Turning WAICO into Pakistan’s AI advantage
Pakistan's founding membership in WAICO offers a strategic platform to influence global AI governance, accelerate its domestic AI ecosystem, and foster technological transformation through international cooperation and domestic investment.
- Pakistan's strategic role in global AI governance.
- Accelerating Pakistan's domestic AI ecosystem.
- Opportunities for AI research, technology transfer, and human capital.
- The necessity of domestic investment and policy for AI growth.
On 16 July 2026, the establishment of the World Artificial Intelligence Cooperation Organization (WAICO) in Shanghai marked a significant milestone in global AI governance. As one of its founding members, Pakistan has secured an opportunity that extends well beyond diplomatic recognition.
For a country striving to accelerate digital transformation and build a knowledge-based economy, WAICO provides a platform to influence international AI cooperation while strengthening its own technological capabilities.
Artificial intelligence is rapidly becoming the defining technology of the twenty-first century. PricewaterhouseCoopers (PwC) estimates that AI could contribute nearly USD 15.7 trillion to the global economy by 2030, while McKinsey projects that generative AI alone could generate between USD 2.6 trillion and USD 4.4 trillion annually. As countries compete not only to develop AI technologies but also to shape the rules governing them, Pakistan’s presence among WAICO’s founding members offers a timely opportunity to align its national priorities with emerging global standards.
For Pakistan, the greatest value of WAICO lies in the opportunities it creates rather than the title of founding membership itself. The organization provides a platform through which Pakistan can advocate for issues critical to developing economies, including equitable access to AI technologies, affordable digital infrastructure, responsible data governance, technology transfer, and international cooperation in AI capacity building. These priorities are closely aligned with Pakistan’s Digital Pakistan Vision and the ongoing development of its National AI Policy.
More importantly, WAICO can become a gateway for accelerating Pakistan’s domestic AI ecosystem. Pakistan’s IT and IT-enabled services sector has expanded rapidly, with exports exceeding USD 4 billion, while its young population and growing pool of software engineers provide a strong foundation for AI-driven growth. By leveraging WAICO’s collaborative framework, Pakistan can connect its universities, start-ups, and technology firms with leading international research institutions, creating new opportunities for innovation, commercialization, and investment.
One of the most promising areas is research collaboration. Pakistan can utilize WAICO to establish joint AI laboratories, promote collaborative research projects, and strengthen partnerships between academia and industry. Such initiatives can accelerate the development of AI applications in agriculture, healthcare, education, disaster management, climate resilience, manufacturing, and public administration sectors where AI can directly improve productivity and public service delivery while addressing Pakistan’s development challenges.
The organization can also facilitate technology transfer and knowledge exchange. Through partnerships with leading AI economies, Pakistan can gain access to advanced research, best regulatory practices, technical expertise, and emerging AI applications. Such cooperation would help reduce the country’s technology gap while enabling domestic firms to integrate into global AI value chains and attract foreign investment in high-tech industries.
Another major opportunity lies in human capital development. Pakistan possesses one of the youngest populations (over 60 percent) in the region, but realizing the AI opportunity requires a workforce equipped with advanced digital skills. WAICO can support collaborative training programmes, academic exchanges, scholarships, and professional certification initiatives that strengthen expertise not only in AI engineering but also in AI governance, cybersecurity, ethics, data protection, and digital regulation. Building this multidisciplinary talent base will be essential for sustaining long-term competitiveness.
However, international cooperation alone cannot substitute for domestic preparedness. Countries that have emerged as AI leaders have combined global engagement with sustained investments in research, institutions, and innovation. Pakistan must therefore complement its participation in WAICO with stronger national policies that encourage AI research, expand digital infrastructure, strengthen intellectual property protection, and improve data governance. Increased investment in research and development is particularly important, as Pakistan currently spends less than 0.2 percent of GDP on R&D, limiting its ability to commercialize emerging technologies.
Institutional coordination will also be critical. AI governance spans multiple domains, including digital policy, cybersecurity, education, finance, industry, and law. Pakistan would benefit from establishing a dedicated national institutional mechanism capable of coordinating AI strategy, supporting regulatory innovation, and representing the country’s interests in international AI forums such as WAICO.
Equally important is creating an environment where the private sector can innovate. Regulatory sandboxes, AI-focused venture capital funds, start-up incentives, and stronger collaboration between universities and industry can accelerate the commercialization of research while encouraging entrepreneurs to develop AI solutions tailored to Pakistan’s economic and social needs. Such measures would not only strengthen domestic innovation but also position Pakistan as a competitive destination for AI investment.
Ultimately, WAICO should be viewed as a strategic enabler of Pakistan’s technological transformation rather than simply another international organization. It provides Pakistan with an opportunity to participate in shaping the future of global AI governance while simultaneously accelerating domestic innovation, research collaboration, technology transfer, and human capital development.
Whether Pakistan emerges as a meaningful contributor to the global AI economy will depend not on its membership alone, but on how effectively it converts this opportunity into long-term national capability. By combining active international engagement with sustained investment in research, talent, institutions, and innovation, Pakistan can leverage WAICO to strengthen its AI ecosystem, enhance economic competitiveness, and position itself as an emerging technology leader in the Global South.
Copyright Business Recorder, 2026
The writer is a Research Associate at the Centre of Excellence for CPEC, Pakistan Institute of Development Economics (PIDE)
The writer is Head of Policy - Science, Technology & Innovation, Centre of Excellence for CPEC, PIDE