CPEC 2.0: Pakistan’s government has received a major boost in its efforts to build a knowledge-driven digital economy, thanks to the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI). The organization highlighted the transformative potential of CPEC 2.0 and the proposed $1 billion artificial intelligence (AI) fund.
With 63% of Pakistan’s population being youth, this initiative comes at a crucial time. The country ranks as one of the world’s youngest by median age, a demographic advantage that could drive growth across various sectors if properly harnessed.
Nazir Hussain, President of PCJCCI, stated that the AI fund is a strategic initiative aimed at strengthening governance, promoting innovation, and unlocking opportunities for Pakistan’s youth. He emphasized the integration of advanced technologies into national development plans as essential for sustainable and inclusive economic growth.
The fund is expected to support a comprehensive technological overhaul, including AI education in federally administered schools, 1,000 fully funded PhD scholarships by 2030, and training one million non-IT professionals in AI skills to future-proof Pakistan’s workforce.
The stakes are high, as the International Monetary Fund (IMF) notes that digital economies can grow two to three times faster than traditional ones in developing markets. Pakistan’s current contribution to global AI research is less than 1%, indicating significant potential for growth if investments are matched with institutional capacity.
A Lahore-based technology policy analyst highlighted Pakistan’s advantage in its young population and expanding mobile internet base, which surpassed 200 million users in early 2026. The analyst stressed the importance of building local datasets and talent to address local challenges rather than importing solutions.
PCJCCI also aligned the AI initiative with the broader CPEC 2.0 framework and the government’s ‘Uraan Pakistan’ program, targeting export growth, affordable energy, and sustainability. The chamber believes these converging policies could enhance Pakistan’s economic resilience and competitiveness globally.
China, a global leader in AI investment, is seen as a natural partner for technology transfer and infrastructure development under the CPEC umbrella. PCJCCI plans to facilitate this through public-private partnerships, aiming for sustainable economic development.
Published in SouthAsianDesk, April 21, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
