Saudi firm to establish AI hub in Pakistan to transfer knowledge, jointly develop solutions

Pakistan's IT Minister, Shaza Fatima Khawaja (second-left) pictured with President of Saudi Data and Artificial Intelligence Authority in Riyadh, Saudi Arabia, on October 2, 2025. (PID/File)
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Updated 07 October 2025
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Saudi firm to establish AI hub in Pakistan to transfer knowledge, jointly develop solutions

  • The development comes as both nations plan to forge partnerships in AI, cybersecurity and other tech fields
  • Pakistani software developers body says the initiative will boost training, innovation and startup collaboration

ISLAMABAD: Saudi Arabia’s GO Telecom company will establish an artificial intelligence (AI) hub in Pakistan this month that would help transfer knowledge and jointly develop innovative digital solutions, Pakistan’s information technology (IT) ministry said on Monday.

The decision to establish the GO AI Hub in Pakistan was made during a meeting between Pakistani IT Minister Shaza Fatima Khawaja and the leadership of GO Telecom at the company’s headquarters in Riyadh last week.

GO Telecom plays a significant role in Saudi Arabia’s digital transformation landscape, offering cloud, data center and management services to businesses. The company has expanded regionally through partnerships such as with Oman’s Data Park and by acquiring a majority stake in Ejad Tech, a Saudi IT solution provider.

While GO has a strong domestic presence in Pakistan’s petroleum sector, the planned AI hub appears to be its first major tech venture in the South Asian country, marking an expansion of its international footprint.

“The official launch of the [GO AI] Hub is planned for October 2025, with participation from senior government and industry leaders from both countries,” the IT ministry said in a statement shared with Arab News, adding that the initiative will promote joint development of digital solutions between Saudi Arabia and Pakistan.

During the meeting, future collaborations, including digital infrastructure expansion, data center development, and the establishment of a technical talent development center in Pakistan, also came under discussion, reflecting the shared vision to enhance regional digital connectivity and innovation.

“Through initiatives like GO AI Hub Pakistan, we aim to strengthen collaboration in emerging technologies, empower youth through digital skills, and accelerate our shared vision of a connected, knowledge-driven future,” the IT ministry’s statement said.

Arab News reached out to GO Telecom but could not get an immediate response on more details about the AI hub.

In an earlier statement shared by the Pakistani IT ministry, GO Telecommunications Group CEO Yahya bin Saleh Al-Mansour said the discussions with the Pakistani IT minister in Riyadh underscored the “strong potential” for cooperation between Saudi Arabia and Pakistan.

“The Group’s expansion into the Pakistani market aligns with our strategic vision of diversification and strengthening partnerships with friendly and brotherly nations,” he was quoted as saying.

The Pakistan Software Houses Association (P@SHA) welcomed the initiative, saying the AI hub would open new avenues for Pakistani startups in training, innovation and bilateral collaboration.

“This is an excellent initiative as it will provide Pakistani AI and telecommunications companies with access to the GO Telecom Group’s platform, enabling greater collaboration and growth opportunities,” P@SHA Chairman Sajjad Mustafa Syed told Arab News.

Pakistan and Saudi Arabia have long enjoyed close ties, but in recent years have sought to broaden their cooperation further. During Prime Minister Shehbaz Sharif’s visit to Riyadh in October 2024, they signed 34 memoranda of understanding worth $2.8 billion across multiple sectors.

Both countries are now planning to forge a partnership in the fields of artificial intelligence (AI) and cybersecurity, Pakistani state media reported last week.

Syed said the GO AI Hub would help increase the reach of Pakistani companies and startups to the Saudi market.

“Our companies have long lacked access to major international markets through a credible and established platform but with the GO AI Hub Pakistan, they will finally gain that opportunity as the Saudi telecom giant offers extensive reach in the Kingdom and region,” he added.


Pakistan PM orders accelerated privatization of power sector to tackle losses

Updated 15 December 2025
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Pakistan PM orders accelerated privatization of power sector to tackle losses

  • Tenders to be issued for privatization of three major electricity distribution firms, PMO says
  • Sharif says Pakistan to develop battery energy storage through public-private partnerships

ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.

Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain. 

Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery. 

“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.

The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.

In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.

Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.

State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.