08/21/2024
https://www.thenews.com.pk/magazine/money-matters/1221318-how-pakistan-can-compete-in-the-global-tech-arena
How Pakistan can compete in the global tech arena
Dr Javaid Laghari
The News, Aug 19, 2024
In my recent oped piece for this newspaper (‘IT's time for change’, July 17), I highlighted key technologies that have the potential to rapidly advance Pakistan’s economy and proposed a strategic path forward.
Among these technologies are artificial intelligence, cloud computing, cybersecurity, data science, mobile app development, full-stack development, game development, virtual reality/augmented reality, and the Metaverse. To put the impact into perspective, just four IT giants -- Apple, Microsoft, NVIDIA, and Alphabet (Google) -- have a combined market capitalization exceeding $12 trillion, which is more than 30 times the GDP of Pakistan.
Since its publication, I have received considerable feedback on how Pakistan can focus on developing high-quality skills in select areas, significantly boosting its exports and strengthening its economy. Among these areas, artificial intelligence (AI) emerges as the most prominent, with remarkable global growth happening at an accelerated pace.
AI is a transformative force that has significantly influenced our lives in recent years, particularly with the rise of generative AI technologies like ChatGPT and advancements in robotics. The AI market alone exceeded $184 billion in 2023 and is expected to surpass $800 billion by 2030, creating vast opportunities across various sectors, including healthcare, education, agriculture, mining, exploration, finance, military applications, autonomous vehicles, and more. If Pakistan can secure even one per cent of this AI growth, it could double its IT exports.
The world is rapidly advancing in the development and application of AI, and Pakistan, with IT exports of only $3 billion, will encounter significant competition from other nations with more robust IT ecosystems, a skilled workforce, and strong government support. Among these countries, India stands out as the undisputed leader, with projected IT exports of $200 billion, including $8 billion from AI alone in 2023, and over 10 per cent growth in this sector. India's competitive edge lies in its large market size, an abundant pool of English-speaking and highly skilled professionals, government support, and competitive pricing.
Similarly, many other English-speaking countries with lower labour costs and a skilled young workforce are quickly gaining ground in the IT sector. Although specific figures for AI exports are unavailable, both the Philippines and Vietnam have each exceeded $40 billion in IT exports, with Vietnam experiencing an impressive 22 per cent growth and the Philippines growing at 12 per cent. Eastern Europe, with its proximity to Western Europe and EU membership, is also making significant strides and holds a considerable advantage over Asian countries.
Even the UAE, with its small population largely comprising expatriates, is capitalizing on the IT revolution and rapidly advancing its IT sector. During my time as a commissioner in the Ministry of Education, UAE (following my tenure at the HEC), the foundation was laid for the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) in Abu Dhabi, a world-class graduate school. Additionally, Innovation and Entrepreneurship were introduced as mandatory subjects across all undergraduate programmes.
On a national level, the UAE launched the National Program for Coders, aiming to create the world’s best ecosystem for coders to develop, grow, and thrive, with a focus on enhancing the digital economy's contribution to the GDP.
Other countries and universities are quickly adapting to the rapidly evolving landscape of AI. For instance, the Task Force for AI Integration into Higher Education recently convened in Houston, TX, intending to position Texas as a hub of AI innovation. I was invited to participate in this meeting, where Curriculum and Workforce Development, along with Research and Innovation, were identified as top priorities.
In contrast, Pakistan is falling behind. The results of the Presidential Initiative for Artificial Intelligence & Computing (PIAIC), which was launched in several cities, remain unclear, and at best, it provided low-quality training to tens of thousands of students. The HEC's recent launch of the Microsoft Learn for Educators programme, aimed at enhancing curriculum and training educators, is hardly noteworthy. Pakistan has only a few universities with strong IT programmes, while the majority lag significantly behind.
Pakistan faces numerous challenges and deficiencies, with bureaucratic red tape and political interference further stifling progress. The government must urgently lift all restrictions on the IT sector, including removing firewalls, unblocking VPNs and social media platforms (such as Twitter/X), and refraining from suspending or slowing cellular and internet services. Additionally, the government should facilitate eCommerce payments, grant income tax exemptions to all IT professionals, and eliminate import duties on smartphones and IT equipment, among other necessary measures.
The current economic and political situation has led to a significant brain drain in the IT sector and other skilled industries. The Economic Survey 2023-24 underscores this concerning trend, revealing a sharp increase in the number of highly skilled professionals seeking jobs abroad, rising from 20,865 in 2022 to 45,687 in 2023.
Consequently, retaining top talent has become a major challenge, leaving the country with a dwindling pool of skilled professionals. As a result, the local market has stagnated, offering limited opportunities for gaining real experience for the IT industry to grow and compete on a global scale.
What is the path forward for Pakistan? First, we need to establish a National Task Force on AI, led by the prime minister and with the participation of the private sector. This task force should be responsible for recommending and implementing policies across all sectors. In my view, higher education reforms should start with overhauling the IT curriculum to align with global standards.
AI, Innovation, and Entrepreneurship should be mandatory courses for all undergraduate programmes. The government should provide laptops, smartphones, and free internet access to students upon admission to any university. Additionally, every university should establish an IT business incubator through public-private partnerships.
Institutions like HEC, NAVTTC, and TEVTA must be revamped to keep up with the rapidly evolving IT landscape, while private initiatives like the Hunar Foundation should be integrated into efforts to support skill development. Furthermore, all skill certifications awarded in Pakistan should be accredited by a global agency to ensure quality and international recognition.
Pakistan’s future depends on building a skilled workforce. Our economy can advance swiftly if the IT sector is prioritized to support this growth.
The writer is a former senator and former chairperson of the HEC.
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