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AI & Emerging Technology Regulations

AI policy, blockchain/crypto, IoT frameworks & social media regulation

AI Policy 2025 Islamabad AI Declaration PDPB 2023
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Key Data & Rates

Major Digital Nation Initiatives (2025-26)
Key digital transformation initiatives by Government of Pakistan Verified May 3, 2026
InitiativeAuthorityStatusDescription Reference
5G RolloutPTA/SBP✅ Spectrum sold Mar 2026NGMS licenses to all 4 CMOs PTA – 5G Spectrum Auction Results
AI Policy 2025MOITT✅ Cabinet approvedNational AI governance framework MoIT&T – AI Policy 2025
Pakistan Digital AuthorityMOITT✅ CreatedChair: Dr. Sohail Munir MoIT&T – Pakistan Digital Authority
Digital Nation Pakistan Bill 2025Parliament✅ Both houses passedDigital governance legislation MoIT&T – Digital Nation Pakistan...
Islamabad AI DeclarationMOITT✅ Signed$1B AI commitment by 2030 MoIT&T – Islamabad AI Declaration
Sovereign AI InitiativeMOITT✅ Joined Mar 2026Zhongguancun Forum, Beijing MoIT&T – Sovereign AI Initiative
RAAST (Instant Payments)SBP✅ LiveReal-time gross settlement SBP – RAAST Instant Payments
Cyber Shield (Banking)SBP✅ Launched Mar 2026Banking cybersecurity framework SBP – Cyber Shield Banking Security
EPADS V2.0 (E-Procurement)PPRA✅ ~700 agencies~8,400 registered vendors PPRA – EPADS V2.0 E-Procurement
Single Sales Tax ReturnFBR/Provinces🔄 In progressUnified filing across all jurisdictions FBR – Single Sales Tax Return
Digital InvoicingFBR🔄 Phased rolloutMandatory for select sectors FBR – Digital Invoicing Rollout
Teen Bank AccountsSBP✅ Jan 202626M teens can open accounts SBP – Teen Bank Accounts
PTA Digital AssistantPTA✅ Feb 2026AI-powered citizen support PTA – Digital Assistant
PTA DVS AppPTA✅ LiveDevice verification iOS + Android PTA – DVS App
DIRBS EnhancementPTA✅ ActiveIMEI registration and tracking PTA – DIRBS Enhancement
FBR TaxRay AIFBR✅ LaunchedAI-based taxpayer info portal FBR – TaxRay AI Portal
NADRA Digital IDNADRA✅ ActiveBiometric identity, CNIC/Aadhaar model NADRA – Digital ID
Pakistan Single Window (PSW)PSW/FBR✅ ActiveUnified trade facilitation PSW – Pakistan Single Window
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Pakistan AI & Emerging Tech Policy Landscape
Key milestones in Pakistan AI and emerging technology governance Verified May 3, 2026
DateMilestoneAuthoritySignificance Reference
Dec 2025AI Policy 2025 approvedFederal CabinetNational AI strategy framework MoIT&T – AI Policy 2025 Approved
2025Pakistan Digital Authority createdMoITTChair: Dr. Sohail Munir MoIT&T – Pakistan Digital Author...
2025Digital Nation Pakistan Bill passedParliamentComprehensive digital governance PTA – 5G Spectrum Auction Comple...
2025Islamabad AI Declaration signedPakistan + partners$1B AI commitment by 2030 SBP – Cyber Shield Launched Mar ...
Mar 2026Sovereign AI Initiative joinedZhongguancun Forum BeijingAI infrastructure partnership IGNITE – PM Cloud Startups 2026
Mar 20265G Spectrum Auction completedPTA5G licenses granted to CMOs (Mar 19) NCCIA – Operational Apr 2026
Mar 2026SBP Cyber Shield launchedSBPAI-powered banking cyber protection IGNITE – INSPIRE Semiconductor P...
Mar 2026PM Cloud Startups programIgniteCloud startup support IGNITE – INSPIRE Semiconductor P...
Apr 2026NCCIA operationalFederalDedicated cyber crime agency IGNITE – INSPIRE Semiconductor P...
OngoingINSPIRE (semiconductor)Ignite/MoITTSemiconductor capability building IGNITE – INSPIRE Semiconductor P...
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Details & Regulations

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

OverviewSOURCE VERIFIED

Pakistan is developing comprehensive frameworks for AI, blockchain, IoT, and emerging tech. The Digital Nation Pakistan Bill 2025 and Islamabad AI Declaration signal accelerating regulatory maturation. IT companies must prepare for binding compliance across emerging tech domains.

