Pakistan’s Youth Set to Lead Digital Economy with $1bn AI Push
News Desk
Islamabad: Vice Chancellor of Pakistan Institute of Development Economics (PIDE) Dr Nadeem Javaid has hailed the federal government’s newly announced $1 billion Artificial Intelligence (AI) fund as a transformative step toward building a future-ready digital economy and unlocking the potential of Pakistan’s youth.
Speaking to APP on the sidelines of the recently concluded Pakistan Governance Forum 2026, held under the theme “Reimagining Governance for URAAN Pakistan,” Dr Javaid said the initiative could lay the foundation of a robust national AI ecosystem.
The $1 billion fund aims to mainstream AI education and skills development across the country.
Key components include the introduction of AI curriculum in all federally run schools, the award of 1,000 fully funded PhD scholarships in AI and related disciplines by 2030, and a nationwide programme to train one million non-IT professionals in AI tools to enhance productivity and livelihoods.
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“Youth is a big reality of Pakistan, as 63 per cent of the population falls under the youth bracket. If we fail to utilize this effectively, it would become a serious challenge,” Dr Javaid said, emphasizing that sustained economic growth was critical to absorbing the expanding workforce.
He noted that the AI fund could stimulate job creation not only through employment in technology firms but also by enabling youth-led startups, SMEs and micro-enterprises. According to him, AI-driven service ventures and small-scale manufacturing units could emerge as new engines of economic activity.
“Along with jobs, entrepreneurial ventures are equally important. Hopefully, many new opportunities will emerge from this initiative where small companies and micro enterprises can take shape and contribute to economic activity,” he added.
Placing the initiative in a broader governance context, Dr Javaid stressed that development projects must operate within a comprehensive reform framework.
“Governance is an overarching structure that determines outcomes such as improved livelihoods, job creation and investment inflows,” he remarked.
Referring to the evolving second phase of the China-Pakistan Economic Corridor (CPEC 2.0), he said new initiatives were being shaped around mutual interests of Pakistan and China, creating synergy with national reform priorities under Uraan Pakistan.
He added that the government’s reform agenda, focused on exports, energy affordability, efficiency and environmental sustainability, was crucial to improving the investment climate.
Dr Javaid said Pakistan already possessed strong growth fundamentals, including a large workforce, a sizeable domestic market and an evolving industrial base, which could significantly boost GDP if effectively leveraged through technology and innovation.
However, he underscored that beyond policy measures, mindset and work ethics remained decisive factors. “You can make strict rules and SOPs, but without alignment of mindset, honesty and work ethics, desired results cannot be achieved,” he observed.
He concluded that improved governance, effective utilization of youth potential and a positive national outlook would be essential to translating AI-led reforms into sustainable and inclusive economic growth.
