Pakistan is preparing to take a significant step toward strengthening its position in the global digital landscape, with the country expected to become the first signatory of the Digital and AI Compact at the Global AI and Digital Summit 2026 in South Korea. The development highlights Pakistan’s growing focus on artificial intelligence, digital transformation, and international cooperation in emerging technologies.

Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja has travelled to South Korea to represent Pakistan at the international gathering. The summit will bring together representatives and policymakers to discuss the future of artificial intelligence, digital development, and equitable access to technology.

Pakistan to Present Its Vision for AI and Digital Transformation

A key part of Pakistan’s participation will be the presentation of its national roadmap for digital transformation and artificial intelligence. During a dedicated session on the Digital and AI Compact, Minister Shaza Fatima is expected to outline the country’s plans for adopting emerging technologies and expanding digital services.

Pakistan’s participation reflects its efforts to strengthen its digital infrastructure, encourage technological innovation, and improve access to modern digital solutions. Artificial intelligence is increasingly influencing industries, public services, education, healthcare, and economic development, making international collaboration an important part of national technology planning.

By presenting its priorities at the summit, Pakistan will have an opportunity to communicate its ambitions for building a more connected and technologically advanced society.

Meetings with Google and World Bank Officials

Alongside the summit proceedings, the IT minister is scheduled to hold important bilateral meetings with senior representatives of Google and the World Bank.

Her planned meeting with Google’s vice president is expected to focus on areas of mutual interest and potential cooperation. Discussions with the global technology company could provide an opportunity to explore ways to support Pakistan’s digital ecosystem and technological development.

The minister will also meet the World Bank’s vice president to discuss possible collaboration in digital and technology-related sectors. Such engagement could help identify opportunities for supporting digital infrastructure, expanding access to technology, and promoting sustainable digital development.

These meetings demonstrate the importance of partnerships between governments, international financial institutions, and global technology companies in advancing digital transformation.

Digital Inclusion Remains a Key Priority

An important theme of the summit will be ensuring that the benefits of digital technology reach people across different communities. Minister Shaza Fatima is expected to participate in discussions on fair access to the internet and digital services, with particular attention to digital inclusion.

For Pakistan, improving connectivity and widening access to digital opportunities remain important challenges. Affordable internet access, digital literacy, and the availability of reliable online services can help individuals, businesses, students, and communities participate more effectively in the digital economy.

Artificial intelligence also presents opportunities to improve productivity, support innovation, and enhance public service delivery. However, these benefits depend on responsible adoption, appropriate infrastructure, and access to the skills required to use emerging technologies effectively.

Why the Digital and AI Compact Matters for Pakistan

Becoming the first country to sign the Digital and AI Compact, if completed as anticipated, would represent a notable moment in Pakistan’s international digital engagement. It could strengthen the country’s visibility in discussions about the future of AI and digital cooperation.

The broader significance will depend on how Pakistan translates its commitments into practical initiatives. Effective implementation, investment in digital skills, stronger infrastructure, and cooperation with international partners will be essential to achieving meaningful results.

The summit also provides an opportunity for Pakistan to learn from international experiences and contribute to discussions about making artificial intelligence and digital services more accessible.

A Step Toward a More Connected Future

Pakistan’s participation in the Global AI and Digital Summit 2026 reflects its ambition to play a more active role in the evolving global technology landscape. The expected signing of the Digital and AI Compact, together with planned discussions involving Google and the World Bank, places digital transformation and international collaboration at the center of the country’s agenda.

While international commitments can open new doors, long-term progress will depend on turning policy goals into measurable improvements for citizens and businesses. With sustained investment, effective implementation, and a strong focus on digital inclusion, Pakistan has an opportunity to expand its technological capabilities and build a more inclusive digital economy.

The summit could therefore serve as an important platform for advancing Pakistan’s digital ambitions and strengthening its engagement with the global AI community.

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A recent World Bank assessment points to gaps in mobile broadband and electricity access as important obstacles. At the same time, Pakistan has a growing technology workforce, rising IT exports and ambitious plans to invest in artificial intelligence.

