PCJCCI backs CPEC 2.0, proposed $1 bn AI fund for digital economy

ISLAMABAD: The Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) has voiced support for the government’s proposed $1 billion artificial intelligence fund and said its combination with CPEC 2.0 could help reshape Pakistan’s economic trajectory by strengthening the digital economy.

According to the chamber, the initiative comes at a critical time as Pakistan has a young population, with around 63% of citizens falling in the youth bracket. PCJCCI President Nazir Hussain said the country’s demographic profile could become a major advantage if it is directed towards technology-led growth and skills development.

‘The AI fund represents a timely and strategic initiative that can strengthen governance frameworks, promote innovation and unlock vast opportunities for Pakistan’s youth,’ said Nazir Hussain, President PCJCCI. ‘Integrating advanced technologies into national development planning is essential for achieving sustainable and inclusive economic growth.’

PCJCCI office-bearers said the proposed fund envisages the introduction of AI education in federally administered schools, 1,000 fully funded PhD scholarships by 2030, and training for one million non-IT professionals in AI-related skills. They said the plan is aimed at preparing the existing workforce for technological change while building a broader national ecosystem around emerging technologies.

The chamber said training workers outside the IT sector could raise productivity, improve livelihoods and help conventional industries adjust to changing technological requirements. It described the programme as a foundation for a countrywide technology framework.

Digital economy potential

The report cited International Monetary Fund estimates that digital economies in developing markets can expand at a pace two to three times faster than traditional economies. Pakistan currently accounts for less than 1% of global AI research output, indicating significant room for growth if investment is accompanied by stronger institutional capacity.

A Lahore-based technology policy analyst said Pakistan’s advantage lies not only in its youthful population but also in the rapid expansion of mobile internet usage, which crossed 200 million users in early 2026.

‘AI adoption in Pakistan will only deliver results if we build local datasets, train local talent and solve local problems, not simply import solutions designed for other markets,’ the analyst said.

Link with CPEC 2.0

PCJCCI also linked the proposed AI initiative with the broader CPEC 2.0 framework, saying it aligns with the government’s Uraan Pakistan programme. According to the chamber, that programme focuses on export growth, affordable energy, operational efficiency and environmental sustainability.

The chamber said the convergence of these policy directions could improve Pakistan’s economic resilience and strengthen its competitiveness in international markets.

China’s position as a major investor in artificial intelligence makes it a natural partner for technology transfer, joint research and infrastructure development under the China-Pakistan Economic Corridor. China is expected to inject $125 billion into the AI sector in 2026.

PCJCCI said it intends to help advance this dimension through public-private partnerships aimed at sustainable economic development.