CPEC 2.0, AI reforms seen driving Pakistan's future digital economy
ISLAMABAD, March 3: China-Pakistan cooperation, particularly under the evolving second phase of the China-Pakistan Economic Corridor (CPEC 2.0), is expected to complement Pakistan's ambitious digital transformation agenda as the government launches a US $1 billion Artificial Intelligence (AI) fund aimed at building a future-ready economy.
Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), Dr Nadeem Javaid, on Monday afternoon expressed optimism that the initiative would accelerate innovation, strengthen governance reforms and create meaningful opportunities for Pakistan's rapidly growing youth population.
Speaking on the sidelines of the Pakistan Governance Forum 2026, held under the theme “Reimagining Governance for URAAN Pakistan,” Dr. Javaid said the AI fund envisages establishing a nationwide technological ecosystem. The programme includes introducing AI education in all federally administered schools, awarding 1,000 fully funded PhD scholarships by 2030, and training one million non-IT professionals in artificial intelligence skills to improve productivity and livelihoods.
He noted that Pakistan's demographic structure presents both an opportunity and a challenge, as nearly 63 percent of the population falls within the youth bracket. Harnessing this demographic dividend through innovation and economic growth, he said, would be essential for sustainable development.
Dr Javaid highlighted that emerging initiatives under CPEC 2.0 were being shaped through mutual Pakistan-China interests, creating synergy with national reform priorities under the government's Uraan Pakistan programme. These efforts align with broader goals of boosting exports, ensuring affordable energy, improving efficiency and promoting environmental sustainability.
According to him, the AI fund could stimulate youth-led startups, Small and medium-sized enterprises (SMEs) and micro-enterprises, enabling service-sector innovation and small-scale manufacturing expansion.
