I have spent more than a decade developing AI-native systems, scaling teams, and pushing our company to compete with the top players in Silicon Valley, since becoming the CTO of ibex. However, I can confidently say that 2025 will be the biggest change ever for Pakistan’s tech sector. 

The National AI Policy 2025 is a policy that has been formalised by the government on paper but it is more than just that. It is the first serious initiative to make Pakistan an AI-driven and technologically advanced economy. A country that can export high-value products, innovate without any help, and provide digital services that meet global standards. 

I have had the opportunity to dig into AI adoption, engineering limitations, regulatory gaps, and global client expectations every day. So, I would like to simplify what this policy really means for CTOs, founders, and engineering leaders, and how we can tactically take advantage of its incentives for tech export growth. 

This is an AI Strategy guide by me, Jamshaid Mustafa that is grounded in real-world situations, opportunities, and the technical depth of the policy.

The Importance of This Policy and the Reason Why It Is a Concern Now 

We are experiencing the fastest technological change ever in human history. The AI revolution is no longer just a concept, a possible hypothesis for everyone to wonder about. It is a reality and its impact is already being felt in terms of money. 

Worldwide AI investments (2024–25) reached over $252.3 billion. The companies that will rule the next decade the earliest are the ones which have: 

• Supercharged computers 
• Machine-made decisions 
• AI-first processes 
• Data-embedded product design 

Apart from the technology breakthrough, Pakistan has a strategic requirement. But if you’ve been following along for a while you know that I make this very clear. If we do not adopt artificial intelligence right away, we will not be in a position to export technology tomorrow. I’ve talked about it here previously.

Countries like India, Vietnam, Malaysia, the UAE, and Bangladesh are making rapid strides with: 

• Dedicated AI Regulations 
• AI export incentives 
• Compute subsidies 
• AI-talented workforce programs 
• Government-funded R&D. 

Pakistan simply could not afford to hang around. 

The National AI Policy 2025, which is closely connected to Pakistan’s AI Policy 2026 roadmap, marks our participation in this global race.

What the Policy Actually Aims to Do  

The policy isn’t just about the six pillars; it has a deeper technological ambition that is apparent: 

1. Activate the country from passive tech absorption active AI engineering 

This is the overarching strategic transition. Pakistan is not presenting itself as a BPO market that simply offers cheap labor; we are, rather, an AI-native, innovation-based tech exporter pushing to the forefront. 

2. Create sovereign AI capacity: hardware, cloud, data management, and R&D 

In the past, the policy always overlooked the basic issues that Pakistan suffers from. 

• No unified national compute grid 
• Poor access to HPC 
• Datasets are not properly linked 
• Very little research within the country 
• No AI-training environments of a uniformly high standard 

But, the scenario is going to be different; 

• National AI Data repositories will be there 
• GPU-based compute cloud for the whole country will be built 
• AI-first Centers of Excellence will be there that will share knowledge 
• Standardized platforms for AI model training will be set up 

If the Government AI Policy is correctly implemented, this will cut the entry barrier for AI product companies directly. It will also allow us to generate AI solutions at a cost one-tenth of the present. 

3. Make Pakistan an AI Tech Export Hub 

To the minds of the leaders, the most significant point in the policy for me is this one. 

The policy has it all for: 

• AI-Tech Export Incentives for Pakistan 
• AI product licensing support for indigenous companies 
• Frictionless cross-border AI services 
• International R&D partnerships 
• AI freelancing and outsourcing frameworks set up at the beginning 

This is a strategic positioning with the global markets that require: 

• Predictive AI models 
• Automation of enterprise workflow 
• AI customer experience solutions 
• AI analytics 
• Cloud migration powered by AI 

It is not only enough for Pakistan to provide staffed services. The country needs to jump start its AI movement and sell these products as well.

What You Need to Know About The Policy’s Core Components

The following is an elucidation of how the policy correlates with engineering and product outcomes in actual life.

1. Building a Talent Machine: AI Knowledge and Preparedness

The million AI specialist training by the year 2030 is not simply a figure, it is the plan to create a workforce that is aware of and can work with AI.

It is a common sight across different industries that: 

• Access to senior AI engineers is limited 
• Applied ML talent is scarce 
• Upgrading skills is very expensive 
• There are no AI researchers with expertise in specific fields 

The above-mentioned problems will be solved to a great extent by: 

• 200,000 AI trainees every year
• 3,000 postgraduate AI scholarships
• 10,000 AI instructors trained
• Women-first AI leadership programs
• Disability-accessible AI learning modules

This is the largest human-capital strategy Pakistan has ever tried.

2. Data Standardization & Accessibility

A tech industry person would surely agree that datasets determine the quality of AI systems. Currently, Pakistan’s data is: 

• Hidden in, Ministry-department,
• Unavailable due to outdated formats,
• Not usable with other systems,
• Stored on paper as archives.

The policy will set up: 

• Data standards at the national level,
• Rules for managing metadata,
• Datasets for training of models to be of the highest quality,
• Sandbox environments,
• Frameworks for access to data via APIs. 

