Pakistan’s biggest challenge in the global artificial intelligence race is not infrastructure or technology, but a widening talent gap, according to a new policy proposal submitted ahead of the FY2026-27 budget.

Private-sector AI consultancy Densight Labs estimates that fewer than 10% of Pakistan’s active IT professionals have applied AI skills. This compares with around 31% in India, 42% in Malaysia, and 55% in the United Arab Emirates.

Despite producing over 75,000 IT graduates annually, the report argues that outdated academic curricula and weak industry collaboration are limiting the development of job-ready AI expertise, particularly for high-value roles.

The study suggests that bridging Pakistan’s digital skills gap could unlock up to Rs. 2.8 trillion in additional annual GDP by 2030.

To tackle the issue, it proposes a Rs. 5 billion National Applied AI Skilling Fund to train 100,000 workers in both foundational and advanced AI programs.