Pakistan is on the brink of a digital transformation, with its digital economy projected to contribute an impressive $60 billion to the national GDP by 2030. A significant driver of this growth will be artificial intelligence (AI), which is expected to account for $10–$20 billion of this expansion, according to Dr. Sohail Munir, an advisor to the Saudi Data and AI Authority (SDAIA).

Speaking at the AI Convergence Summit Pakistan, Dr. Munir highlighted the transformative potential of AI, stating that by the end of the decade, it could represent up to 10% of Pakistan’s GDP. This projection aligns with global trends, as AI is set to contribute a staggering $15.7 trillion to the world economy, surpassing the combined GDP of China and India.

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The AI Opportunity for Pakistan

Dr. Munir referenced a PwC report that suggests AI could impact Pakistan’s GDP by 5.6% by 2030. He emphasized the importance of Digital Public Infrastructure (DPI) as a key enabler of this growth, predicting that Pakistan’s overall GDP could rise to $600 billion by then, with AI and digitization playing a pivotal role.

Meanwhile, Ahmed Hashim, CEO of Cygnis, shared that AI is already a cornerstone of Pakistan’s tech export market, with 30% of their IT exports based on AI solutions. This reflects the growing global demand for AI-driven products and services, though Hashim acknowledged that local demand for AI remains limited.

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Challenges and the Way Forward

Despite this promising outlook, challenges remain. Habibullah Khan, CEO of Penumbra, pointed out that many Pakistani firms prioritize low-cost services over tailored AI solutions that address specific business needs. In contrast, Indian firms have successfully engaged clients with solution-oriented approaches, such as mitigating non-performing loans or streamlining customer onboarding processes.

To stay competitive, Pakistani firms need to adopt a similar model, focusing on customized AI applications to attract international clients.

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A Call to Action

The summit concluded with a strong message: Pakistan must embrace AI’s potential not just for economic gains but also as a means to address pressing business and societal challenges. By fostering innovation and aligning with global AI trends, Pakistan can secure its place as a significant player in the global digital economy.

As the world enters the AI revolution, the time is ripe for Pakistan’s tech industry to evolve and lead the charge in creating AI-driven solutions that not only drive exports but also transform the local market.