Pakistan Wants to Turn the AI Revolution Into an Opportunity — Here’s the Plan

Artificial intelligence is about to become one of the biggest industries on the planet, and Pakistan does not want to be left watching from the sidelines. That was the message from the country’s IT minister this week, as she told an international audience in Islamabad that Pakistan is determined to turn the AI revolution into an opportunity for jobs, growth and national strength.

Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja was speaking on the second day of the Margalla Dialogue 2026, a security and policy conference organised by the Islamabad Policy Research Institute (IPRI). Her panel was titled “Technology and Transformation of State and Society”, and her argument was simple: technology is already changing every part of life, from classrooms and hospitals to banks and battlefields, and the countries that steer that change will decide what the future looks like.

For Pakistan, the stakes are high: two-thirds of the population is young. If they learn to use AI, the country gains a workforce ready for the next economy. If they do not, Pakistan risks falling behind while others write the rules.

At a glance

• What happened: IT Minister Shaza Fatima Khawaja told the Margalla Dialogue 2026 in Islamabad that Pakistan is determined to turn the AI revolution into an opportunity for national development, economic growth and technological sovereignty.
• The big number: AI is expected to become a $4.8 trillion economic sector by 2033, affecting about 40 per cent of jobs around the world.
• The plan: A $1 billion investment in AI, training for one million young people in AI skills, and 10,000 AI PhDs within five years.
• The progress so far: Internet speeds in Pakistan have risen 60 per cent in two and a half years, fibre-optic connections have doubled, and 5G has launched with around 1.8 million users.
• Why it matters: The minister said the key question is no longer whether technology will change the world, but who will steer that change — and Pakistan wants a seat at the table.

The $4.8 trillion number, explained

The headline figure in the minister’s speech was the size of the AI economy that is coming. AI, she said, is expected to become a $4.8 trillion economic sector by 2033, and to affect roughly 40 per cent of the global employment landscape.

The 40 per cent figure does not mean that 40 per cent of jobs will disappear. The minister was careful on this point. AI, she said, will change the nature of employment rather than simply wiping jobs out. People who know how to use AI tools, she said, could become up to 100 times more productive than people with the same skills who do not use them.

What Pakistan is actually doing

The speech was not just about big numbers. The minister set out the concrete steps the government says it is taking, under the Digital Nation Pakistan vision that Prime Minister Shehbaz Sharif is personally overseeing through a structured roadmap covering connectivity, AI infrastructure and digital transformation.

First, money. The prime minister announced an investment of $1 billion in artificial intelligence during AI Week. According to the minister, that money will focus on four areas: infrastructure, skills, innovation and connectivity. Infrastructure means the computing power and data centres that AI needs to run. Skills means training people. Innovation means supporting start-ups and researchers. Connectivity means the fast internet that makes all of it usable.

Second, people. The government aims to train one million young people in AI-related skills and to produce at least 10,000 PhDs in the field over the next five years. One million trained young people would be one of the largest AI skills programmes in the developing world, and 10,000 doctorates would build the research base to design AI systems rather than just use ones built abroad.

Third, law and institutions. The minister described the Digital Nation Pakistan Act not as just another piece of legislation, but as the foundation of the country’s digital transformation. The Act created the Pakistan Digital Authority (PDA), which is now developing a National Digital Master Plan, along with sectoral plans covering agriculture, real estate, health technology and other areas. In other words, the plan is not only about technology companies. It is about using digital tools in farming, property, hospitals and government services.

Fourth, data. The minister said data is the foundation of digital transformation, and that data governance, security, privacy, trust and responsible access are essential. Pakistan is developing a National Data Governance Policy and piloting a National Data Exchange Layer – a system that lets different government departments share information securely. Dr Rehan Tahir, the PDA’s executive director, explained why this matters: the authority’s key role is to build links between the databases of the federal and provincial governments, because only when good-quality data is available can services improve and real needs be met.

The internet is already faster

One part of the speech that will matter most to ordinary Pakistanis was about the internet itself. The minister said Pakistan’s internet speed has increased by 60 per cent over the past two and a half years, while fibre-optic connectivity has doubled. Internet data usage has grown by two terabits per second, taking the country’s total live internet capacity to around seven terabits per second.

