Pakistan's digital economy set for growth, AI to contribute $10b to $20b by 2030

Pakistan’s digital economy is on track for significant expansion, with projections estimating a contribution of $60 billion by 2030. 

A notable portion of this growth, around $10-$20 billion, is expected to come from advancements in artificial intelligence (AI), according to Dr Sohail Munir, advisor to the Saudi Data and AI Authority (SDAIA).

Speaking at the AI Convergence Summit Pakistan on Wednesday, Dr Munir highlighted that AI could account for up to 10% of Pakistan’s GDP by 2030, with one-third of this anticipated growth attributed to AI. 

His remarks were based on a PwC report, which suggests that AI could have an overall impact of 5.6% on the GDP of countries like Pakistan by the end of the decade. Globally, AI is projected to contribute up to $15.7 trillion to the economy, surpassing the combined GDP of China and India.

Dr Munir further underscored the transformative effects of AI and digitisation on Pakistan’s economy, projecting a GDP of $600 billion by 2030, largely driven by these advancements. The development of Digital Public Infrastructure (DPI) is expected to be key to this growth.

Ahmed Hashim, CEO of Cygnis—an IT company involved in Pakistan's growing tech export market—shared that AI is already making its mark in the local IT sector, noting that 30% of their IT exports are AI-based.

He also stressed the importance of positioning Pakistan’s tech industry at the forefront of the AI revolution, which is set to take off in the next few years.

Arsalan Akhtar, president and co-founder of Cygnis, acknowledged that local demand for AI services is still low but pointed to growing international pressure driving Pakistan’s top IT firms to expand their AI-based offerings, with 20%-30% of their exports now AI-driven.

Habibullah Khan, CEO of Penumbra, highlighted a critical gap in Pakistan’s AI industry, noting that many local firms focus more on offering low-cost services rather than addressing specific business challenges. 

In contrast, he pointed out, Indian firms engage directly with clients to develop AI solutions tailored to their needs, such as addressing non-performing loans or simplifying onboarding processes.

Khan argued that this proactive, solution-oriented approach allows Indian firms to attract more customers and provides a model for Pakistani companies to follow.

The summit concluded with a call for greater emphasis on AI’s potential to solve business problems.