Pakistan digital authority partners with Swiss-based group on sovereign cloud, AI systems

Representatives from Pakistan Digital Authority (front-left) and DFINITY (front-right) sign an MoU to advance sovereign AI‑native digital infrastructure in Pakistan in a ceremony held in Islamabad, according to a statement released by Pakistan Digital Authority (PDA) on February 10, 2026. (PDA)
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Updated 10 February 2026
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Pakistan digital authority partners with Swiss-based group on sovereign cloud, AI systems

  • Deal aims to keep sensitive data in-country as Pakistan seeks to reduce reliance on foreign cloud providers
  • Partnership includes national messaging app, AI platform access and plans for a local DFINITY presence

ISLAMABAD: Pakistan’s digital regulator has signed a partnership with Swiss-based non-profit DFINITY Foundation to develop sovereign cloud infrastructure and AI-native software systems, according to an official statement issued on Tuesday.

The agreement between the Pakistan Digital Authority, the government body overseeing the country’s digital transformation, and DFINITY seeks to ensure sensitive public data remains within the country while enabling tamper-resistant software, national-scale digital services and artificial intelligence applications without reliance on foreign cloud providers.

As part of the collaboration, DFINITY will support the creation of a Pakistan-specific subnet on its Internet Computer Platform, a sovereign cloud network designed to host secure government applications and AI-powered systems.

The partnership also includes plans to pilot a national messaging application, expand access to DFINITY’s AI software platform Caffeine, and roll out capacity-building initiatives across government, education and entrepreneurship.

“This partnership marks an important step in Pakistan’s digital evolution,” said Dr. Sohail Munir, chairperson of the Pakistan Digital Authority, in the statement issued by the authority.

“By investing in sovereign cloud infrastructure and modern AI‑ready platforms, we are strengthening national resilience, supporting innovation, and creating new opportunities for our public institutions, students, and entrepreneurs,” he continued.

DFINITY, which describes itself as a research organization, said the agreement would allow Pakistan to develop and operate cloud and AI services under its own control.

The foundation has also committed to establishing a local presence in Pakistan and providing 1,500 licenses for its Caffeine platform, which enables users to build and deploy applications using natural language commands.

“Pakistan is taking a forward‑looking approach to digital infrastructure,” said Dominic Williams, founder and chief scientist at the organization.

“By establishing a Pakistan Subnet and investing in sovereign, tamper‑proof systems, the country is laying the groundwork for software and AI applications that are secure, verifiable, and built to serve national priorities,” he added.

The Pakistan Digital Authority was established under the Digital Nation Pakistan Act 2025 and is mandated to oversee digital policy, data and AI governance and national digital infrastructure across federal and provincial institutions.

DFINITY, founded in 2016, operates from Zurich and San Francisco and focuses on distributed systems, cryptography and advanced computing.
 


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.