Pakistan is set to finalize its first-ever Artificial Intelligence (AI) policy by the end of February. This was revealed during a recent meeting of the National Assembly Standing Committee on IT and Telecom. The AI policy aims to enhance technological advancements and digital governance across the country. Officials assured that consultations with stakeholders are ongoing to ensure a comprehensive and effective policy framework.
AI Policy Development and Delays
During the committee meeting, it was confirmed that Pakistan’s pilot AI policy is in its final stages and will be completed this month. However, committee chairman Syed Aminul Haq expressed concerns over the unjustified delay in finalizing the Data Protection Bill. He emphasized the urgency of addressing data privacy and cybersecurity concerns. The IT Ministry officials reassured the committee that the bill is progressing and will be completed soon.
Public Sector Development Program (PSDP) Funds
The discussion also covered the allocation and utilization of funds under the Public Sector Development Program (PSDP) for the fiscal year 2024-25. The committee was informed that Rs. 24 billion had been allocated for various new and ongoing IT projects. The ministry detailed its funding priorities and progress updates for these projects.
Mobile Service Expansion Project
The Special Communications Organization (SCO) is working on a Rs. 780 million mobile service expansion project. This initiative aims to improve coverage across 28 new locations. The project is crucial in enhancing connectivity in remote areas and bridging the digital divide. Expanding mobile services will also contribute to economic development by providing better access to digital resources.
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IT Ministry’s Budget Utilization
The IT Ministry reported that over Rs. 23 billion had been allocated for development projects in the current fiscal year. However, only Rs. 2 billion has been spent so far. The ministry highlighted the need for additional funding, projecting a requirement of over Rs. 43 billion for the next fiscal year. These funds will support 18 projects, including six under the Special Communications Organization (SCO), seven under the Pakistan Software Export Board (PSEB), and hybrid power solutions.
Hybrid Power Project for AJK and GB
A key discussion point was the Rs. 870 million hybrid power project designed for Azad Jammu and Kashmir (AJK) and Gilgit Baltistan (GB). The project is expected to require Rs. 500 million in the fiscal year 2026. The initiative aims to provide sustainable energy solutions to support IT infrastructure and enhance connectivity in these regions. Reliable power sources are critical for the development of digital infrastructure and innovation hubs.
Potential in the Semiconductor Industry
Pakistan’s potential in the semiconductor industry was another major topic of discussion. Officials emphasized that the semiconductor industry presents significant revenue opportunities for the country. Government-to-government agreements have been established to promote sector growth. Investments in semiconductor manufacturing could lead to job creation, skill development, and increased export potential.
Karachi IT Park and Fund Utilization
Committee members raised concerns regarding the non-utilization of Rs. 6 billion allocated for Karachi IT Park. The project has remained in the design phase with little progress. IT Ministry officials revealed that they have proposed transferring these funds to Islamabad IT Park instead. Shifting resources to Islamabad aims to ensure optimal use of funds for IT infrastructure development.
Challenges with Quetta IT Park
The issue of Quetta IT Park was also brought up during the meeting. Officials stated that it remains only a proposal at this stage. Although the federal government has suggested allocating land for the project, discussions have been ongoing for three years without significant progress. The IT Ministry now plans to seek budget allocation for Quetta IT Park in the next fiscal year. Establishing IT parks in different regions is crucial for promoting digital innovation and regional economic growth.
Conclusion
Pakistan’s first AI policy represents a significant step toward technological progress. While the government is actively working on various IT and telecom projects, challenges related to fund utilization and project delays remain. Expanding mobile services, investing in semiconductor development, and addressing energy needs will play a key role in strengthening Pakistan’s digital landscape. The finalization of the AI policy by February marks a milestone in the country’s digital transformation journey.
