AI Landscape in Pakistan

# AI Landscape in Pakistan

Pakistan’s technology sector is undergoing a transformative phase, with Artificial Intelligence (AI) emerging as a key driver of innovation and economic growth. The country’s young, tech-savvy population, coupled with increasing governmental support and a burgeoning freelancing ecosystem, positions Pakistan to become a notable player in the global AI landscape. This article explores the current state of AI in Pakistan, including existing software trends, the role of computing infrastructure, freelancing dynamics, major domains of AI application, and notable companies leading the charge. It concludes with an analysis of gaps, opportunities, and recommendations for advancing Pakistan’s AI ecosystem.

Existing Software and Computing Trends in Pakistan

Pakistan’s IT sector is experiencing significant growth, driven by global demand for AI integration and digital transformation. According to recent estimates, AI could contribute between USD 10 billion and USD 20 billion to Pakistan’s economy by 2030, with up to 30% of IT export companies’ solutions already incorporating AI technologies. The broader digital transformation is projected to add PKR 9.7 trillion (approximately USD 34.9 billion) in economic value by 2030. This growth is supported by the development of Pakistan’s Digital Public Infrastructure (DPI), which aims to centralize social, economic, and governance data through initiatives like digital identity systems.

The software landscape in Pakistan is characterized by a focus on AI-driven tools such as chatbots, predictive analytics, and data management systems. Cloud computing is another major trend, with companies increasingly relying on scalable cloud solutions to support AI workloads. However, Pakistan faces challenges in computing infrastructure, particularly the lack of local data centers with AI capabilities. Currently, the country relies heavily on foreign data centers, which poses limitations due to data sensitivity regulations that restrict storing personal data abroad. Stakeholders are optimistic, however, anticipating the emergence of local AI-capable data centers within the next one to two years, with initiatives like Data Vault Pakistan’s AI-focused data center in Karachi marking a step toward self-reliance.

Python has become a cornerstone for AI development in Pakistan, especially among graduate students and professionals working on machine learning (ML), natural language processing (NLP), and computer vision projects. The demand for large-scale data storage and high-performance computing resources, such as GPUs, is also rising, as evidenced by initiatives like the National Centers of AI (NCAI) established in 2018, which involve research labs across major cities like Islamabad, Lahore, Karachi, and Peshawar.

Freelancing Trends in Pakistan

Pakistan’s freelancing community is a vital component of its tech ecosystem, with approximately one million freelancers generating USD 1.2 billion annually. Platforms like Upwork and Fiverr have turned Pakistan into a thriving hub for tech freelancing, with software development, web development, and AI-related services among the most in-demand skills. The affordability of Pakistani freelancers, who offer rates 30% to 50% lower than their Indian counterparts, enhances their global competitiveness. According to Payoneer’s Head of Business Development in Pakistan, Mohsin Muzaffer, public and private initiatives have significantly improved the quality of freelancers, positioning Pakistan as a leading digital workforce hub.

Freelancers in Pakistan are increasingly specializing in AI-related tasks, such as developing ML models, chatbots, and data analytics solutions. This trend aligns with the global demand for AI expertise, enabling Pakistani freelancers to secure lucrative international projects. However, the focus on freelancing over corporate environments has led to a relatively underdeveloped business culture among IT companies, which may challenge scalability for larger AI projects.

Major Domains of AI Application in Pakistan

Pakistani companies and startups are leveraging AI across diverse sectors to address local and global challenges. The major domains include:

1. Healthcare: AI is finding increasing use in healthcare through applications like diagnostics, telemedicine, and patient data management. For instance, Xylexa, Inc. uses AI and computer vision to provide fast, accurate, and cost-effective medical image diagnosis, improving caregiver efficiency.

2. Finance: AI-powered solutions in fraud detection, algorithmic trading, and customer service automation are gaining traction. Companies like AdalFi offer AI-based lending platforms with proprietary credit-scoring tools for consumers and SMEs.