AI Ambitions Meet Infrastructure Reality

Pakistan wants to establish itself as a destination for AI-related services, particularly by using its large pool of young and technically trained workers.

However, advanced AI applications require more than skilled people. They depend on reliable internet connections, consistent electricity, computing capacity and access to relevant digital information.

Pakistan’s mobile broadband penetration remains below what the World Bank would expect given the country’s income level. This means that while internet access is widespread enough to support a growing digital economy, the depth and quality of connectivity remain concerns.

For AI adoption, having an internet connection is only the starting point. Workers and businesses need connections capable of supporting cloud applications, data-intensive services and continuous digital operations.

Electricity Could Limit Digital Growth

Power availability presents another challenge.

According to the World Bank, electricity access in Pakistan covers approximately 95.7% of the population. This is a significant achievement, but it still leaves millions of people without access.

Reliable electricity is especially important for the digital economy. Telecom networks, data centers, computers and AI infrastructure all require stable power.

Even where electricity connections exist, reliability and continuity can influence how effectively individuals and businesses can use digital technologies.

Closing the remaining electricity gap could therefore play an important role in expanding access to AI and other advanced technologies.

Pakistan Has a Strong Human Resource Base

Infrastructure challenges are only one side of the story. Pakistan also has a potentially valuable asset: its technology workforce.

The country produces around 75,000 IT graduates annually, creating a steady supply of young professionals who can potentially work in software development, data science, AI and other technology-related fields.

Pakistan’s digital services industry is also expanding. ICT services exports reached around $4.6 billion in FY2025-26, demonstrating the country’s growing participation in the global technology market.

This existing export base gives Pakistan an opportunity to move toward higher-value AI services rather than relying primarily on traditional IT outsourcing.

Government Plans Major AI Investment

Pakistan is also attempting to build a stronger national AI ecosystem through significant investment.

The country’s AI programmed is expected to involve approximately $1 billion through 2030. Its objectives include expanding computing infrastructure, developing a locally focused multilingual AI model and increasing the number of highly trained AI specialists.

The programmed also includes plans for 1,000 AI PhD scholarships and AI training for one million people outside the traditional IT sector.

The emphasis on non-technical workers is particularly important. AI is increasingly becoming relevant to areas such as banking, agriculture, healthcare, education, manufacturing and public administration.

AI Adoption Is Already Underway

Pakistan is not starting from zero when it comes to artificial intelligence.

The World Bank’s analysis of usage data from Anthropic’s Claude platform found that Pakistan had the highest absolute number of conversations among MENAAP economies.

Much of this activity, however, is concentrated in creative and media-related fields. Graphic design, content generation and translation are among the areas where AI usage is particularly visible.

This pattern may be linked to Pakistan’s large freelance community and its participation in global online work platforms.

The next challenge is to broaden AI adoption across more industries and move from simply using AI tools to redesigning business processes around them.

Urdu Needs Greater Representation

Another obstacle is language.

Much of the world’s AI training material is dominated by English and a handful of other widely represented languages. Urdu, despite being spoken by a large population, has a comparatively small digital footprint.

The World Bank reports that Urdu represented just 0.03% of global URLs collected by Common Crawl in July 2026.

Its share was higher in some open-source AI datasets, reaching around 0.6% on Hugging Face, but it remains far below English.

Limited training data can affect how accurately AI systems understand and generate a language. This can reduce the usefulness of AI tools for people who primarily communicate in Urdu.

Developing more high-quality Urdu digital content could therefore become an important part of Pakistan’s AI strategy.

Why “Small AI” Could Matter

Not every AI application requires powerful computers and high-speed internet.

The World Bank highlights the potential of what it calls “small AI”—lightweight applications designed to operate with limited computing power, lower bandwidth and intermittent connectivity.

Such solutions could potentially work through basic smartphones, SMS, voice systems or offline applications.

For Pakistan, this could provide a practical way to bring AI services to communities that are not fully connected to high-speed digital infrastructure.

Localized AI applications could also be particularly useful in areas such as agriculture, education, healthcare and public services.

