Pakistan could generate as much as Rs. 9.7 trillion (about $34.9 billion) in economic value by 2030 through accelerated digital transformation, according to a new policy proposal submitted ahead of the federal budget.
The proposal argues that the bulk of this potential lies in SME-heavy sectors such as manufacturing, retail, healthcare, and logistics. However, it warns that the absence of structured technology adoption mechanisms is preventing this value from being realized.
To address the gap, it recommends establishing a Rs. 3 billion National AI Adoption Fund structured as a matching-grant programme for small and medium-sized enterprises.
Under the plan, eligible SMEs—registered, tax-compliant, and employing fewer than 500 people—would receive funding covering up to 40% of verified AI implementation costs, capped at Rs. 5 million per company. All deployments would need to be executed through PSEB-registered AI firms or certified implementation partners.
The proposal defines eligible expenses narrowly, including AI software, integration services, approved training, and hardware directly linked to deployment. It also requires third-party audit certification and periodic spot checks to prevent misuse of funds.
Each participating firm would submit baseline performance metrics before deployment and a 12-month follow-up report tracking outcomes such as productivity gains, cost reductions, revenue growth, error reduction, or improved service response times, verified by independent evaluators.
Sector allocations would prioritise manufacturing (30%), healthcare (20%), financial services (20%), agriculture technology (15%), and retail and logistics (15%).
Governance would be handled by an independent technical committee including representatives from the Ministry of IT and Telecommunication, State Bank of Pakistan, P@SHA, and industry experts, with conflict-of-interest safeguards for all stakeholders.
The initiative is expected to support around 600 SME AI deployments in its initial phase, aiming to create measurable economic impact while simultaneously stimulating demand for AI talent and services across the country.