3. Agriculture: With agriculture being a backbone of Pakistan’s economy, AI is used for precision farming, pest control, and yield prediction. Startups like Crop2x provide web and AI-based precision agriculture solutions, enabling farmers to monitor crops remotely and reduce environmental impact.

4. E-commerce and Retail: AI-driven recommendation engines, inventory management, and dynamic pricing models are enhancing e-commerce efficiency. Adlytic AI, for example, integrates video analytics with POS and online store data to optimize retail operations.

5. Education: AI is having an impact in education through personalized learning platforms and automated grading systems. LearnOBots connects education to future workforce needs using AI-driven STEAM (Science, Technology, Engineering, Arts, and Mathematics) approaches.

6. Customer Service and Chatbots: AI-powered chatbots and virtual assistants are widely adopted for automating customer support. Companies like Tezeract focus on NLP solutions, including Urdu-language chatbots, to address local market needs.

7. Logistics and Supply Chain: AI is optimizing logistics through predictive analytics and route planning. Ahex Technologies develops custom AI systems for tracking vehicle performance and delivery timings.

Examples of Pakistani AI Companies

Several Pakistani companies are making significant strides in the AI domain, contributing to both local and global markets. Below are notable examples with their website addresses:

1. Xeven Solutions (https://xevensolutions.com)

- Specializes in AI development services, including IoT, augmented reality, and chatbot development. Known for innovative AI solutions tailored to enterprise needs.

2. 10Pearls (https://10pearls.com)

- A major player offering AI tools for sentiment analysis, computer vision, and IoT across industries like healthcare, finance, and education.

3. Glaxit (https://glaxit.com)

- Provides AI solutions in NLP, machine learning, and predictive analytics, helping businesses automate tasks and gain data-driven insights.

4. Systems Limited (https://www.systemsltd.com)

- A veteran in the tech industry, offering AI services like data mining, image recognition, and language translation, with notable success in reducing hospital wait times by 30%.

5. Vyro (https://vyro.ai)

- Focuses on AI-powered content creation tools, serving over 5 million users globally with 20 apps for generative AI content.

6. Tezeract (https://tezeract.ai)

- A promising startup specializing in computer vision and smart video analytics for applications in security, traffic management, and e-commerce.

7. Data Vault (Website not publicly listed; contact via LinkedIn or industry networks)

- Developer of Zahanat AI, Pakistan’s first locally developed generative pre-trained transformer (GPT) platform, designed to reflect the nation’s culture and values.

8. Ahex Technologies (https://ahex.co)

- Offers end-to-end AI solutions, including NLP, computer vision, and recommendation engines, with a focus on custom solutions for logistics and other sectors.

9. Cubix (https://www.cubix.co)

- Provides AI-based solutions for automating operations and analyzing data trends in sales, customer reviews, and more.

10. Stixor (https://stixor.com)

- Leads in tailored AI solutions for industries like oil and gas, education, and legal services, with projects like AI-powered platforms for engineering efficiency.

Statistics Highlighting Pakistan’s AI Landscape

- Market Growth: The AI market in Pakistan is projected to grow at a compound annual growth rate (CAGR) of 27.76% from 2025 to 2030, reaching a market volume of USD 3.23 billion by 2030.

- IT Exports: Pakistan’s IT exports are expected to reach USD 3.5 billion by 2029, with AI and cloud computing as major drivers. In December 2024, IT exports hit a record USD 303 million.

- Freelancing Revenue: Approximately one million freelancers contribute USD 1.2 billion annually, with AI and data science skills in high demand.

- Salary Trends: The average annual salary for AI professionals in Pakistan has rising considerably in last few years and is among the top in IT field. In senior roles, pay of around 1-2Mn is about average.

- Startup Ecosystem: There are 188 AI startups in Pakistan, with 19 securing funding, including one with Series A+ funding.

- Skill Gap: Demand for AI professionals exceeds supply, creating a significant skill gap that requires enhanced educational programs.

Gaps in Pakistan’s AI Ecosystem

Despite its potential, Pakistan’s AI landscape faces several challenges:

1. Infrastructure Limitations: The absence of local data centers with AI capabilities forces reliance on foreign infrastructure, hindered by data privacy regulations.

