potential of the province’s AI and digital technology sectors. She highlighted the use of advanced American technology for public safety in Punjab, the role of Pakistani investors such as Airlink in bringing American technology to Pakistan, and the growing interest of young Pakistani entrepreneurs in American educational exchange programs and AI ventures. Charge d’Affaires Natalie A. Baker said that she was particularly inspired by the Punjab government’s AI roadmap extending to 2029 and its vision for the future development of AI across the province.
She also referred to U.S.-Pakistan cooperation in software development through NetSol and the presence of Pakistan’s gaming and software development industry in Lahore. “The United States remains Pakistan’s largest export market and has been a leading source of investment in the country for more than two decades.”
“We see tremendous potential to further deepen our commercial partnership through increased trade, investment and collaboration in the cyber sector,” she said, adding that a predictable business environment, greater innovation and increased investment would enable Pakistan to unlock new opportunities for economic growth and shared prosperity.
The U.S. official also lauded Punjab Chief Minister Maryam Nawaz Sharif and Federal Finance Minister Muhammad Aurangzeb for their efforts to promote U.S.-Pakistan cooperation in AI and digital technology.
Meanwhile, Ali Dar, Adviser to Punjab Chief Minister on AI, highlighted the Punjab government’s roadmap related to the IT sector, saying they have set a target of becoming South Asia’s most AI-enabled province by 2029. “The roadmap presented in March is expected to generate more than 100,000 employment opportunities over three years and includes AI infrastructure, administration, citizen services, job skills, economic growth and governance.”
According to him, Punjab’s AI roadmap rests on six pillars: infrastructure, governance, AI for citizens, AI for government, AI for employment and AI for economic transformation. The provincial government plans to use AI and emerging technologies to enhance the skills and earning potential of freelancers, while making AI an integral part of education from an early stage.
“Skills and human capital constituted the third pillar of Punjab’s AI roadmap, with a particular focus on preparing the province’s large youth population for the rapidly changing technology-driven economy. Pakistan was among the top five freelancer markets globally, and Punjab’s youth contributed significantly to the country’s freelance workforce. We would be up-scaling the skill set of these freelancers and ensuring that instead of them doing petty jobs of US $500-a-month, we take it 20-fold,” he said, adding that AI and emerging technology courses could enable freelancers to move towards higher-value assignments earning US $5,000 to US $10,000 per month.
On education, Dar said the Chief Minister had already made AI part of the public-school syllabus from Grade One. “Children would initially be introduced to AI and technology through age-appropriate and interactive methods, while more direct technological learning and two-way interaction would be introduced at later stages.”
The Office of AI, he added, had also recommended making an AI module mandatory at the intermediate level so that students had a basic understanding of AI before deciding their higher-education and career paths. “This would ensure that before your child makes that decision of which path to pursue for higher education, whether it’s bachelor’s or master’s, at least they should have the basic knowledge about AI.”
He recognised the importance of academia and industry in the development of its AI ecosystem, saying his office was considering establishing an advisory board comprising representatives from academia and industry, without government representation, to obtain direct advice from stakeholders with expertise in the field. He stressed that the provincial government believed public-private partnerships were essential for scaling major initiatives.
Discussing the need for accelerated action on AI, Dar said that he had recommended to the Chief Minister that an ‘AI emergency’ should be declared in Punjab; his recommendation followed his visit to Shanghai for the signing of the World Intellectual Property Organisation (WIPO) agreement, where he observed the pace at which countries were advancing in emerging technologies.
He also recommended declaring the next year as the ‘Year of AI’ in Punjab and reallocating some resources from conventional development expenditure towards AI and emerging technologies; investment in emerging technologies could generate returns many times higher than conventional development spending. “Punjab needed to make timely investments in AI so that it could bridge the technological gap created over the past decade or more within the next few years.”
Referring to infrastructure, he said that the sixth pillar of Punjab’s AI roadmap focused on foundational and digital infrastructure, including computing capacity and data centres. “We understand that without this basic foundational layer, nothing is possible,” he said, adding that the provincial government was working to ensure Punjab had the infrastructure required to support its AI ambitions. “Punjab was also sitting on a ‘data goldmine’, with successive digitisation initiatives providing a strong foundation for AI development.”
Ali Dar said Punjab had an opportunity to emerge as a regional leader in AI, arguing that the province was still at an early stage of the global AI race.
In his address to the roundtable through video, Pakistan Software Export Board (PSEB) Chairman Faisal Jeddy observed that Pakistan was witnessing a strong growth in its technology sector, with local IT companies moving towards unicorn status, while the government was focusing on improved digital infrastructure, banking and remittance channels, AI capabilities and a skilled workforce to accelerate IT exports. However, he pointed out that Pakistan should develop a clear roadmap for producing technology unicorns and diversify its export markets beyond the United States, the United Kingdom and the Middle East.
