Pakistan is gearing up for a significant leap in Artificial Intelligence (AI) as the National Assembly Standing Committee on IT and Telecom was informed that the country’s pilot AI policy will be finalized by the end of this month. This move comes as part of broader discussions on digital transformation, IT infrastructure development, and policy frameworks essential for Pakistan’s tech-driven future.
AI Policy Nears Completion: A Game Changer for Pakistan
The IT Ministry assured the committee that the AI policy framework is in its final stages, with consultations actively underway. The goal is to establish guidelines for AI adoption, data security, and ethical AI practices that align with global standards.
This policy is expected to shape Pakistan’s AI landscape, fostering innovation in healthcare, education, finance, and governance. However, delays in legislative approvals remain a concern, which the committee aims to address promptly.
Data Protection Bill Faces Unjustified Delays
During the session, Committee Chairman Syed Aminul Haq strongly criticized the delay in finalizing the Data Protection Bill. This bill is crucial for protecting user data and regulating digital security, ensuring citizens’ privacy in an increasingly digital world.
The IT Ministry assured that consultations with stakeholders are ongoing, and the bill is expected to be finalized soon. However, concerns remain about bureaucratic delays affecting Pakistan’s digital security regulations.
Major IT Investments and Budget Allocation
A key discussion point was the Public Sector Development Program (PSDP) funds for 2024-25. The committee was informed that Rs. 24 billion has been allocated for ongoing and new IT development projects, aiming to boost digital infrastructure nationwide.
The Special Communications Organization (SCO) is leading a Rs. 780 million mobile service expansion project, which will enhance network coverage in 28 new locations, significantly improving connectivity in underserved areas.
For the current fiscal year, Rs. 23 billion has already been allocated for IT development, with Rs. 2 billion spent so far. Looking ahead, the IT Ministry requires over Rs. 43 billion for the next fiscal year, which will be used for 18 major projects:
Six projects under SCO
Seven projects under the Pakistan Software Export Board (PSEB)
Hybrid power solutions for IT infrastructure
Hybrid Power Solutions for IT Expansion
A major development discussed was the Rs. 870 million hybrid power project for Azad Jammu & Kashmir and Gilgit Baltistan. This initiative aims to provide sustainable energy solutions for IT infrastructure, but it requires Rs. 500 million in FY26 for completion.
This project aligns with Pakistan’s push towards green energy solutions for IT expansion, ensuring uninterrupted power for tech hubs in remote areas.
Pakistan Eyes Growth in Semiconductor Industry
A significant revelation during the session was Pakistan’s potential in the semiconductor industry. Officials emphasized the massive revenue potential and confirmed government-to-government agreements for developing this sector.
Given the global semiconductor demand, Pakistan is looking to tap into this high-value industry, which could boost exports and create jobs in advanced electronics and chip manufacturing.
IT Parks: Karachi, Islamabad, and Quetta Development Plans
The committee raised concerns over the non-utilization of Rs. 6 billion allocated for Karachi IT Park. Despite being in the design phase for years, the project has made little progress.
Due to these delays, IT Ministry officials suggested transferring these funds to Islamabad IT Park, ensuring that the money is put to productive use.
Regarding Quetta IT Park, officials stated that it is still in the proposal stage, with no significant progress despite three years of discussions. However, the federal government has suggested allocating land for the project, and the IT Ministry plans to seek budget allocations in the next fiscal year to finally get it off the ground.
Is Pakistan Ready for a Digital Leap?
With the AI policy nearing completion, increased investment in IT infrastructure, and plans for semiconductor development, Pakistan is on the verge of a digital transformation. However, bureaucratic delays and slow execution of key projects remain a significant challenge.
As the government pushes for rapid technological advancements, the success of these initiatives will depend on efficient execution and timely policy approvals. The next few months will be crucial in determining Pakistan’s digital future.