2. Skill Shortage: A lack of advanced AI training programs and skilled professionals limits the ability to meet growing demand.

3. Low Awareness: Many traditional industries and rural communities remain unaware of AI’s potential, slowing adoption.

4. Funding Constraints: Financial limitations restrict large-scale AI deployment, particularly in the public sector.

5. Ethical and Cultural Challenges: Concerns about job displacement and cultural resistance to AI adoption pose barriers, especially in conservative regions.

6. Policy Gaps: While initiatives like Vision 2025 and Digital Pakistan Policy 2018 exist, a concrete plan for AI deployment in public organizations is lacking.

Future Oulook and Recommendations

Pakistan’s AI landscape offers immense opportunities for growth, particularly in healthcare, agriculture, and e-commerce, where AI can address local challenges like resource scarcity and inefficiency. The country’s large youth population and competitive pricing in the global market further enhance its potential to become a hub for AI innovation.

Recommendations:

1. Invest in Local Infrastructure: The government and private sector should prioritize building AI-capable data centers to reduce reliance on foreign services and comply with data privacy laws.

2. Enhance AI Education: Universities and training institutes should expand AI-focused curricula, offering specialized degrees and certifications in ML, NLP, and computer vision. FAST university has been leader in AI education for past few years with other universities like NUST etc catching up fast. Comsats University’s PKR 1 billion AI project is a step in this direction. In addition, students in young age can be encouraged to persue high in demand certification like Google Professional Machine Learning Engineer Certificate, Microsoft:Azure AI Engineer Certificate and various deep learning certificates that assure instant high paid jobs.

3. Promote Public-Private Partnerships: Collaboration between academia, industry, and government can bridge the skill gap and align training with market needs.

4. Increase Awareness Campaigns: Targeted initiatives to educate small businesses and rural communities about AI’s benefits can accelerate adoption.

5. Develop Clear Policies: The government should create a detailed roadmap for AI integration in public services, addressing ethical, cultural, and cybersecurity concerns.

6. Encourage Startup Funding: Increased seed funding and venture capital access, as demonstrated by the PKR 1.1 billion allocated in 2018, can boost AI startup growth.

7. Foster Global Collaboration: Pakistani AI companies and researchers should continue partnering with international organizations to access cutting-edge knowledge and expand export markets.

Conclusion

Pakistan’s AI landscape is vibrant and rapidly evolving, with significant advancements in software development, freelancing, and domain-specific applications. Companies like Xeven Solutions, 10Pearls, and Data Vault are leading the charge, delivering innovative solutions across healthcare, finance, agriculture, and more. However, challenges like infrastructure limitations, skill shortages, and low awareness must be addressed to unlock AI’s full potential. By investing in education, infrastructure, and policy development, Pakistan can position itself as a competitive player in the global AI arena, driving economic growth and technological advancement in the coming years.

Sources:

- Invest2Innovate, 2024[](https://invest2innovate.com/artificial-intelligence-where-does-pakistan-stand/)

- Statista, AI Market Forecast[](https://www.statista.com/outlook/tmo/artificial-intelligence/pakistan)

- Nucamp, Tech Jobs in Pakistan, 2025,[](https://www.nucamp.co/blog/coding-bootcamp-pakistan-pak-top-10-tech-companies-to-work-for-in-pakistan-in-2025)[](https://www.nucamp.co/blog/coding-bootcamp-pakistan-pak-ranking-the-top-10-highpaying-tech-jobs-in-pakistan-in-2025)

- Tracxn, AI Startups in Pakistan, 2025[](https://tracxn.com/d/explore/artificial-intelligence-startups-in-pakistan/__8hhT66RA16YeZhW3QByF6Vsmxd-cc0LBGvkdvbRM4T4/companies)

- Tech Mag, Scope of AI in Pakistan, 2024[](https://techmag.com.pk/the-scope-of-ai-in-pakistan-challenges-and-opportunities/)

- Posts on X regarding Zahanat AI and Data Vault,