ISLAMABAD, MAR 2: Vice Chancellor of the Pakistan Institute of Development Economics (PIDE) Dr Nadeem Javaid has expressed optimism that the federal government’s recently announced $1 billion fund for Artificial Intelligence (AI) would help build a future-ready digital economy and create meaningful opportunities for Pakistan’s youth.
The initiative envisages establishing a robust AI ecosystem across the country by introducing AI curriculum in all federally run schools, awarding 1,000 fully funded PhD scholarships to students by 2030, and launching a nationwide programme to train one million non-IT professionals in AI skills to enhance productivity and livelihoods.
“Youth is a big reality of Pakistan, as 63 per cent of the population falls under the youth bracket. If we fail to utilize this effectively, it would become a serious challenge,” he said while talking to APP on the sidelines of the recently concluded Pakistan Governance Forum 2026, held under the theme “Reimagining Governance for URAAN Pakistan.”
Dr. Javaid stressed that sustained economic growth was essential to absorb the growing youth population into productive employment. “If there is economic growth, there will be job creation and people will be absorbed. Along with jobs, entrepreneurial ventures are equally important,” he added.
He said the AI fund could create opportunities for youth-led startups, SMEs and micro-enterprises, including service-oriented ventures and small-scale manufacturing, adding “Hopefully, many new opportunities will emerge from this initiative where small companies and micro enterprises can take shape and contribute to economic activity,” he added.
Highlighting the broader governance perspective, Dr. Javaid said development initiatives must be seen within a comprehensive framework rather than in isolation.
“Governance is an overarching framework that determines outcomes such as improved livelihoods, job creation and investment inflows,” he remarked.
Referring to the evolving second phase of China-Pakistan Economic Corridor (CPEC 2.0), he said new initiatives were being shaped through mutual interests of Pakistan and China, creating synergy with national reform priorities under Uraan Pakistan.
He said that the government’s reform agenda focused on key drivers, including exports, energy affordability, efficiency and environmental sustainability, which are vital for improving the investment climate.
Dr Javaid said Pakistan already possessed key growth fundamentals such as a large workforce, a sizeable domestic market and an evolving industrial base, which could significantly contribute to GDP expansion if effectively leveraged.
However, he underscored that beyond policy reforms, mindset remained the biggest challenge.“You can make strict rules and SOPs, but without alignment of mindset, honesty and work ethics, desired results cannot be achieved,” he observed.
He said improved governance, effective utilization of youth potential and a positive national outlook were essential to translating reform initiatives into sustainable and inclusive economic growth.
