Pakistan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in pakistan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Strategic Technologies
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Overview

Pakistan is pursuing a strategic agenda to integrate critical and emerging technologies into its national development framework, which aims for a significant socio-economic advancement and enhanced national security. Driven by new policy initiatives, such as the Government’s Vision 2025 and the recent Digital Nation Pakistan Act 2025, the country is trying to foster innovation. Notable progress has been observed in the Artificial Intelligence (AI) sub-sector with the establishment of national development centers and the formulation of a draft AI policy. Cybersecurity infrastructure is being fortified through a dedicated national policy and the implementation of advanced mechanisms.  In this regard, the federal government has constituted a National Task Force and established a Minister of State for Crypto Currency and AI to oversee its implementation by relevant ministries and departments.  The members of the National Task Force comprise experts from the government, academia, and the private sector. Similarly, in 2025 the government established the National Computer Emergency Response Team (NCERT) to safeguard the nation from external threats to local public and private sector digital infrastructure. In the case of Blockchain technology, Pakistan has issued its first computing license, signaling an enhanced interest in decentralized applications. Pakistani government institutions, private companies, entrepreneurs, and universities are eager to work with the United States in the digital sector.

Strategic Vision for Technology

The Government of Pakistan recognizes the importance of the rapidly evolving digital age and technological prowess as a key enabler for economic growth. This understanding underpins a series of policy frameworks designed to accelerate socio-economic development and bolster national security through innovation.  

The National Technology Council (NTC), a body under the auspices of the Higher Education Commission (HEC), plays a pivotal role in this vision. The NTC is particularly focused on reshaping engineering technology education, empowering professionals with knowledge and practical skills. Another significant long-term objective for the NTC is to achieve signatory status under the Sydney Accord, an internationally recognized framework for accrediting engineering technology programs. Complementing these efforts, the Ministry of Science and Technology (MoST) serves as the national focal point for planning and coordinating scientific and technological programs aligned with the national CET agenda. Its primary goal is to cultivate a strong and sustainable research base that supports socio-economic development. MoST actively promotes technological advancements in industrial development, renewable energy, and rural upliftment to enhance growth and improve living standards across the country.

The Digital Pakistan Policy, introduced in 2018, envisioned the Information and Communication Technology (ICT) sector as a strategic enabler for an accelerated digitization ecosystem, aiming to expand the knowledge-based economy and spur socio-economic growth. This policy laid the foundation for a holistic digital ecosystem, incorporating advanced concepts for the rapid delivery of next-generation digital services and applications. Building on this, the Digital Nation Pakistan Act, enacted in January 2025, represents a significant legislative milestone. It seeks to transform Pakistan into a “digital nation” by enabling a digital society, digital economy, and digital governance.

Leading Sub-sectors

Pakistan is prioritizing several critical and emerging technologies, recognizing their transformative potential across various sectors, from national security to socio-economic development.

Artificial Intelligence (AI)

The Government of Pakistan recognizes AI as a pivotal technology capable of reshaping economic development, academic progression, and social uplift. The country views AI as a versatile tool with dual-use potential, extending from military applications to critical civilian services. In the defense sector, AI is being integrated into war readiness and national security, offering a comparatively inexpensive means to address capacity gaps through applications like self-governing surveillance drones and predictive cyber-protection systems. Beyond defense, AI’s utility in governance, disaster relief, and public health is increasingly evident. For instance, rudimentary AI technologies were employed during the COVID-19 pandemic to oversee lockdown procedures and forecast disease hotspots. More broadly, AI-powered diagnostic tools are enhancing rural healthcare access, to prepare for, and respond to, natural disasters, and smart traffic management systems are being implemented in major cities like Karachi and Lahore.  

Pakistan’s commitment to AI development is underscored by several national initiatives. The National Centre of Artificial Intelligence (NCAI), established by the Higher Education Commission (HEC) in 2018, is a key institution dedicated to promoting domestic AI solutions. NCAI functions as a central hub for innovation, scientific research, knowledge transfer, and training in AI and related fields, housing specialized facilities such as the Smart City Lab and Neuro Computation Lab. By early 2025, the center had already deployed 221 AI solutions, benefitting healthcare, media monitoring, and transportation applications. Further emphasizing the strategic importance of AI, Pakistan established its first Artificial Intelligence and Computing (AIC) Directorate, signaling the country’s leadership’s intent to integrate AI into national security frameworks.  