Bridging the AI Divide

Pakistan’s AI challenge is ultimately about more than building sophisticated technology.

The country needs to ensure that the underlying infrastructure allows ordinary workers, businesses and communities to benefit from it.

That means expanding reliable broadband, improving electricity access, increasing digital and AI skills, building local-language datasets and encouraging businesses to adopt AI beyond a handful of creative occupations.

These areas are interconnected. Weak connectivity can limit AI use, insufficient skills can prevent businesses from benefiting from available technology, and limited local-language data can make AI less useful for large sections of the population.

Turning Potential Into Economic Growth

Pakistan has several ingredients that could support an expanding AI economy: a large young workforce, tens of thousands of IT graduates every year, a growing technology export industry and increasing interest in AI.

But these advantages will only translate into broad economic gains if the infrastructure keeps pace.

The World Bank’s assessment highlights both sides of Pakistan’s AI story. The country has the talent and ambition to participate in the global AI economy, but broadband, electricity and localization gaps could determine how widely those benefits reach.

For Pakistan, the next phase of the AI journey will therefore be about building the foundations as well as the technology. If infrastructure, skills and local-language capabilities improve together, AI could become an important new source of digital exports, productivity and employment.

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In July 2025, freelancers generated around $120.6 million in export receipts. The latest figures therefore represent an increase of nearly $54.9 million in foreign exchange earnings within a single month.

IT Freelancing Continues to Drive Growth

Information technology remains a major contributor to Pakistan’s freelance exports. IT-related freelance receipts climbed to approximately $106.8 million in July 2026, compared with $89.9 million during July 2025.

The continued expansion of IT freelancing highlights the growing demand for Pakistani professionals providing services such as software development, programming, web development, data-related work and other digital services to international clients.

However, the most striking growth came from the non-IT segment.

Non-IT Freelance Earnings More Than Double

Non-IT freelance earnings reached $68.7 million in July 2026, compared with just $30.7 million a year earlier. This represents growth of more than 120% over the same period.

The increase indicates that Pakistan’s freelance industry is becoming more diverse. Freelancers are increasingly earning internationally through fields beyond conventional IT, including digital marketing, graphic design, content creation, virtual assistance, writing and other professional online services.

This diversification could provide opportunities for a much larger section of Pakistan’s young workforce.

Skills Remain Critical for International Success

Industry representatives believe the momentum is encouraging, but maintaining such rapid growth will require continued investment in skills and professional development.

Pakistan Freelancers Association chairperson Ibrahim Amin has stressed that freelancers need more than technical expertise to succeed in international markets. Skills such as communication, business development, negotiation and client management can play an equally important role in building long-term relationships with overseas customers.

For students and young professionals in particular, freelancing offers a way to participate in the global digital economy without necessarily needing to relocate abroad.

Pakistan’s Broader IT Exports Also Rise

The positive freelance figures come alongside wider growth in Pakistan’s technology exports. The country recorded approximately $417 million in IT exports during July 2026, up 18% from $354 million in July 2025.

Monthly performance remained almost unchanged from June, when IT export receipts stood at around $416 million. This suggests that the technology sector entered the new fiscal year with relatively stable export momentum.

More Support Could Unlock Greater Potential

Government and private-sector initiatives aimed at developing digital skills could help Pakistan expand its pool of internationally competitive freelancers. Recognition programs and freelancer awards introduced by industry bodies are also intended to highlight the contribution of online professionals and encourage more people to enter the sector.

Nevertheless, sustaining the current pace will be the bigger challenge. A single month of strong growth does not guarantee the same performance throughout the year. Pakistan will need continued investment in training, digital infrastructure, international payment systems and market access if it wants freelance exports to become a significantly larger source of foreign exchange.

With millions of young people entering the workforce, freelancing could become an increasingly important component of Pakistan’s digital economy. The July 2026 figures provide an encouraging start, but sustaining and broadening this growth will determine how significant the sector becomes over the longer term.