Calling it essential for product development situations especially in export markets where customers are asking for the auditable, bias-tested datasets.

Computational Infrastructure: Powering Artificial Intelligence at Scale

The policy details a plan that includes:

• National HPC Grid 
• GPU clusters 
• Unified AI cloud for academia and industry 
• Commercial-grade compute nodes for startups 

As a tech industry leader for the last 20 years, I can’t emphasize enough the significance of this move. 

Pakistani companies today are burning huge amounts of money on: 

• AWS 
• Azure 
• Google Cloud 
• Third-party GPUs 

Local infrastructure gives a cost advantage and increases the export competitiveness. 

4. Governance & Ethical AI: Necessity for Global Compliance 

The global clients particularly from the US, UK, and EU are demanding: 

• Explainable AI 
• Transparent algorithms 
• Data protection compliance 
• Audit trails 
• Bias assessments 

Among the introduced policies are: 

• AI ethics board 
• Algorithmic fairness standards 
• Human-in-the-loop oversight 
• Mandatory transparency for high-risk AI 
• Rights of appeal against automated decisions 

The reason is that trust is needed when exporting to regulated markets.

5. Global Partnerships 

• The policy makes it easier for: 
• International AI research clusters 
• Tech diplomacy 
• Foreign direct investment 
• Cross-border data sharing (regulated) 
• Joint development of AI platforms 

All these directly enable Pakistani tech firms to: 

• Create global AI products 
• Sell enterprise AI tools abroad 
• Get support from multinational investors 
• Bring local research to market 

This is the place for a CTO-level strategy to be implemented. 

Where the Policy Falls Short And What You Should Watch 

No policy is perfect. This one is economically ambitious but politically fragile. 

These are the gaps I believe company leaders must prepare for: 

1. Weak legal enforcement 

AI governance needs statutory authority, not soft commitments. 

2. Data privacy law still pending 

Pakistan needs a GDPR-equivalent law for global credibility. 

3. Infrastructure realism issues 

HPC and cloud grids require massive electricity and cooling capacity. 

4. Implementation timelines are overly optimistic 

The 2025–2027 targets are likely to slip. 

As a leader myself, my approach is always the same: Prepare for the opportunity, but engineer around the risks.

How Company Leaders Can Use This Policy To Their Advantage For Tech Export Growth 

Below is the strategic roadmap that I will recommend based on my internal planning and experience in leading AI transformations. 

1. Quickly Build AI-Native Products: Incentives Are Very High Right Now 

The AI-Native Development Incentives component in the policy gives early movers: 

• Access to the National AI Fund 
• R&D cost offsets 
• Preferential procurement 
• Regulatory sandbox early approval 

If you ever had the intention to create: 

• Predictive CX platforms 
• AI GovTech tools 
• AI compliance engines 
• AI-powered healthcare models 
• Fintech risk engines 

Then this is the time. 

2. Spread Out Over Pakistan Tech Hubs AI Ecosystem 

Policy favours new AI hubs in: 

• Karachi 
• Lahore 
• Islamabad 
• Peshawar 
• Quetta 
• Faisalabad 

These hubs will be: 

• High-density talent clusters 
• Startup accelerators for AI 
• Centers for global exports 

Do it early, put teams early. Grab the early advantages. 

3. Government Sandboxes are to be Used For AI Innovations Piloting 

Sandboxes give you a chance to: 

• Legally test AI models 
• Make use of national datasets
• Validation of algorithms
• Regulatory approvals done in an expedited manner

I am already through my teams mulling over sandbox-ready pilots in:

• Automation of customer journey
• Risk assessment
• Management of identity
• Detection of fraud

4. Early positioning of your company for global compliance

Due to the policy: 

• Algorithm auditing 
• Human control 
• AI that is understandable 

Begin application with: 

• Principles of EU AI Act 
• NIST AI Risk Framework 
• ISO/IEC AI Governance Standards 

Compliance-ready companies are rewarded in the export markets. 

5. Governments’ Cooperation as a Tool for International Expansion

The pillar of international cooperation is very advantageous for companies: 

• Joint research with foreign universities 
• AI-FDI for product scaling 
• Export deals via government missions 
• Cloud partnerships across borders 

This is the quickest way to transition from a service exporter to an AI product exporter. 

Pakistan’s Moment to Build With Intent

The National AI Policy 2025 offers us: 

• A national AI fund 
• A talent pipeline 
• Compute infrastructure 
• Governance frameworks 
• Export incentives 
• International partnerships 

Nevertheless, changes cannot be initiated solely by means of policies. Creators, executives, technicians, product developers, and co-founders are those who change the world. The countries that are willing to go all out in developing, creating, and making AI widely accepted will be the ones to set the pace in this decade. Being a leader in the field, I can say without any doubt that Pakistan has joined the race of AI a bit late but not very late. We might still come out victorious if we produce quicker, more thoughtfully, and with a global vision. Ultimately, we will have to see if the National AI Policy 2026 reflects this.