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Govt to offer subsidies and tax incentives to boost AI integration in industry

by Web Desk
September 6, 2025
in Business
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Govt to offer subsidies and tax incentives to boost AI integration in industry
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ISLAMABAD, Sep 05 (APP): The government is preparing to introduce financial incentives, including subsidies and tax exemptions, to accelerate Artificial Intelligence (AI) integration and support digital transformation of industries in Pakistan.

According to Ministry of Information Technology documents available with Wealth Pakistan, the initiative is part of a comprehensive roadmap being developed by IT boards in collaboration with the Centre of Excellence for Artificial Intelligence (COE-AI).

Subsidies and tax exemptions will primarily target locally developed AI solutions, giving them preference over imported alternatives, while their overall market impact and influence will also be assessed.

Priority sectors identified for AI adoption include education, healthcare, record digitization, governance, agriculture, manufacturing, energy management, climate change mitigation, and the preservation of Pakistan’s cultural heritage.

The roadmap, set for rollout between 2025 and 2026, are aimed at expediting structural reforms and enhancing competencies across multiple sectors, with a particular focus on public institutions.

In the industrial domain, a network-model approach will be applied to provide full-life cycle support through an ecosystem that promotes AI-driven innovation, automation, and predictive solutions.

At the same time, intellectual property rights protections will be strengthened to allow innovators, researchers, and companies to secure copyrights, patents, and trademarks for AI-based developments.

According to the documents, the plan calls for the promotion of AI and Internet of Things (IoT) integration in industries to enhance productivity, ensure energy efficiency, enable predictive maintenance, and improve quality control. To encourage adoption, a series of awareness campaigns, workshops, and specialized training programs will be launched.

In parallel with industrial transformation, IT boards will design sector-specific training courses and certification programs to be launched in 2026, aimed at equipping the workforce with AI-related skills.

By that time, an AI maturity model and project management guidelines will be implemented in at least 50 institutions, ensuring compliance with international accountability and auditing standards.

A Ranking Management System (RMS) is also planned to evaluate AI solutions and guide users in selecting appropriate technologies. The RMS will be overseen by a government body to ensure transparency, regular updates, and an annual trust index survey.

The documents revealed that in order to support broader adoption in both public and private sectors, the COE-AI and AI Directorate will provide technical, regulatory, computational, and financial assistance.

The National Artificial Intelligence Fund (NAIF) will also be utilized to advance research and innovation, embedding AI into Pakistan’s industrial and economic framework.

The combination of subsidies, tax incentives, local solution prioritization, and workforce training is expected to build a sustainable AI ecosystem in Pakistan, positioning domestic industries at the forefront of digital transformation, the documents concluded.

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