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Why Pakistan Is More Vulnerable

Every year, thousands of graduates complete their education with hopes of finding stable, well-paying jobs. However, Pakistan has long faced limited formal employment opportunities, slow private-sector growth, and high youth unemployment. According to the World Bank, the rise of AI could add another layer of difficulty if businesses begin using technology to perform tasks that were previously handled by skilled professionals.

Many of today’s AI systems are capable of writing reports, analyzing data, generating software code, handling customer support, and performing administrative work. These are the same kinds of responsibilities often assigned to fresh graduates in fields such as business, finance, information technology, and communications.

Automation Is Not the Whole Story

Despite concerns about job displacement, the report does not present AI as a threat alone. Instead, it highlights that AI is likely to increase productivity across a much larger share of jobs than those it completely replaces.

In developing economies, only a small percentage of existing jobs are considered highly vulnerable to automation. At the same time, many occupations could become more efficient with AI assistance, allowing workers to complete tasks faster, make better decisions, and improve the quality of their work.

This means AI is more likely to transform jobs than eliminate them entirely.

Surprisingly, Wealthier Countries Face Greater Automation Risk

The report also points out an interesting trend: high-income economies are expected to experience a greater level of automation than developing countries. This is because richer nations have a larger concentration of office-based and knowledge-intensive professions that generative AI can perform more easily.

For Pakistan, the greater concern is not the percentage of jobs that may disappear, but the limited number of quality jobs already available. Even modest automation could make competition tougher for graduates if new employment opportunities are not created.

Massive Global Investment in AI

The World Bank highlights the enormous amount of money flowing into AI development worldwide. Technology giants such as Alphabet, Amazon, Meta, Microsoft, and Oracle are expected to invest hundreds of billions of dollars in AI infrastructure and data centers.

The scale of this investment demonstrates how rapidly AI technology is advancing and why countries cannot afford to ignore the digital transformation taking place across industries.

What Pakistan Should Do

The report recommends that developing countries focus on adopting AI rather than resisting it. Governments, businesses, and educational institutions should work together to prepare people for an AI-driven economy.

Some key priorities include:

• Expanding digital infrastructure and reliable internet access.
• Improving electricity availability.
• Teaching AI and digital skills through education and training programs.
• Supporting businesses that create new employment opportunities.
• Developing AI solutions that address local challenges in healthcare, agriculture, education, and public services.

These steps can help ensure that AI becomes a tool for economic growth rather than a source of greater inequality.

A New Skill Set for the Future

The future workforce will need more than academic qualifications alone. Employers are increasingly looking for individuals who can use AI tools effectively while also demonstrating creativity, critical thinking, communication skills, and sound judgment.

Rather than replacing human expertise, AI is expected to become a workplace assistant that enhances productivity. Those who learn to work alongside these technologies will be better positioned to succeed in the evolving job market.

The Bottom Line

Artificial intelligence presents Pakistan with both a significant challenge and a major opportunity. If adopted without proper planning, it could intensify employment pressures for educated youth. However, with timely investment in digital infrastructure, workforce training, and job creation, AI could also help improve productivity, strengthen public services, and support long-term economic growth.

The choices made today will determine whether AI widens existing employment gaps or becomes a powerful driver of innovation and opportunity for Pakistan’s next generation.

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The initiative is designed to modernize governance, simplify interactions between citizens and government institutions, and improve the overall delivery of essential services.

One Digital Identity for Multiple Services

A central feature of the government’s digital strategy is the introduction of a unified digital identity. Rather than using different systems for different services, citizens will eventually be able to access numerous government and financial services through one secure digital platform.

The proposed system is expected to cover services such as identity verification, healthcare, banking, financial transactions, and various government facilities. By bringing these services together, the government aims to make public administration more efficient while reducing paperwork and delays.

Initial Focus on High-Impact Sectors

To ensure the project delivers practical results quickly, the government has identified several priority sectors for the first phase of implementation. These include healthcare, agriculture, utilities, housing, and small and medium-sized enterprises (SMEs).

Officials believe that introducing digital solutions in these sectors will directly benefit millions of people while demonstrating the value of the broader digital transformation programmed.

