Prime Minister Shehbaz Sharif on Monday announced the government’s plan to invest $1 billion in artificial intelligence (AI) by 2030.

The Indus AI Week 2026 is being held from February 9 to 15 (Sunday). The event’s website describes it as “Pakistan’s official national platform for artificial intelligence — where policy, innovation, talent and investment converge”.

“The Government of Pakistan is committed to investing $1 billion in AI by 2030, which will go a long way in building an AI ecosystem in our country,” the premier said while addressing the event’s inauguration ceremony in Islamabad.

Announcing further steps the country aims to take to keep up with modern technologies, PM Shehbaz said an AI curriculum would be introduced “not only in all federally-controlled or -run schools but all schools” of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).

He emphasised that the plan would be implemented in remote parts of Balochistan as well to “pair our youth for leadership and digital economy”.

The prime minister further said the government would provide 1,000 fully-funded PHD scholarships in AI to students across the country by 2030, which is aimed at building Pakistan’s “world-class research centre fully capacitated”.

“Last but not least, we will launch a nationwide programme to train 1 million non-IT professionals in AI skills, enabling them to enhance productivity and improving livelihoods,” he added.

“Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” PM Shehbaz affirmed.

He detailed that agriculture and mines and minerals would be among the areas of focus, adding that the government aims to empower the youth, which he said comprises 60 per cent of the country’s total population.

At the outset of his address, the premier noted that the Indus AI Week is “going to not only change the technological landscape of Pakistan, but this will be nothing short of a game-changer”.

“In collaboration with our most friendly and brotherly countries, we will start running on this shared pathway with great commitment and enthusiasm,” he added.

PM Shehbaz stressed that the government of his brother and ex-premier Nawaz Sharif was “striving our best to be in line with modern requirements and meet modern challenges”.

He recalled that as the chief minister of Punjab back then, the government undertook various initiatives which were “very, very relevant and important to the promotion of education, health, revenues and encouraging our youth”.

The premier highlighted that the Punjab government initiated a laptop distribution scheme in 2010 in the province’s schools and colleges.

More to follow

Source link

Karachi requires a strong foundation of corporate citizenship to balance the needs of shareholders with those of the community and the environment in the surrounding area. Practices elsewhere show that this could help attract consumers, promote brands, and enhance company loyalty, creating more successful businesses.

To quote Dave Massaron, General Motors Vice-President of infrastructure and corporate citizenship, “General Motors and Detroit’s DNA are interwoven. The two things just go together.” He further told CNN that, “The city is on an upward trajectory for the first time in my lifetime.”

During the last US financial crisis, Detroit’s reliance on the auto industry and on taxes had badly hurt the city, as free-trade agreements, automation, and incentives from southern states sent jobs away.

Economic literature shows that social spending and social protection are essential strategies for promoting inclusive and sustainable development, especially in developing countries like Pakistan, where poverty, inequality, and vulnerability are prevalent. That 762,499 professionals, skilled and unskilled persons left the country for work in 2025, says a Business Recorder editorial, “is perhaps the most telling statistic in a largely grim economic snapshot”. None of the sectors where remittances are coming in are labour-absorbing, says a political economist.

‘No nation can remain secure if its elite disengages itself from public life or retreats into private comfort’

Pakistan has approximately 40 million households with a national average monthly household income of Rs82,000, says Dr Farrukh Saleem, whereas the minimum survival threshold is Rs105,000. The average Pakistani household is Rs23,000 short every month, and that’s before education, healthcare or savings are even considered.

A talk on the ‘Future Expectations of the Elite of Karachi’ by Commander Karachi Vice Admiral Mohammad Faisal Abbasi was organised recently by the English Speaking Union of Pakistan. Vice Admiral Abbasi said those with means, education and access must contribute decisively to improve civic life in the city. This includes sustained engagement in education, healthcare, environmental management, urban planning and social welfare.

He said, “I see remarkable human capital, extraordinary entrepreneurial energy and unmasked strategic importance in Karachi. I also see persistent challenges, governance gaps, infrastructure stress and social inequality. No nation can remain secure if its elite disengages itself from public life or retreats into private comfort.” A globalised city must be led by its citizens who care deeply about its trajectory and are prepared to invest in its recovery and advancement.

Corporate citizenship is an effective way to nurture social protection. JPMorgan, which had a long-standing relationship with Detroit, has become a model for corporate investment in underserved communities. Its investment in the city, surpassing $2bn, has helped tens of thousands of Detroiters get apprenticeships or jobs, led to the preservation of thousands of affordable housing units and provided aid to countless small businesses.

Rocket Community Fund, in partnership with the city, helps delinquent homeowners pay off their property tax dues. Since 2020, the programme has prevented over 12,000 homes from being foreclosed upon.

In recent years, Pakistan has made significant efforts to improve the coverage and effectiveness of social spending, but the country still faces many challenges in this area.

Focused on education, health, and social protection, the Benazir Income Support Programme (BISP), analysts say, social spending remains low by regional standards, often falling below 1pc of GDP for social protection, despite IMF-mandated increases. Recent data shows a 7.5pc decline in social protection spending to Rs144.9bn (July–Nov FY26). BISP is the primary safety net, with a target to reach 10.2m families by the end of FY26.

That said, key challenges, according to researchers, include limited coverage, low education spending and reliance on foreign-funded projects. Provincial governments are responsible for most social sector spending, but they often underutilise resources, creating a gap in service delivery. There is limited capacity to measure, plan, and monitor social needs and spending.

Low social spending and economic growth are mainly attributed by development economists to unsustainable debt burden in developed and lower-income countries.

