Pakistan’s AI Potential: Challenges, Opportunities, and the Road Ahead

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Abdullah Kamran

Despite the ongoing global surge in artificial intelligence (AI) development, Pakistan remains largely on the sidelines of this rapidly evolving technological landscape. Ovais Tariq, Karachi-born co-founder and CEO of Silicon Valley-based Tigris Data, attributes this lag to structural limitations and capital constraints that hinder large-scale AI adoption in the country. In an exclusive interview with Business Recorder, Tariq emphasized the need for long-term investment in energy, infrastructure, and human capital to enable Pakistan to meaningfully participate in the global AI economy.

Tigris Data, founded in 2021 by Tariq and two former colleagues from Uber, focuses on building robust data infrastructure for AI and machine learning workloads. The company recently raised a $25 million Series A funding round, led by Spark Capital and joined by investors including Andreessen Horowitz, highlighting the growing demand for AI infrastructure solutions. Tariq, a veteran of Silicon Valley who spent nearly six years at Uber helping develop the company’s in-house storage platform, stressed that Pakistan’s entry into AI requires more than talent—it demands reliable, large-scale infrastructure and sustained energy investment.

“AI is extremely energy-intensive,” he said. “If Pakistan wants to participate seriously, it must invest in clean and reliable energy, whether through nuclear power or solar energy. Without that, meaningful AI development is almost impossible.” Tariq pointed out that the high cost of graphics processing units (GPUs) and the massive electricity requirements for AI computing at scale pose formidable barriers for developing nations like Pakistan.

Despite these challenges, Tariq remains optimistic about Pakistan’s potential. He believes that investing in AI infrastructure will create multiple benefits, from upskilling the workforce to improving education and fostering innovation. “It’s not just about technology. It’s about creating a knowledge ecosystem that empowers people and builds capacity for the future,” he said.

Globally, AI is evolving at a breathtaking pace. Tech giants are investing billions into AI infrastructure, demonstrating the sector’s enormous scale and potential. Elon Musk’s xAI, for instance, recently announced a $20 billion data centre in Mississippi. European AI startup Mistral secured a strategic partnership with France’s military, and Amazon has pledged up to $50 billion in AI and supercomputing investments. These developments illustrate the capital-intensive nature of the industry, highlighting the scale of investment required for countries or companies to compete meaningfully.

Tariq emphasized that AI infrastructure is costly even for leading global players. “OpenAI, for example, spends billions annually on compute, storage, and networking. AI is becoming more cost-efficient over time, but right now it requires significant capital.” He stressed that Pakistan must be realistic about the investments needed to catch up and suggested strategic, long-term planning to overcome these hurdles.

Tigris Data is actively expanding to meet global AI demand. “We’ve been building data centres, renting power space to install hardware, and planning further expansion in Europe and Asia,” Tariq explained. The company’s growth reflects a broader trend in AI toward distributed computing, which, while creating new opportunities, also introduces operational challenges. For Tigris, the primary concern is not regulation but the speed at which infrastructure can be deployed to keep pace with surging global demand for AI systems.

Tariq also offered practical advice for aspiring entrepreneurs, especially those in Pakistan. He stressed the importance of market research and solving real problems that customers are willing to pay for. “Too often, I see people build products without understanding the customer or the market. You must know who will pay for your product and why it matters. That’s the core of successful entrepreneurship,” he said.

He encouraged startups to leverage AI tools themselves, highlighting how modern AI software can accelerate research, learning, and product development. “Building has become easier thanks to AI assistance. Use it to your advantage,” he added. Tariq believes that by combining innovative thinking, strategic investment, and access to AI tools, Pakistani startups can gradually carve a place in the global AI ecosystem.

While Tariq acknowledged the structural and financial challenges Pakistan faces, he emphasized that a long-term commitment could yield transformative results. Investing in AI infrastructure is not merely a technological imperative but a socioeconomic one. It can create high-quality jobs, strengthen education, improve research capabilities, and help integrate Pakistan into emerging global tech markets. “The benefits extend far beyond technology. AI can empower people, improve the economy, and position Pakistan for future growth,” he said.

He also highlighted the need for collaboration between the public and private sectors. “Government policies, energy planning, and infrastructure development must align with private sector initiatives to build a robust AI ecosystem,” he said. Tariq’s perspective reflects a broader reality: nations that fail to invest strategically risk falling behind in an increasingly competitive, AI-driven global economy.

In conclusion, while Pakistan currently remains a minor player in AI, the roadmap for participation is clear. Building energy infrastructure, securing investment, and fostering a skilled workforce are critical first steps. Entrepreneurs and startups must focus on market-driven innovation while leveraging AI tools to enhance productivity and product development. The global AI boom is ongoing, and with strategic planning and sustained investment, Pakistan has the potential to transform challenges into opportunities, creating a foundation for long-term technological and economic growth.

Ovais Tariq’s insights underscore that AI is not just a technology—it is a catalyst for broader societal and economic advancement. For Pakistan, the journey toward meaningful AI participation will require vision, patience, and commitment, but the rewards for those who invest wisely could be substantial, spanning job creation, education, innovation, and international competitiveness.

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