Digital Property Records and Business Identity

The housing sector is expected to undergo significant modernization under the initiative. Every public and private property will receive a unique identification number, creating a centralized system for property records. This is intended to improve transparency, simplify property management, and strengthen record accuracy.

For the business community, especially SMEs, the government plans to establish a unified legal identity system. The objective is to simplify business registration, improve operational efficiency, and support entrepreneurship by creating a more streamlined regulatory environment.

Building a Stronger Digital Infrastructure

As part of the broader strategy, the prime minister has also directed federal institutions to begin using the newly established Sky 47 central data center. The facility will function as a shared platform for storing and managing government data, allowing departments to work more efficiently without maintaining separate data centers.

A centralized data infrastructure is expected to lower operational costs, strengthen cybersecurity, improve coordination among government agencies, and enhance the reliability of digital public services.

National Coordination for Digital Reforms

To maintain momentum, Prime Minister Shehbaz Sharif has called for an early meeting of the National Digital Commission. The commission will coordinate efforts between the federal government and the provinces while reviewing implementation plans and monitoring progress.

Established under the Digital Nation Pakistan Act 2025, the commission is responsible for guiding the country’s long-term digital transformation strategy and ensuring collaboration among key stakeholders.

Pakistan Digital Authority Leading the Transition

The Pakistan Digital Authority has been tasked with overseeing the modernization of government services and strengthening the country’s digital governance framework. Officials say that legal, administrative, and institutional preparations are progressing rapidly, with international best practices being incorporated into the overall strategy.

The government believes that adopting globally recognized digital standards will help Pakistan build a more secure, efficient, and transparent public sector.

Expected Impact on Citizens and the Economy

The National Digital Vision is expected to bring significant long-term benefits for both citizens and businesses. A unified digital ecosystem can improve access to government services, reduce administrative hurdles, increase transparency, and support data-driven decision-making.

The reforms are also intended to encourage economic growth by improving the business environment, promoting industrial development, strengthening trade, and creating a more efficient digital economy.

Looking Ahead

Pakistan’s National Digital Vision represents an important milestone in the country’s journey toward digital governance. By introducing a single digital identity and expanding digital infrastructure, the government hopes to make public services faster, more secure, and easier to access.

Although implementing such a large scale transformation will require continued coordination and investment, the initiative has the potential to reshape how citizens interact with government institutions while laying the foundation for a more connected and technology driven future.

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The initiative forms part of the government’s broader Digital Nation Pakistan vision, which seeks to modernize public sector operations through the adoption of emerging technologies and data-driven governance practices.

Bringing Government Operations into the Digital Age

Effective implementation of policies often depends on seamless communication and coordination between government departments. Recognizing this challenge, authorities have developed PMOS as a centralized platform that connects ministries and federal agencies directly with the Prime Minister’s Office.

The system enables officials to monitor the progress of directives, projects, and policy initiatives in real time. By digitizing administrative workflows, the government hopes to eliminate unnecessary delays and improve the speed with which decisions are executed.

This shift from traditional monitoring methods to a technology-based approach represents a significant advancement in how public institutions manage and track their responsibilities.

Real-Time Monitoring for Greater Accountability

One of the most important features of PMOS is its ability to provide continuous oversight of government activities. Officials can instantly view updates on assigned tasks, making it easier to identify bottlenecks and address issues before they impact project timelines.

The platform also includes an automated notification system that alerts responsible officers when deadlines are approaching or when assignments remain incomplete. Such proactive monitoring is expected to improve compliance, strengthen accountability, and ensure that government directives receive timely attention.

By increasing visibility into administrative processes, the system creates a more transparent framework for managing public sector performance.

AI-Powered Research and Decision Support

In addition to monitoring capabilities, the government has introduced a sovereign AI-based GPT tool to assist officials with research and administrative work.

The intelligent system is designed to analyze historical records, previous decisions, policy documents, and official directives. This allows government officers to access relevant information quickly without spending hours searching through extensive archives.