In May 2023, the Ministry of IT and Telecom introduced a Draft National AI Policy (which is still in draft form), which aims to transform Pakistan into a knowledge-based economy by fostering responsible AI adoption. This policy emphasizes ethical AI use, encourages investment in research and development (R&D) infrastructure, addresses potential job displacement, and seeks to leverage AI for broader economic growth. Specific targets outlined for achievement by 2028 include widespread public awareness of AI, development of skilled human capital, upskilling the existing workforce, integration of AI into education, establishment of a National AI Fund, and creation of dedicated Centers of Excellence in AI and Allied Technologies. The policy also includes provisions for empowering marginalized women and people with disabilities through specialized AI training programs.  

Cybersecurity

Pakistan’s market for cybersecurity equipment and services is at a developing stage and needs and would benefit from foreign investment and technical expertise. With more than 100 million internet subscribers in both the public and private sectors, the local market offers substantial business opportunities for U.S. companies, as there are  few local and foreign companies with expertise in offering reliable service packages for domestic cybersecurity requirements. Like other markets, the cybersecurity threats in Pakistan include hacking, identity theft, cyber-bullying, cyberstalking, spoofing, financial fraud, digital piracy, viruses and worms, malicious software, IPR violations, money laundering, denial of service attacks, electronic terrorism, vandalism, and pornography. The local public-sector institutions and private businesses are often explicitly vulnerable to such threats. Most local businesses prefer to operate in partnership with foreign firms in this sector. This partnership arrangement includes license rights for development and/or agent/distribution agreements, which helps foreign companies to get quick traction and deeper penetration into local business channels. By far, U.S. companies dominate the local market, followed by British and Chinese firms.

With an uptick in the growth of the information technology sector and its increasing penetration in this market, the Government of Pakistan has made concerted efforts to develop a regulatory framework. The federal cabinet approved the National Cybersecurity Policy in 2021, which establishes a primary platform for developing strategies and establishing regulatory procedures and penalties. In addition, under this policy, a cybersecurity governance policy committee spearheads the implementation of strategies, inter-governmental coordination, awareness campaigns, and gauging industry feedback. According to local industry experts, the objectives of this policy are to address the dynamic nature of cybersecurity challenges and risks faced by the country. Some of the key aspects and features of this policy are as follows:

  • Develop and establish a broad governance framework, which addresses the importance of critical information systems infrastructure.
  • Promote data governance, data protection, and online privacy.
  • Develop systems to enable broad-scale cybersecurity awareness.
  • Establish an information assurance framework and emphasize national and global cooperation.
  • Capacity building of key local stakeholders – public institutions, private sector, and academia.

Blockchain Technology

Pakistan is positioning itself as an emerging hub for blockchain innovation in South Asia, with rapid investment growth projected for the coming years. A significant stride in this direction was the government’s issuance of its first blockchain-based computing license to a local data center in 2025. This initiative integrates blockchain with Artificial Intelligence and Big Data technologies, marking a pivotal step towards advancing the country’s digital infrastructure. This initiative is aimed at strengthening the digital ecosystem and promoting economic diversification while attracting investment and generating foreign exchange.  

Quantum Computing: Pakistan is making notable advancements in quantum computing. The Centre of Excellence for Technology Quantum and AI (CETQAP) achieved a significant milestone by developing the nation’s first quantum computer in 2024. This accomplishment advances Pakistan’s quantum research and contributes to building national capacity in this highly specialized field. The government launched the “Quantum Valley Initiative” in June 2025. This initiative is envisioned as a cornerstone for building an inclusive and innovation-driven economy, specifically targeting frontier technologies such as quantum computing, artificial intelligence, and advanced cybersecurity. The Quantum Valley Pakistan project will host advanced science parks specializing in diverse fields like agri-tech, biotechnology, materials science, and minerals, fostering an ecosystem where academia, industry, and government collaborate. The strategic framework for this initiative has been co-developed with St. John’s Innovation Centre at the University of Cambridge (UK), a globally recognized hub for tech enterprise.  