She also said that 5G services have been launched in Pakistan, with around 1.8 million users already subscribed to the technology.

These numbers matter because AI runs on connectivity: a tool that spots crop disease from a photo or translates a lesson needs a fast, reliable connection, and faster internet means more homes, schools and businesses can actually use the tools the government is talking about.

Pakistan was also ranked among the top 40 countries in the 2024 ITU Global Cybersecurity Index, a measure of how well countries protect their digital systems. That ranking is a small but real sign that the country’s digital defences are improving alongside its speed.

AI and the new kind of war

The Margalla Dialogue is a security conference as much as a technology one, and the second day’s discussion kept returning to the same uncomfortable subject: AI is changing warfare, and Pakistan cannot afford to lag behind.

Retired Brigadier Dr Rashid Wali Janjua said the new security threats would come from AI and the changing face of war. Warfare, he added, is becoming more lethal, customised and precise with the help of AI, and AI has made war very fast.

He also referred to Pakistan’s recent military confrontation with India – Operation Sindoor – saying Pakistan had succeeded against a much larger enemy by using what he called an “internet-centric kill chain”, while India had relied on its traditional advantage in air power. That is his assessment of the conflict, and it was presented as a lesson: in modern war, the side that moves information fastest can beat the side with more aircraft.

Akira Igata of the Economic Security Intelligence Lab at Tokyo University added that criminals are actively using advanced technologies and AI, and Japan could learn from Pakistan’s experience in dealing with terrorists.

Speakers also warned that the public does not yet fully trust AI-based government services, and failures have been seen in several countries.

The security debate: talks, not just force

The other headline from the day came from former national security adviser retired Lieutenant General Nasser Janjua, who called for an unconventional approach to counterterrorism – including talks with insurgents in Balochistan.

General Janjua said Pakistan was in the eye of the storm because of global power politics, and that non-traditional threats need unconventional solutions. “We need to engage Afghanistan as it was in the interest of that country too,” he said, “while we also have to talk to the leaders of insurgency and separatist movements in Balochistan. Conventional way of dealing with insurgents has to change.”

He also warned that the TTP’s presence in the Afghanistan-Pakistan border region threatens long-term trade ties stretching from Russia to Pakistan – a reminder that security and economics are linked.

His comments carry weight because they come from a former national security adviser, and the fact that talks were proposed openly at a major security conference in Islamabad marks a shift in the debate.

Professor Cheng Xizhong of China’s Charhar Institute warned that India’s efforts to change the demography of Kashmir and its withdrawal from the Indus Waters Treaty could make future conflicts more dangerous. Asked whether China could also stop water flowing into rivers that enter India, he replied: “China cannot do that – because we are not narrow minded and water is for all human beings, it should be stored and conserved but not denied.”

The global AI divide

One of the minister’s most important points was about who makes the rules for AI: most countries in the Global South have remained outside major AI governance initiatives, with only a few developed countries shaping the frameworks.

That matters more than it sounds. The rules being written now – about safety, about who owns AI models, about what data can be used to train them – will decide who benefits from the technology for decades. If Pakistan and other developing countries are not in the room, the rules will be written for someone else’s benefit.

She stressed the need for inclusive international cooperation, open-source AI models and fair access to AI infrastructure and digital transformation. Open-source models matter because they let countries use and adapt AI without paying a foreign company for every use, and without depending on systems they cannot inspect or control. That is what she meant by “technological sovereignty”: the ability of a country to shape its own digital future rather than renting it from others.

Pakistan is pursuing this through international forums including the UN AI Digital Compact and the Digital Cooperation Organization, a group of countries working together on digital policy.

What happens next

The speech set out a direction, not a finished result. The tests of whether it becomes real will come over the next few years, and they are easy to list.

The first test is the $1 billion. Announcing money is not the same as spending it well. The four areas – infrastructure, skills, innovation and connectivity – will need to show results: data centres built, courses delivered, start-ups funded, fibre laid.

