KARACHI — Pakistan has launched its first National Artificial Intelligence Policy, a comprehensive plan aimed at developing AI infrastructure, training one million people in AI-related skills, and promoting responsible and ethical use of the technology in line with global standards, according to a copy of the policy reviewed by Arab News.
The Ministry of IT & Telecom shared the document on Wednesday, noting that the policy is intended to transform Pakistan into a knowledge-based economy through investment in research, innovation, and skills development, while safeguarding personal data and human rights.
The National Artificial Intelligence Policy – 2025 outlines a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure, and international partnerships. It introduces a National AI Fund, with a permanent allocation of 30 percent of the R&D Fund managed by Ignite, a government technology financing body supporting research, startups, and ICT innovation.
The policy also establishes Centers of Excellence in AI in major cities and sets a target to achieve 90 percent public awareness of AI by 2026. It aligns with the International Telecommunication Union’s AI for Good initiative and the UN Sustainable Development Goals.
“The Artificial Intelligence (AI) Policy 2025 is a pivotal milestone for transforming Pakistan into a knowledge-based economy,” the policy’s foreword states. It adds that the policy will “establish an ecosystem necessary for AI adoption … by ensuring responsible and ethical use of AI.”
Under the plan, the Centers of Excellence will facilitate demand-driven research and development, provide access to advanced computing labs, and run incubation and training programs aligned with national priorities.
On security, the government will implement AI-integrated guidelines to ensure end-to-end protection during the development and deployment of AI systems, and will mandate transparency and disclosure of AI use in the public sector.
Internationally, Pakistan aims to pursue bilateral and multilateral agreements with AI-leading nations, participate in global AI forums, and align its AI regulations and standards with international best practices to ensure interoperability, data privacy, and security.
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The Ministry of IT & Telecom said that an AI Council, chaired by the federal IT minister and including representatives from academia, industry, provincial governments, and civil society, will oversee policy implementation.
The AI policy is part of a broader effort to modernize Pakistan’s digital infrastructure and foster an innovation-driven economy. Under the “Uraan Pakistan” five-year National Economic Transformation Plan (2024–29), the government is prioritizing digital transformation through expanded ICT exports, support for freelancing, and the establishment of a “Quantum Valley” for high-tech innovation.
Complementary initiatives include AI-powered surveillance in Islamabad’s Safe City program, a Power Equipment Manufacturing Dashboard, and Zong’s locally hosted AI-powered cloud platform, demonstrating the government’s push to modernize security and enterprise systems.
Pakistan is also advancing in the digital finance and cryptocurrency sectors. The State Bank of Pakistan is piloting a central bank digital currency (digital rupee), while legislation to license and regulate virtual assets is nearing completion. The government established the Pakistan Crypto Council (PCC) in March 2025 to shape blockchain policy, with Binance co-founder Changpeng Zhao serving as strategic adviser.
In May, Pakistan announced a Strategic Bitcoin Reserve, committing to hold bitcoin in a sovereign wallet and earmarking 2,000 MW of surplus electricity for bitcoin mining and AI data centers, part of a broader plan to convert energy surplus into digital economy infrastructure. The Virtual Assets Act, 2025, created the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee crypto businesses under FATF-aligned standards.
Crypto adoption is accelerating, with users projected to exceed 27 million by year-end and digital asset revenues nearing $1.6 billion. Reports indicate that Pakistan is fast-tracking the integration of crypto into formal sectors such as banking, foreign exchange, and gold trading, signaling a strategic push toward mainstream digital finance adoption.