How AI Could Add $10B–$20B to Pakistan’s Economy—and Why That’s Just the Start
1. The Economic Upside — AI as Game-Changer
Pakistan’s digital economy is projected to reach $60 billion by 2030, with AI expected to contribute $10–$20 billion of that growth—around 10% of GDP growth, according to Dr. Sohail Munir, advisor to Saudi Data and AI Authority. This aligns with PwC projections that AI could fuel 5.6% of GDP growth in countries like Pakistan. Simultaneously, India's AI economy could add up to $500 billion by 2035, status-boosting Ins reliance, annual GDP growth by 1.3%, if structural barriers like infrastructure and brain drain are addressed.
2. Pakistan’s National AI Policy: Targets That Signal Ambition
The federal 2025 AI Policy outlines bold targets:
- AI market estimated at $2.7 billion by 2030
- GDP boost of 7–12%
- 3.5 million AI-linked jobs
- 22.3% CAGR between 2024–30
- Training for 200,000 individuals annually; 3,000 postgrad scholarships; 15,000 interest-free financing slots by 2027 The policy’s structure spans six pillars—innovation, readiness, secure AI environment, transformation, infrastructure, global partnerships—showing a coherent developmental roadmap.
3. Strategic Levers to Unlock More Than Projections
Growth is possible—but only if Pakistan levers the policy smartly:
| Policy Lever | Strategic Impact |
|---|---|
| AI-friendly trade & energy policy | Attracts investment; lowers operational costs |
| Upskilling & scholarships | Bridges talent gap; fuels AI sector growth |
| AI-driven exports | Strengthens economic resilience, job creation |
| Digital infrastructure (5G, DPI) | Enables scalable AI innovation |
| AI in manufacturing & services | Supercharges productivity across sectors |
| Specifically, easing import duties on GPUs, offering subsidized power for data centers, and creating AI SEZs could unlock $1 trillion economy by 2035—as projected in U.S. and GCC benchmarks adapted through business recorder analysis. |
4. AI’s Multi-Sector Expansion: From Exports to Gov Services
- IT Export Explosion: Around 30% of exports are AI-based, driven by companies like Cygnis.
- Innovation Funds & Civic Tech: Policy plans 50,000 AI-driven civic projects and 1,000 local AI products within five years.
- Digital Infrastructure: The 2025 Digital Nation Act led to formation of Pakistan Digital Authority—a game-changer for centralized digital governance including AI.
5. Blueprint for Economic Leap: What Pakistan Must Do Now
- Push AI Trade & Energy Reforms: Lower entry costs for AI ventures
- Create a National AI Innovation Fund: Catalyze startups, research, infrastructure
- Deploy AI SEZs & Power Subsidy Zones: Attract global investment
- Drive Workforce Readiness: Connect scholarships to industry outcomes
- Scale AI in Exports: Enable global-market-ready AI services
- Venture Beyond Urban Sphere: Rural AI use cases (e.g., agriculture, language tech) to democratize growth
- Digitally Transform Government: Use AI to elevate public services and transparency
6. Conclusion – AI Is Not Optional
AI is not an elective—it’s the engine for Pakistan’s next economic era. With targeted policy moves, Pakistan can exceed the $20 billion projection and set a foundation for multi-sectoral, inclusive growth. The choice is clear: invest thoughtfully or let the future happen to us.
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Find more on AI-driven operational improvement in our article on Automations.