Islamabad 24 July: Pakistan’s artificial intelligence (AI) sector could contribute up to $10–20 billion to GDP by 2030, representing nearly 10% of the national economy.
AI is emerging as a key player in the country’s digital economy, with rising foreign investment, expanding job opportunities, and government-led infrastructure support paving the way for growth. 350,000 youth have been trained according to government sources.
This skills campaign aligns with broader infrastructure initiatives, including the launch of 43 new co-working spaces and 23 Special Technology Zones. These hubs now provide workspace to over 18,000 IT professionals, reinforcing Pakistan’s emergence as a regional digital hub. As a result, Pakistan’s IT exports surged to a record $4.6 billion in FY 2024–25.
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According to official estimates and industry trackers, the current size of Pakistan’s AI market is valued at approximately $100 million, but projections suggest it could contribute up to $10–20 billion to GDP by 2030, representing nearly 10% of the national economy.
The government has also made significant progress in attracting international investors. In April 2025, Pakistan hosted its first-ever Digital Foreign Direct Investment (FDI) Forum, securing $700 million in investment pledges in the broader IT and digital space. A notable $22 million of that has been specifically committed by MindHyve.ai, a global AI investor focused on building AI labs and startup incubators in Pakistan.
The country now boasts over 188 AI startups, with 19 having successfully raised funding, particularly in healthtech, edtech, fintech, and agri-AI sectors. AI is also playing an increasingly large role in IT exports, contributing an estimated 20–30% of the $3.2 billion in technology exports recorded in 2024.
Experts believe this momentum could be transformative if supported by the right policies and infrastructure. As part of its strategy, Pakistan has allocated 2,000 megawatts of energy to power AI and crypto data centers—marking one of the first major national infrastructure commitments to support the sector.
In terms of human capital, over 15,000 professionals are currently employed in AI-related roles, and this number is expected to grow to 50,000 by 2029. The Ministry of IT and Telecommunication has partnered with the Pakistan Software Export Board (PSEB) and global tech companies such as Google, Microsoft, and Huawei to train over 350,000 youth, many of whom are entering the AI workforce.
Despite the rapid growth, challenges remain. Pakistan’s AI tax revenues are not yet separately recorded, and most companies operate under the broader IT incentive frameworks. Industry insiders call for improved regulation, ethical frameworks, and public-private collaboration to ensure responsible AI deployment.
With the national AI Policy expected to be formally approved very soon, Pakistan appears ready to embrace AI as a core driver of innovation and economic development in the coming decade.
