Pakistan to form joint tech ventures with Saudi firms under new AI Hub initiative, minister says

Pakistan’s IT Minister Shaza Fatima Khawaja speaks during an interview with Arab News in Islamabad, on November 6, 2025. (AN Photo)
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Updated 07 November 2025
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Pakistan to form joint tech ventures with Saudi firms under new AI Hub initiative, minister says

  • Pakistan’s IT minister says AI Hub will connect Pakistani freelancers, firms to Saudi companies seeking digital services
  • Says Pakistan is bringing in more submarine cables for live connectivity, improving optic fiber penetration

ISLAMABAD: Pakistan and Saudi Arabia are moving to link digital skills training directly to jobs and joint tech ventures, rather than standalone training programs, under a new AI partnership being rolled out between the two countries, Pakistan’s IT Minister Shaza Fatima Khawaja said in an interview with Arab News.
 
The initiative centers on a planned “AI Hub,” a matchmaking platform that will connect Pakistani freelancers, software houses and technology firms with Saudi companies seeking digital services.
 
The move marks a shift in Pakistan’s workforce development policy, with the government now tying public funding for training programs to verified employment outcomes rather than the number of trainees.
 
“The Prime Minister has changed the KPIs for us — it is no longer how many children have been trained, but how many of those trained are actually employed,” Khawaja said. 

“Through the AI Hub, we are forming joint companies, supporting private sector firms and bringing investment — we are not talking about aid or loans, we are talking about value creation on both sides.”

Khawaja was referring to Saudi Arabia’s GO Telecom, which launched an artificial intelligence hub in Islamabad last month. GO Telecom is a key player in Saudi Arabia’s digital transformation offering cloud and data services.

The planned AI Hub marks its first major tech venture in Pakistan, broadening its international footprint beyond the petroleum sector.

“We have a lot to offer in terms of value. Our young, talented, quality human resource is also very cost competitive,” the minister said. 

“So, we’re, you know, leveraging the best parts of both our countries to bring about the best possible outcomes.”

Khawaja said that while Pakistan and Saudi Arabia have historically enjoyed fraternal ties, their agreement to launch an Economic Cooperation Framework last week will further strengthen these ties. 

Pakistan and Saudi Arabia last week agreed to launch an Economic Cooperation Framework to strengthen trade and investment ties. The decision was taken following Prime Minister Shehbaz Sharif’s meeting with Saudi Crown Prince Mohammed bin Salman on the sidelines of the Future Investment Initiative summit in Riyadh in October.

Both countries have agreed to deepen economic ties, focus on expanding cooperation in key sectors like energy, trade, investment, and infrastructure via the economic framework.

It will also facilitate joint projects, promote public-private collaboration and enhance trade and investment between Islamabad and Riyadh. 
 
“I think it’s absolutely unprecedented how Saudi has been forthcoming in terms of investment in the country,” Khawaja said. 

“We’re talking about adding value to the companies in Saudi Arabia through our human resource and bringing investment from Saudi Arabia for our companies in Pakistan.”
 
‘OVERALL INTERNET EXPERIENCE’

Pakistani citizens have frequently complained of slowed Internet services over the past couple of months. 

Citizens reported slow Internet speeds last month after major Internet providers, including Nayatel and the Pakistan Telecommunication Company Limited (PTCL), announced that emergency maintenance was being carried out on one of the country’s undersea cables.

Mobile Internet services were also suspended in Islamabad and Lahore during October following protests by the religio-political party Tehreek-e-Labbaik Pakistan (TLP), whose activists clashed repeatedly with police.

Khawaja said Pakistan’s government was taking several measures to rectify slow Internet speeds across the country. She cited “spectrum choking” as one of the main reasons for slow Internet speeds and the lack of spectrum in the country. 

“We’ve already vacated 600 megahertz of spectrum,” the minister said. “We’re looking to auction it early next year. That is something that is going to change the overall experience of Internet for citizens.”
She said Islamabad is also focusing on bringing in more submarine cables for live connectivity across the world, adding that the government is also undertaking efforts to increase optic fiber penetration across the country.


Pakistan finance chief says country leveraging AI to boost tax compliance, revenu

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Pakistan finance chief says country leveraging AI to boost tax compliance, revenu

  • Aurangzeb says AI-driven systems are cutting leakages, discretionary intervention in tax administration
  • He tells a national workshop the government must focus on applied AI, not technology for its own sake

KARACHI: Pakistan is deploying artificial intelligence-driven systems to strengthen tax compliance and enforcement as part of a broader reform push, Finance Minister Muhammad Aurangzeb said on Tuesday, adding the country must focus on applied AI solutions.

He was speaking during a panel discussion at the National Artificial Intelligence Workshop in the capital, as Pakistan undertakes sweeping fiscal and structural reforms under a $7 billion International Monetary Fund loan program aimed at stabilizing the economy and boosting revenue collection.

The government has pledged to widen the tax base, curb leakages and digitize administration, with technology playing a central role in its tax transformation agenda.

“AI-enabled systems are playing an increasingly important role in strengthening compliance, enforcement, and decision-making,” Aurangzeb said, according to a statement released by the finance division.

“The Government’s ongoing tax transformation, anchored in reforms to people, processes, and technology, is leveraging AI-led CRM [Customer Relationship Management] systems, AI-led production monitoring, risk-based compliance tools, and faceless customer processes to enhance transparency, reduce leakages, and improve revenue outcomes,” he added.

The finance minister said the focus for a country like Pakistan must remain on applied AI solutions that deliver measurable gains in efficiency, transparency and productivity, rather than on adopting technology for its own sake.

Reducing discretionary human intervention through technology was central to curbing inefficiencies and corruption, he said, adding that AI-led systems had generated tangible fiscal gains that would not have been achievable through manual processes alone.

Aurangzeb said investing in human capital and skills development was essential to enable Pakistan’s youth to participate in higher-value segments of the global technology ecosystem, noting that technologies such as blockchain and data analytics could support productivity-led growth.

He maintained artificial intelligence offered opportunities in revenue mobilization, public service delivery and climate and population management, adding that realizing those gains would require clear policy direction, institutional readiness and a coordinated, whole-of-government approach.