KARACHI: Pakistan has announced its first National Artificial Intelligence Policy, a wide-ranging plan seen by Arab News to develop AI infrastructure, train one million people in related skills and ensure responsible, ethical use of the technology in line with global standards.

The Ministry of IT & Telecom shared a copy of the new policy with media on Wednesday and said the policy is designed to transform the country into a “knowledge-based economy” through investment in research, innovation, and skills, while safeguarding personal data and human rights.

The “National Artificial Intelligence Policy – 2025” lays out a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure and international partnerships. It creates a National AI Fund by permanently allocating 30 percent of the R&D Fund managed by Ignite, a government-run technology financing body that supports research, startups and innovation in Pakistan’s ICT sector.

The policy also establishes Centers of Excellence in AI in major cities and sets targets for 90 percent public awareness of AI by 2026.

The plan aligns with the “AI for Good” initiative of the International Telecommunication Union 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 foreword to the policy document says, adding that it 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 in AI and allied technologies that align with national priorities,” provide access to advanced computing labs and run incubation and training programs.

On security, the government will develop AI-integrated security guidelines for end-to-end protection during the development and deployment of AI systems and mandate “transparency and disclosure of the use of AI systems” in the public sector.

Internationally, Pakistan will seek bilateral and multilateral agreements with AI-leading nations, participate in global AI forums, and “align Pakistan’s AI regulations and standards with international best practices to ensure interoperability, data privacy, and security.”

The Ministry of IT & Telecom said the policy’s implementation would be overseen by an AI Council chaired by the federal IT minister, with representation from academia, industry, provincial governments and civil society.

Pakistan is trying to make strides in modernizing its digital infrastructure and fostering an innovation-driven economy.

Under the “Uraan Pakistan” five-year National Economic Transformation Plan (2024–29), the government is prioritizing digital transformation by expanding ICT exports, supporting freelancing, and establishing a “Quantum Valley” focused on high-tech innovation.

This broader strategy is reinforced by efforts to digitize governance and public services: projects such as AI‑powered surveillance systems in Islamabad’s “Safe City” program, the rollout of a Power Equipment Manufacturing Dashboard, and the launch of Zong’s locally hosted AI-powered cloud platform exemplify the push to modernize both security and enterprise infrastructure.

Complementing these, the State Bank of Pakistan is piloting a central bank digital currency (digital rupee), with legislation nearly finalized to license and regulate virtual assets, aiming to integrate digital payments into the mainstream financial ecosystem.

On the cryptocurrency front, Pakistan is trying to evolve from regulatory ambiguity to institutional innovation. In March 2025, the government established the Pakistan Crypto Council (PCC) to shape blockchain policy and digital asset regulation, with key figures like Bilal Bin Saqib as CEO and strategic adviser Changpeng Zhao, Binance co‑founder, contributing technical and governance expertise.

In May, Pakistan unveiled a Strategic Bitcoin Reserve, committing to hold bitcoin in a sovereign wallet without plans to sell, while also earmarking 2,000 MW of surplus electricity for bitcoin mining and AI data centers — part of a broader push to convert energy surplus into digital economy infrastructure.

The Virtual Assets Act, 2025, enacted in July, created the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee crypto businesses under FATF-aligned standards .

Meanwhile, adoption is accelerating. Crypto users are projected to surpass 27 million by year-end, with digital asset revenues approaching $1.6 billion.

Reports also suggest that Pakistan is fast-tracking crypto integration into formal sectors like banking, foreign exchange, and even gold trading, signaling a strategic leap toward mainstream crypto incorporation.