India’s 640 AI companies have secured funding compared with just four in Pakistan, highlighting the widening gap in artificial intelligence investment

Brussels/Islamabad, (Unib Rashid) – Pakistan must move beyond rhetoric and take concrete steps to strengthen its artificial intelligence (AI) ecosystem or risk missing another major opportunity in the global technology industry, former caretaker Federal Minister for Information Technology Dr Umar Saif has warned.

In a statement shared on social media, Dr Saif highlighted the changing direction of the global IT industry, arguing that the future is shifting away from traditional outsourced software development projects towards AI-driven technologies and solutions.

He cautioned that Pakistan had largely failed to capitalise on the growth of IT outsourcing to the same extent as India and now faces the risk of falling behind in the rapidly expanding AI sector.

According to figures cited by Dr Saif, 640 AI companies in India have received funding, compared with only four in Pakistan, underscoring the significant difference in the two countries’ ability to attract investment into AI-related businesses.

Dr Saif urged Pakistan to acknowledge the scale of the challenge and focus on practical measures rather than relying on optimistic claims about its technological progress.

His remarks highlight concerns about Pakistan’s preparedness for the next phase of the digital economy, in which AI is increasingly influencing software development, business operations, productivity and the creation of new technology-based products and services.

The comparison also raises questions about Pakistan’s ability to develop investable AI startups, attract venture capital, strengthen research and development, and turn its technology talent into globally competitive businesses.

India’s larger AI funding ecosystem offers a point of comparison for Pakistan as it seeks to expand its presence in the international technology market. However, funding figures alone do not capture the full strength of a country’s AI industry, which also depends on talent, research, infrastructure, access to computing resources and commercial adoption.

For Pakistan, the challenge is to translate its existing IT workforce and entrepreneurial potential into sustainable AI businesses capable of competing in international markets.

Dr Saif’s warning serves as a call for a more action-oriented approach to technology policy, investment and innovation, as countries around the world compete to establish stronger positions in the AI-driven economy.