He cited Turkiye as an example, saying Turkish officials had told him during a recent visit that the country currently had four technology unicorns and had set a target of reaching 100. “Pakistan should probably do the same,” he said, stressing the need for a deliberate strategy to develop technology companies capable of achieving global scale.
The PSEB Chairman also said that Pakistan’s IT exports had been growing by around 21 percent year-on-year over the past four years, making the sector one of the country’s fastest-growing areas, adding that the sector’s gross surplus had reached around 185 percent, describing it as unprecedented and the highest among sectors. He also disclosed that policy interventions were being pursued to address bottlenecks faced by the technology industry, particularly in banking and remittances. “Over the last maybe four weeks, our focus is to solve some of those problems,” he said, adding that positive developments were expected regarding the movement of IT-export proceeds into and out of Pakistan.
According to him, Prime Minister Shehbaz Sharif was closely focusing on the IT sector and that the government’s support was helping the industry take up its issues with the State Bank of Pakistan.
He also addressed concerns over the quality and reliability of Pakistan’s internet infrastructure, saying improvements were underway in both mobile and fixed broadband services. “The recent launch of 5G and investments by major telecom operators, including Jazz, Ufone and Zong, would improve mobile connectivity. While 5G availability was expected to expand over the coming months, an equally important development would be the improvement of existing 4G services. The government was seeking more consistent internet speeds across the country, including along major motorways, which would improve connectivity for people travelling and working remotely. Moreover, fixed broadband infrastructure was also being upgraded, although Pakistan’s international ranking had not improved as rapidly as desired partly because some legacy operators continued to rely on older copper-wire infrastructure. Satellite internet was also expected to become available in Pakistan after certain regulatory and technical issues were resolved.”
Turning to AI, he said that the technology represented both a challenge and a major opportunity for Pakistan’s IT ecosystem, adding that many countries were seeking to provide IT services and products to global customers and were now trying to incorporate AI into their offerings. “Pakistan as well as other countries were all trying very hard to capture as much of that market,” he added.
He said that the government was working to position Pakistan to take advantage of the emerging AI economy by investing in AI infrastructure on both the hardware and software sides. “Ignite, an organisation under the Ministry of IT and Telecommunication, had launched a request for proposals (RFP) for AI infrastructure and initiatives, which would form an important component of the country’s AI policy going forward.”
“The government was also working with major global technology companies to bring training programmes to Pakistan,” he said, naming Google, Huawei and Alibaba among companies being approached for training IT professionals.”
He talked about the collaboration with the Higher Education Commission (HEC), saying it was underway to upgrade university curricula and ensure that graduates were trained in emerging technologies rather than outdated skills. He stressed for developing a skilled workforce to achieve higher IT exports. “The government’s objective was not merely to increase the volume of IT exports but also to ensure that Pakistani professionals possessed the skills needed to compete in global markets.”
The PSEB Chairman also called for greater diversification of Pakistan’s IT export markets, saying Pakistani technology companies had historically concentrated their efforts on the United States, the United Kingdom and the Middle East, which together accounted for around 75 percent of Pakistan’s IT exports. “These markets would remain important, but substantial opportunities existed in other parts of the world that remained underserved by Pakistani technology companies. That is an excellent point where you talk about the diversity, as expanding into new markets could provide another major avenue for growth.”
Meanwhile, Bank of Punjab President Zafar Masud highlighted the role of digital financial infrastructure in delivering targeted government support, saying AI-based decision-making, digital identity, land records and instant payments could make public spending more transparent and reduce leakages. “The Kisan Card programme had digitally verified around one million farmers and facilitated approximately Rs400 billion in financing, with a recovery rate of 99 percent,” he added.
Masud agreed that Pakistan’s ability to benefit from AI would depend on coordinated action involving government, industry, academia, financial institutions and entrepreneurs, alongside reliable digital infrastructure and a workforce equipped with future-oriented skills.
Speakers including Salim Ghauri of NetSol Technologies, Syed Aun Abbas of the National Institute of Technology, Dr Agha Ali Raza from LUMS, Arif Iqbal, co-founder LAAM, Mahrukh Qadeer, Founder AI Product Strategist and Entrepreneur, Muhammad Ilyas of Systems Limited, Pakistan Software Houses Association (PASHA) Chairman Sajjad Syed and Shahzad Malik stressed that developing a skilled workforce was essential to achieving higher IT exports. They agreed that Pakistan’s ability to benefit from AI would depend on coordinated action involving government, industry, academia, financial institutions and entrepreneurs, alongside reliable digital infrastructure and a workforce equipped with future-oriented skills.