Pakistan Government Announces Financial Incentives To Accelerate AI Integration

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Pakistan is preparing a comprehensive roadmap aimed at accelerating the integration of artificial intelligence (AI) across key sectors of its economy, with the government planning to introduce a set of financial incentives including subsidies and tax exemptions. According to documents from the Ministry of Information Technology cited by a state-run news agency, the initiative is being designed in collaboration with the Centre of Excellence for Artificial Intelligence (COE-AI) and will focus on strengthening the country’s domestic AI ecosystem while supporting its digital transformation efforts. Locally developed AI solutions will be prioritised under this plan, giving them preference over imported alternatives as part of an effort to build national capacity and reduce dependency on foreign technologies.

The roadmap, which is scheduled for rollout between 2025 and 2026, will place emphasis on sectors such as education, healthcare, record digitisation, governance, agriculture, manufacturing, energy management, climate change mitigation, and the preservation of Pakistan’s cultural heritage. The government intends to expedite structural reforms and enhance competencies in public institutions, creating an enabling environment for AI adoption. Within the industrial domain, a network model approach is planned to provide full life-cycle support for AI projects, facilitating innovation, automation, and predictive solutions. This model will allow companies to receive ongoing assistance from conceptualisation to deployment, ensuring sustainable results from their AI initiatives.

To complement the financial measures, intellectual property protections will be strengthened to help innovators, researchers, and companies secure copyrights, patents, and trademarks for AI-based developments. In parallel, integration of AI with the Internet of Things (IoT) will be promoted to boost productivity, energy efficiency, predictive maintenance, and quality control within industries. The roadmap also outlines awareness campaigns, workshops, and specialised training programs to encourage AI adoption across both public and private organisations. IT boards will design sector-specific training courses and certification programs scheduled for launch in 2026, aimed at equipping the workforce with the skills needed for AI-driven environments.

As part of the initiative, at least 50 institutions will adopt an AI maturity model and project management guidelines to ensure compliance with international accountability and auditing standards. A Ranking Management System (RMS) will also be introduced to evaluate AI solutions, helping organisations select appropriate technologies while maintaining transparency. This system will be overseen by a government body and will feature regular updates and an annual trust index survey. To support broader adoption, the COE-AI and AI Directorate will provide technical, regulatory, computational, and financial assistance. Additionally, the National Artificial Intelligence Fund (NAIF) will be used to advance research and innovation, embedding AI into Pakistan’s industrial and economic framework. By combining subsidies, tax incentives, prioritisation of local solutions, and workforce training, the government aims to build a sustainable AI ecosystem capable of positioning domestic industries at the forefront of digital transformation.

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