Pakistan Govt to Fund AI Projects with Up to Rs1 Million Each Under New National Policy

MoIT unveils AI Centre of Excellence to bridge research and industry, with 400 projects to be supported annually

by Khashif Sarfraz
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Pakistan to Support AI Innovators with Rs1 Million per Project

The Government of Pakistan has announced a financial support package of up to Rs1 million for each artificial intelligence (AI) project that reaches the prototyping stage, in a landmark move to accelerate innovation and reduce reliance on imported technologies.

According to official documents from the Ministry of Information Technology and Telecommunication (MoIT), the scheme will be rolled out through the planned Centre of Excellence in Artificial Intelligence, which will act as a bridge between academic research and industrial applications.

400 Projects to Be Funded Annually

At least 400 AI projects in academia and the private sector will be funded each year, with priority given to initiatives that tackle socio-economic challenges and align with the National AI Policy.

Beyond financial support, the package includes:

  • Mentorship & incubation opportunities

  • Regulatory guidance to meet international standards

  • Investor networking to help scale prototypes into commercial products

Additionally, the government will allocate up to Rs200,000 each for 200 academic research projects annually, provided their findings are published in recognised international journals and platforms — further strengthening Pakistan’s global footprint in AI research.

Ensuring Transparency and Accountability

To maintain credibility, a monitoring and evaluation framework will assess:

  • Commercial viability of funded projects

  • Societal impact

  • Contribution to the AI-driven economy

Zakir Syed, Director of Internet Governance at MoIT, said the initiative marks a “decisive step towards promoting indigenous AI solutions,” adding that the vision is to establish Pakistan as a regional hub of AI innovation by 2035.

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Ahsan Iqbal: “AI Will Reshape Governance”

Federal Minister for Planning Ahsan Iqbal echoed this optimism during the National School of Public Policy Conference on AI in Governance in Lahore.

“Just as the industrial revolution reshaped societies, AI will reshape governance in Pakistan,” Iqbal said.

He highlighted the concept of winning several “Markas” (fronts), including:

  • Marka-e-Education

  • Marka-e-Health

  • Marka-e-Trade

  • Marka-e-Research and Technology

Iqbal stressed the importance of AI training for civil servants, urging the National School of Public Policy to establish a dedicated AI centre. He called for stronger collaboration between government, universities, startups, and industry to co-create governance solutions.

Outlook: Pakistan’s AI-Driven Future

With financial backing, incubation support, and policy direction, Pakistan is positioning itself as a serious contender in the global AI race. The initiative is part of a broader vision to make the country a $1 trillion economy by 2035, fuelled in part by digital transformation and AI adoption.

If successfully executed, the AI Centre of Excellence could not only nurture local talent but also attract international collaboration, creating a sustainable innovation ecosystem.

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