AI-enabled public governance

By: Dr Shamaila Zareen

Pakistan has taken a proactive step in its AI agenda with the formulation of the National Artificial Intelligence Policy 2025. It seeks to create an inclusive and ethical AI environment and establish Pakistan as an AI hub for the region by 2035.

Pakistan has also initiated digitalization, e-governance, e-health, e-education, and public–private partnerships in the wake of Vision 2025 and the Digital Pakistan Policy 2018. Public services, healthcare, Taxation, Law Enforcement, Higher Education, Research, etc., are increasingly driven by the use of AI and are associated with programs like the National Center of Artificial Intelligence (NCAI) and the Sino-Pak Center for Artificial Intelligence (SPCAI).

Artificial Intelligence will be a game-changer in Pakistan's governance and economy, said Federal Minister Ahsan Iqbal. The government has ambitions to further develop AI-based digital infrastructure, with the development of Quantum Valley, National Innovation Fund, and evidence-based AI planning. By 2027, AI usage should be implemented in a core ministry task at least, with transparency, data privacy, fairness and ethical usage.

The government wants to use AI to boost the quality of education, health care, trade, research, and public administration, as part of its vision to propel the country to a $1 trillion economy by 2035. The federal government has suggested a big National AI Ecosystem Development Program with an estimated cost of Rs. 283 billion but received Just Rs. 1 Billion in New Budget.

Pakistan is taking incremental steps towards incorporating AI into public governance, as seen in various applications like identity verification, tax administration, healthcare, and public service delivery. AI systems at NADRA and the Federal Board of Revenue (FBR) have increased the efficiency of service, minimized fraud, and improved tax compliance.

AI-supported telemedicine is making healthcare more accessible in under-served regions. The National AI Policy 2025 outlines a detailed six pillar roadmap that emphasizes innovation, skill development, secure AI, infrastructure, sectoral transformation, and international cooperation, and sets ambitious targets like training one million individuals, setting up a National AI Fund, and establishing AI Centers of Excellence. Also, at the federal level, Pakistan is building an AI-powered digital governance platform to enhance coordination, transparency, accountability, and service delivery among ministries and the Prime Minister's Office.

Pakistan is far behind in the Government AI Readiness Index, 92nd position, whereas countries like the USA (1st), China (17th) and India (32nd) are ahead. Even with the strides made, Pakistan has some hurdles to overcome in the public sector to make AI more widely adopted. However, there are a number of challenges in the way of the mainstreaming of AI in the public sector in Pakistan. The issue of cybersecurity and data privacy is also significant, with the potential for a breach to halt the entire AI system.

Pakistan's public sector must not lag behind the global AI revolution. According to PwC Pakistan (2025), the cost of lack of AI adoption in the public sector is estimated to be up to $7 billion for Pakistan by 2030.

Pakistan as lagging in the global digital economy, impacting its competitiveness, its ability to attract investment, and its very capacity to govern effectively in an increasingly complex world. One survey conducted by UNDP Pakistan in 2024 revealed that only 12% of government officials had undergone any formal training in AI principles or applications relevant to public administration.

The country is moving towards digital transformation with the launch of projects under the ‘The Digital Nation Pakistan Act', including the National Digital AI, National Data Exchange Layer, and Open Data Ecosystem, and the central government, judiciary, and parliament are also taking steps in that direction, not just by using technology, but by making the relationship between the state and the citizen more transparent and effective.

The level of preparedness of Pakistan while it comes to governance with AI varies from one region to another. Punjab claims the most developed digital infrastructure and robust IT capacity, whereas the progress in revenue administration and in providing municipal services has been achieved in Sindh, which is however challenged by co-ordination issues. The government of Khyber Pakhtunkhwa has taken measures to digitize health, police and public service systems, with some connectivity issues in remote areas that are affecting the use of AI on a broader scale. Despite having less digital infrastructure, institutional capacity, and internet connectivity than urban areas of Pakistan, there is great potential in the use of AI in the field of disaster management, healthcare, education, tourism, and land administration systems in Balochistan, Gilgit-Baltistan, and Azad Jammu & Kashmir. There is little chance of a uniform national policy being effective without provincial variations.

Pakistan is at a crucial juncture. Governments are no longer just digitizing; they are advancing to intelligent governance around the world. The objective is not to replace civil servants but to empower them. The future is digital, and Pakistan must be ready to embrace it.

The author is a Staff Economist at the Pakistan Institute of Development Economics (PIDE). She can be reached at Email: [email protected]