The second test is the skills target. Training one million young people in AI and producing 10,000 PhDs in five years is an enormous undertaking. It will need universities, training institutes and employers willing to hire the graduates. If the training happens but the jobs do not follow, the programme will produce frustration rather than opportunity.

The third test is the institutions. The Pakistan Digital Authority, the National Digital Master Plan, the data governance policy and the National Data Exchange Layer are the plumbing of the whole vision. They are less glamorous than a $1 billion announcement, but they decide whether a farmer in Punjab or a patient in Karachi ever notices any difference.

The fourth test is trust. As the international speakers warned, people do not automatically trust AI-based government services. The government will need to show that its systems are accurate, fair and accountable – and to admit and fix mistakes when they happen.

The fifth test is the one the minister named herself: who steers the transformation. Pakistan’s argument was that the country should help shape AI, not simply receive it – protecting its languages, culture and values while building the skills to compete. Whether that ambition survives contact with budgets and politics is the story to watch.

Frequently asked questions

What did Pakistan’s IT minister say about AI?

IT Minister Shaza Fatima Khawaja told the Margalla Dialogue 2026 in Islamabad that Pakistan is determined to turn the AI revolution into an opportunity for national development, economic growth and technological sovereignty. She said AI is expected to become a $4.8 trillion sector by 2033 and affect about 40 per cent of global employment.

How much is Pakistan investing in AI?

The prime minister announced a $1 billion investment in AI during AI Week. The money will focus on four areas: infrastructure, skills, innovation and connectivity.

How many people will Pakistan train in AI?

The government aims to train one million young people in AI skills and produce 10,000 AI PhDs within five years.

Is Pakistan’s internet getting faster?

Yes. The minister said internet speed has risen 60 per cent over the past two and a half years, fibre-optic connectivity has doubled, and data usage has grown by two terabits per second to around seven terabits per second in total. 5G has launched, with around 1.8 million users already subscribed.

What is the Digital Nation Pakistan Act?

It is the law behind the country’s digital transformation plan. It created the Pakistan Digital Authority (PDA), which is developing a National Digital Master Plan and sectoral plans for areas such as agriculture, real estate and health technology. The PDA is also working on a National Data Governance Policy and piloting a National Data Exchange Layer so federal and provincial government databases can share information securely.

Why did the Margalla Dialogue discuss AI and warfare?

Because AI is changing how wars are fought. Speakers said warfare is becoming faster, more precise and more dependent on computing power, data and algorithms – and that Pakistan needs to keep up. Former national security adviser Nasser Janjua also used the occasion to call for an unconventional approach to counterterrorism, including talks with insurgent leaders in Balochistan.

Conclusion

Pakistan’s pitch at the Margalla Dialogue was, at its core, a bet on its own young people. The numbers are striking – a $4.8 trillion global AI economy by 2033, $1 billion of investment at home, a million young people to train, 10,000 doctorates to produce, internet speeds up 60 per cent and 5G already live. But the minister’s real message was about control: who steers the transformation, who writes the rules, and who benefits.

The next few years will show which of those futures arrives. The speech in Islamabad was the starting gun, not the finish line.

Sources

• Dawn – ‘Pakistan determined to turn AI revolution into opportunity’, 12 November 2026: https://www.dawn.com/news/2043907
• ProPakistani – Internet Has Become Faster, AI Will Not Kill Jobs: Shaza, 11 November 2026: https://propakistani.pk/2026/11/11/pakistan-internet-now-60-faster/
• TechJuice – Pakistan Determined to Become a Digitally Sovereign Nation; AI, Connectivity and Cybersecurity at the Core of National Transformation: Shaza Fatima Khawaja, 11 November 2026: https://www.techjuice.pk/pakistan-determined-to-become-a-digitally-sovereign-nation-ai-connectivity-and-cybersecurity-at-the-core-of-national-transformation-shaza-fatima-khawaja/
• CommerceNews – Shaza Fatima Forecasts Artificial Intelligence to Drive Global Economic Growth, 11 November 2026: https://commercenews.pk/artificial-intelligence-economic-growth-pakistan/

This article is for general information and education only. It is not legal or financial advice.