Beyond information retrieval, the AI tool functions as a digital assistant capable of supporting routine administrative activities and guiding users through established government procedures. Such capabilities can significantly improve productivity while helping institutions make more informed decisions.

Supporting Pakistan’s Digital Transformation Strategy

The launch of PMOS aligns with Pakistan’s ongoing efforts to build a digitally connected government ecosystem. Policymakers view technology as a critical enabler for improving governance standards and delivering better outcomes for citizens.

Officials involved in the project believe the platform will play a central role in implementing the National Digital Masterplan by promoting collaboration, data sharing, and efficient communication across ministries.

As governments worldwide increasingly integrate artificial intelligence into public administration, Pakistan’s adoption of AI-driven governance tools demonstrates its commitment to keeping pace with global technological trends.

Enhancing Public Service Delivery

The benefits of digital governance extend beyond internal government operations. More efficient monitoring and faster decision-making can directly impact the quality of services delivered to citizens.

The PMOS initiative complements other digital reforms already underway, including online public service platforms, digital taxation systems, and technology-enabled citizen engagement programs. Together, these initiatives aim to create a government that is more responsive, transparent, and accessible.

By reducing administrative inefficiencies and improving coordination among departments, the government hopes to deliver services more effectively while strengthening public trust in institutions.

The Road Ahead

The introduction of the Prime Minister’s Office System marks an important milestone in Pakistan’s digital governance journey. While the platform will continue to be refined before broader implementation, its launch signals a clear commitment to using artificial intelligence and modern technologies to improve public sector performance.

If successfully deployed across federal institutions, PMOS has the potential to transform how government agencies operate, enabling faster execution of policies, stronger accountability mechanisms, and more efficient service delivery.

As Pakistan continues its digital transformation efforts, initiatives like PMOS could serve as the foundation for a smarter, more connected, and future-ready government.

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Laying the Digital Groundwork

As part of this initiative, authorities plan to establish an AI Data Center alongside a Financial Data Warehouse at Nawaz Sharif IT City. These facilities will serve as the backbone for managing and analyzing large volumes of data, enabling smarter and faster decision-making across sectors.

The goal is to create a centralized system where data can be used effectively to power AI applications, particularly in finance and public administration.

Toward a Smarter, AI-Enabled Province

The project is being led by Ali Dar, who has emphasized the importance of using artificial intelligence in practical ways that deliver real benefits. The broader ambition is to position Punjab as a leading AI hub in South Asia by 2029.

This vision includes building a connected digital ecosystem where government institutions, financial services, and technology platforms work seamlessly together.

Transforming Access to Finance

A major highlight of the partnership is the introduction of AI-powered financial solutions. These tools are designed to make credit more accessible and efficient, especially for:

• Farmers
• Small businesses
• The housing sector
• Underserved populations

By using data-driven insights, the system aims to simplify loan approvals, reduce processing time, and expand financial inclusion across the province.

Encouraging Innovation and Collaboration

Beyond infrastructure, the initiative also focuses on fostering innovation. Plans are in place to collaborate with startups, academic institutions, and international tech firms to develop new AI applications and solutions.

This approach is expected to create a dynamic environment where ideas can turn into scalable technologies, benefiting multiple sectors of the economy.

Leadership Driving Digital Transformation

The initiative aligns with the broader agenda of Maryam Nawaz Sharif, who has prioritized modernization and digital governance. By embedding AI into public systems, the government aims to improve transparency, efficiency, and service delivery.

Economic Growth and Job Opportunities

The project is expected to have a strong economic impact, including the creation of over 100,000 jobs, particularly in tech and digital services. It will also strengthen the financial ecosystem by improving access to credit and enabling more informed economic decisions.

Final Thoughts

Punjab’s move to invest in AI-driven infrastructure marks a forward-thinking shift toward a more digital and data-centric future. With strong institutional support and a clear vision, the province is positioning itself as a regional leader in artificial intelligence.

If executed effectively, this initiative could not only transform financial services but also unlock new opportunities for businesses, entrepreneurs, and the wider population—setting the stage for long-term, technology-led growth.

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