Pakistan’s digital economy is poised for major growth, with forecasts predicting it will add $60 billion to the country’s economy by 2030. A substantial portion of this growth, estimated at $10 to $20 billion, is expected to come from advancements in artificial intelligence (AI).
Dr. Sohail Munir, an advisor to Saudi Arabia’s Data and AI Authority (SDAIA), spoke at the AI Convergence Summit Pakistan on Wednesday, explaining that AI could contribute as much as 10% to Pakistan’s GDP by the end of the decade, with AI accounting for one-third of this growth. He referenced a PwC report suggesting that AI could boost the GDP of countries like Pakistan by 5.6% by 2030. On a global scale, AI is projected to add up to $15.7 trillion to the global economy, surpassing the combined GDP of China and India.
Dr. Munir also highlighted that Pakistan’s GDP could reach $600 billion by 2030, driven largely by advancements in AI and digital technologies. He emphasized the importance of developing Digital Public Infrastructure (DPI) to support this growth.
In the local tech sector, AI is already making an impact. Ahmed Hashim, CEO of Cygnis—an IT company involved in Pakistan’s growing tech export market—reported that 30% of their IT exports are AI-based. He stressed the need for Pakistan to position its tech industry at the forefront of the AI revolution, which is expected to gain significant momentum in the coming years.
Arsalan Akhtar, president and co-founder of Cygnis, pointed out that while local demand for AI services remains low, international pressure is driving Pakistan’s top IT firms to expand their AI capabilities. Around 20%-30% of their exports are now AI-driven.
However, Habibullah Khan, CEO of Penumbra, raised a concern about a gap in Pakistan’s AI sector. He noted that many local companies focus on offering low-cost services rather than developing AI solutions that address specific business challenges. He contrasted this with Indian firms, which engage directly with clients to create AI solutions for issues like non-performing loans and onboarding processes. Khan argued that adopting a similar proactive, solution-oriented approach could help Pakistani firms attract more customers and better compete in the global AI market.
The summit concluded with a call for Pakistan to place greater focus on AI’s potential to solve real-world business problems and drive further economic growth.
