Bridging the gap for digital future

Although Pakistan has rapidly growing digital population, its research spending and industrial automation remain limit

KARACHI:

The global economy is undergoing a seismic technological shift. Robotics, automation, and AI are no longer futuristic ideas, they are now mainstream drivers of productivity, competitiveness, and innovation.

According to the International Federation of Robotics (IFR), the industries worldwide deployed over 553,000 new industrial robots in 2023, marking a historic peak in automation demand. Meanwhile, global AI investment is projected to exceed $300 billion by 2026, as estimated by the International Data Corporation (IDC). The world is accelerating rapidly, but Pakistan risks being left behind unless decisive and strategic action is taken.

Pakistan's current standing in global technological competitiveness reflects this urgent need. The World Intellectual Property Organisation's Global Innovation Index 2024 ranked Pakistan 88 out of 132 countries, trailing significantly behind regional peers such as India (40), China (12), and even Iran (62).

Although Pakistan has a young and rapidly growing digital population, its innovation input including research spending, patenting, STEM education quality, and industrial automation remains limited.

One of the clearest indicators of Pakistan's lag is its extremely low adoption of industrial robotics. While China deployed more than 290,000 robots in 2023, India installed over 4,000, and Southeast Asian economies like Vietnam and Thailand each installed several thousand per year, Pakistan's installations remain negligible estimated in the low hundreds, primarily within automotive assembly and select textile units. This places Pakistan far below global benchmarks for robotics penetration per 10,000 manufacturing workers, a critical indicator used by the IFR.

AI development, too, is growing slowly despite considerable potential. Estimates suggest Pakistan's AI industry is currently valued at around $100-120 million, a fraction of India's AI ecosystem, which already exceeds $7.8 billion in valuation.

Global tech corporations and venture investors have poured tens of billions of dollars into the research and deployment of AI models, automation platforms, and robotics labs. Pakistan, however, lacks a cohesive national AI strategy, consistent funding pipelines, or large-scale industrial automation programmes that could unlock similar growth.

Pakistan has strong foundations that can be leveraged. The country produces more than 35,000 IT and engineering graduates annually, according to the Higher Education Commission (HEC). Freelancers and digital workers generate over $400 million in annual export earnings, reflecting global demand for Pakistani technical talent. Moreover, private-sector initiatives from robotics startups in Karachi and Lahore to automation efforts in large industrial groups demonstrate that capacity exists when given the right incentives and resources.

Pakistan must pivot from scattered initiatives to a coordinated national strategy. Three priority areas stand out. First, the country must invest in industrial automation at scale. The manufacturing sector, which accounts for nearly 12-13% of GDP, suffers from low productivity, energy inefficiencies, and technology gaps.

Robotics adoption in textiles, food processing, pharmaceuticals, and logistics can significantly increase competitiveness in export markets. Government-backed tax incentives for robotics equipment, low-interest automation loans, and partnerships with countries like China, South Korea, and Japan could accelerate industrial modernisation.

Second, research and development (R&D) must be strengthened. Pakistan's gross expenditure on R&D stands at less than 0.3% of GDP, far below the global average of 2.3%, and dramatically lower than innovation leaders like South Korea (4.9%) or China (2.4%).

Without substantial investment in university labs, applied AI research centres, and industry-academia partnerships, Pakistan cannot produce the intellectual property or advanced technical solutions required for robotics and AI advancement. Establishing National Robotics Centres, funded jointly by the government and private industry, would be a game-changing step.

Third, talent development and regulation should be prioritised. Pakistan urgently needs specialised curricula in AI engineering, machine learning, robotics design, control systems, and industrial automation. Short courses and certifications are not enough. Universities should embed practical robotics labs and co-op industry training into degree programmes.

Simultaneously, Pakistan must design a forward-looking regulatory framework for AI ethics, data governance, cybersecurity, and safe deployment. Without clear guardrails, industries will hesitate to invest.

The government's recent efforts such as the Special Investment Facilitation Council (SIFC) targeting technology investment, and the Ministry of IT's proposed National AI Strategy indicate growing recognition of the need for reform. But policy action has been slow, funding remains thin, and coordination across ministries is limited. If Pakistan wants to harness global shifts in automation and AI, it must treat technology as a central pillar of economic policy, not a peripheral sector.

The World Economic Forum estimates that AI and automation could generate $15.7 trillion in global economic value by 2030. Countries that integrate robotics into manufacturing and AI into services will gain a decisive productivity advantage.

Pakistan's export industries, already struggling with high input costs and low efficiency, risk losing global market share if they fail to modernise. Conversely, with the right policies, Pakistan could unlock a new wave of technology-driven growth, create high-value jobs, and transform its industrial base.

The "robotics and AI race" is not about machines replacing people; it is about countries equipping their people with the tools needed to compete in a world powered by automation. Pakistan has the youth, the talent, and the strategic geographic position to participate meaningfully in this global transformation. What it lacks is coordinated investment, regulatory clarity, and long-term technological vision.

The message for Pakistan's policymakers and business leaders is clear: the world is not waiting. Robotics and AI are reshaping global trade, industry, and innovation at unprecedented speed. Pakistan must act now decisively and strategically or risk being left on the sidelines of the new digital economy.

The writer is a member of PEC and has a masters in Engineering