Genetic Engineering and Synthetic Biology: Research in these fields is being conducted at institutions like the Centre of Agricultural Biochemistry and Biotechnology (CABB) at the University of Agriculture, Faisalabad. CABB’s research domains include synthetic biology, chloroplast molecular biotechnology, transgenic development, and genetic engineering, indicating a focus on agricultural and biotechnological advancements.  

Government Policies and Regulatory Frameworks

Pakistan’s government bodies are actively engaged in shaping the technological landscape through various policies and regulatory frameworks. The Ministry of Science and Technology (MoST) serves as the national focal point for science and technology, responsible for planning and coordinating programs aligned with the national agenda since 1972. Similarly, the Ministry of Information Technology and Telecommunication (MoITT) plays a lead role, administering the Ignite National Technology Fund and spearheading the ‘Digital Pakistan’ vision. In 2023, the MoITT implemented over 120 modernizing policy reforms, including tax incentives for tech firms and streamlining bureaucratic processes for exports, which contributed to a 27% yearly rise in the tech market in 2024.  

The Higher Education Commission (HEC) is instrumental in reforming higher education to support technological advancement. HEC focuses on improving financial incentives, increasing university enrollment and PhD graduates, enhancing foreign scholarships, and fostering research collaborations. It has also upgraded scientific laboratories, rehabilitated educational facilities, and developed a regional digital library, providing free high-speed internet access to scientific literature. HEC’s commitment extends to digitizing higher education, exemplified by the establishment of advanced datacenters (Astrolabes) in Lahore and Karachi. The National Technology Council (NTC)regulates technology-related programs to ensure quality education comparable to international standards.  

A significant legislative development is the Digital Nation Pakistan Act, passed in January 2025. This Act is central to Pakistan’s digital transformation, providing a legal framework for incorporating digital technologies into governance, the economy, and society. It aims to facilitate seamless access to government services, such as land records and ID cards, via mobile devices, thereby reducing bureaucratic hurdles. The Act is also designed to ease business processes for entrepreneurs, with projections to improve Pakistan’s Ease of Doing Business ranking by 20 spots within two years. The Digital Nation Pakistan Act establishes three potentially overlapping regulatory bodies: the National Digital Commission, tasked with approving the National Digital Masterplan and ensuring coordination; the Pakistan Digital Authority (PDA); and the Digital Nation Fund. The Digital Nation Fund, supported by government budget and international grants. The Act is expected to result in a steady stream of government and private sector investment into cybersecurity, digital infrastructure, and innovation hubs, including a significant allocation of $50 million to expand broadband access to 15 million rural users by 2026.  

Strategic Opportunities for Growth and Innovation

  • Large and Youthful Population: With over 60 percent of its population under 30, Pakistan possesses a substantial talent pool eager to innovate and contribute to the digital economy.
  • Digital Transformation Momentum: Increased internet penetration, widespread smartphone usage, and the upcoming rollout of 5G networks are creating new opportunities for online businesses and digital services.  
  • High-Growth Sectors: Significant opportunities exist in sectors like Fintech, driven by a large unbanked population; HealthTech, with growing demand for telemedicine and digital health records; EdTech, fueled by the shift to online learning; AgriTech, focused on improving farming practices; and Renewable Energy Tech, with numerous solar power projects underway.  
  • Competitive Software Exports: Pakistan’s IT sector is a major contributor to export growth, with software exports projected to surpass $5 billion in 2025. The country’s top-tier software developer force ranked third worldwide in 2024 by Coursera, a leading U.S. online course provider, highlighting Pakistan’s attractiveness as a destination for multinationals seeking cost-effective software innovation.  
  • Government Support: Initiatives include zero income tax on IT exports, reduced sales tax on IT products and services, and long-term financing. The Digital Nation Fund provides a steady stream of investment into key digital infrastructure and innovation hubs.  
  • International Partnerships: Strategic alliances with countries like Saudi Arabia, China, and Turkey, as well as global tech giants like Google, which are supported by the government, offer valuable avenues for mutual innovation, investment, and technology transfer.
  • Data Centers: The shift toward AI, cloud computing, and high-performance technologies offers opportunities for a diversified data center ecosystem in Pakistan. Comprising hyperscale, regional, and edge facilities, this infrastructure will support large enterprises, government agencies, startups, SMEs, and local IT firms with faster, secure, and localized data processing.  

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