However, civic disorder begins when influential individuals believe that rules are optional, says Vice Admiral Abbasi, “Pakistan’s progress depends on strong institutions, not personalities.”

A report in The New York Times says, “For decades, crushing debts have spread misery in the world’s poor and lower-income nations. Now record or near record debt in the richest countries such as the United States, Britain, France, Italy and Japan threatens to hamper growth and sow financial instability around the world.

“At home, it means countries must make interest payments with money that otherwise could have been used for healthcare, roads, public housing, technological advances or education. The hunger for more and more loans has also pushed up borrowing costs, gobbling a bigger share of taxpayers’ money. It can also push up rates on business, consumer and car loans as well as mortgages and credit cards, and drive up inflation.”

In the United States, The New York Times reported that interest payments have tripled over the past five years, reaching roughly $1 trillion. They now eat up to 15pc of the US expenses.

Published in Dawn, The Business and Finance Weekly, February 9th, 2026

Source link

The prime minister’s recent incentives announcement has generated cautious optimism in a demoralised business community that has long watched peers in other countries outperform and outcompete them.

Corporate leaders attribute their weak global competitiveness to a flawed policy framework, arguing that compliant high-performing firms are often penalised by tax authorities through high tax rates imposed on a narrow tax base. Weary of chronic policy reversals, they say the state’s core challenge is to rebuild trust, not through personalised, short-term concessions, but by credibly reorienting the economy around a predictable, rule-based, and business-friendly framework.

The delay in unveiling a comprehensive industrial policy by the government has done little to dispel doubts about the government’s commitment to prioritising industrial activity over trading and speculation, or to building investors’ confidence. There is a perception that the existing policy framework has promoted imports and steadily eroded what remained of the country’s industrial base rather than strengthening it.

Widely interpreted as the first clear signal of a shift toward growth, since Shehbaz Sharif assumed office in 2022 after replacing former prime minister Imran Khan and continuing in power following the 2024 elections, the prime minister recently announced an incentive package for industry and exports.

‘Meaningful recovery will require reversing damaging policies and, more importantly, regaining exporters’ trust via credible long-term commitment’

The measures include a Rs4.04 per unit reduction in power tariffs, lower wheeling charges for industry, a three-percentage point cut in export refinance rates from 7.5 per cent to 4.5pc, and extension of the ‘blue passport’ (previously reserved for senior officials) to businessmen as a symbolic recognition of their economic contribution. For more than three years, the government’s overriding focus on stabilisation, while restoring macroeconomic order, has come at the cost of stifled growth.

Musadaq Zulqarnain, a leading exporter who serves on multiple corporate and official advisory forums, said the package would provide partial relief through lower energy costs, while the 18-month reduction in the Export Refinancing Facility would offer much-needed breathing space to exporters.

“However, far more is required to stimulate sustainable, long-term growth. With limited progress on broadening the tax base, the fiscal burden continues to fall disproportionately on salaried individuals and compliant corporates, an increasingly unsustainable outcome,” he noted.

Mr Zulqarnain also underscored the role of the State Bank, urging it to keep the real effective exchange rate within a stable 99-100 range to contain external imbalances and reduce balance-of-payments risks.

Majyd Aziz, President of the Employers Federation of Pakistan, offered a self-critical view, pointing to risk aversion within the business community itself. He noted that despite decades of incentives and subsidies, exports have grown slowly, suggesting weaknesses in productivity, efficiency, marketing, and over-reliance on external financing. Incentives alone, he argued, cannot compensate for gaps in the export ecosystem.

As for industrial policy, Mr Aziz said a credible framework must focus on sectors with genuine capability, indigenous resources, small and medium enterprises, Special Economic Zones, infrastructure, regulatory simplification, digitisation, logistic rationalisation, and lower taxes and inspections.

Younus Dagha, Chairman of the Policy Research and Advisory Council at Karachi Chamber of Commerce and Industry, supported the package, but considered it insufficient to restore export competitiveness. He argued that heavy, poorly designed taxation has already inflicted lasting damage on exports, including services.

“Meaningful recovery will require reversing damaging policies and, more importantly, regaining exporters’ trust via credible long-term commitment,” he said. That sort of recovery, Mr Dagha stressed, demands an integrated policy framework covering industrial, trade and investment policies.

Khurram Mukhtar, Patron-in-Chief of the Pakistan Textile Exports Association, welcomed the incentives but called them insufficient in scale or design to deliver targeted growth without a stable and credible ecosystem. Frequent policy shocks, he stressed, including retrospective super tax recoveries, abrupt provincial levies and shifting interpretations, continue to erode investor confidence.

He noted that public spending has not been meaningfully rationalised to create fiscal space for export-led growth, while provinces remain misaligned with competitiveness goals. “Short-term relief may lift utilisation, but investment and jobs require 12–24 months of policy stability. Countries that align policy with industry grow exports; those that debate narratives fall behind.”

Dr Khurram Tariq, former president of the Faisalabad Chamber of Commerce and Industry, argued that power tariff cuts and wheeling charges are essentially the same relief repackaged for optics. According to him, the industry already cross-subsidises the power sector. The recent tariff reduction, he said, merely returns a fraction of what is owed to industry under fair accounting.

While welcoming lower interest rates, he termed the move ‘too little, too late’. He also criticised the selective use of data that distorts interpretation and expressed scepticism about the forthcoming industrial policy, calling it heavy on optics but unlikely to restore competitiveness or spur industrialisation amid agile regional rivals.

Published in Dawn, The Business and Finance Weekly, February 9th, 2026

Source link