AI Regulation in PakistanSOURCE VERIFIED

Pakistan National AI Strategy (MoITT Draft)

MoITT drafted a National AI Strategy with phased approach: foundation (2024–2026), acceleration (2026–2028), leadership (2028–2030). Pillars: AI talent, data governance, infrastructure, ethical deployment. MoITT »

Islamabad AI Declaration — 9 Principles for Sovereign AI
1AI Sovereignty
2Data Localization
3Inclusive Access
4Ethical Design
5Accountability
6Security by Design
7Sustainability
8Collaboration
9Resilience
$1B AI Commitment by 2030 (Indus AI Week, Feb 2026)

Indus AI Week (Feb 2026) announced $1B AI investment by 2030 for research centers, talent upskilling, GPU infrastructure, and sector deployment. Align AI R&D proposals with Indus priorities for government partnerships.

Pakistan Digital Authority (Chair: PDA Chairperson (verify current appointment))

The Digital Nation Pakistan Bill 2025 establishes the Pakistan Digital Authority (PDA) chaired by PDA Chairperson (verify current appointment), with mandate over digital infrastructure, data governance, AI oversight, and emerging tech standards. IT companies deploying AI must register with PDA, submit algorithmic impact assessments, and comply with technical standards.

PDPB AI Provisions
  • Algorithmic transparency — disclose automated decision logic to data subjects
  • Data minimization — limits on repurposing data for AI training without consent
  • Right to explanation — human-readable explanations of AI decisions affecting rights
  • AI breach notification — 48-hour reporting for AI incidents involving personal data
Sector-Specific AI Regulation
SectorRegulatorStatusIT Obligations
HealthcarePMDC + MoITTDraft guidelines; clinical AI needs PMDC approvalPre-market approval; audit trails; PDPB anonymization
FinanceSBP + SECPSBP AI Risk Framework; SECP AI disclosureRisk assessments; explainability; annual fairness audits
DefenseMoD + NITBClassified policy; dual-use restrictionsSecurity clearance; approved vendors; export control
AI Ethics Risk Assessment: Government AI projects >PKR 10M require assessment for bias/fairness, transparency, human oversight, data governance, security, and societal impact. Bidders on government AI contracts must submit with proposals.

Blockchain & CryptocurrencySOURCE VERIFIED

SBP Prohibition on Banks (April 2018, Still in Effect)

The SBP circular (April 2018) prohibits banks from facilitating crypto. Fully in effect as of 2026. No crypto transfers, accounts, or services. SBP »

No SECP Licensing for Crypto Exchanges

No licensing framework exists. No exchange holds a valid Pakistani license. IT companies should NOT develop or host crypto exchanges for Pakistan.

ETO 2002 — Smart Contracts Legal Basis

The Electronic Transactions Ordinance 2002 recognizes electronic records, signatures, and smart contracts. Blockchain smart contracts are legally permissible under ETO 2002 data integrity and signature verification requirements.

CBDC (Digital Rupee) Pilot

SBP piloting the Digital Rupee for wholesale use (interbank settlement, cross-border remittances). Retail CBDC has no timeline. Payments companies should prepare for CBDC integration.

State of Virtual Assets Bill (Draft)

Under inter-ministerial review. Would establish VASP licensing, AML/CFT per FATF Travel Rule, consumer protection, and a Virtual Asset Regulatory Authority. Until enacted, SBP 2018 circular remains primary guidance.

Legal Status & Guidance
ActivityStatusBasisGuidance
Blockchain apps (supply chain, identity)Legal & EncouragedETO 2002; NITBPursue PPP opportunities
Smart contract developmentLegal & PermissibleETO 2002Ensure ETO compliance
CBDC / Digital RupeePilot PhaseSBP pilotMonitor SBP announcements
NFT marketplaceGrey AreaNo regulationProceed with caution
DeFi protocolsGrey AreaNo regulationAvoid Pakistani retail
Crypto exchangeProhibitedSBP 2018; no SECPDo NOT launch
Crypto paymentsProhibitedSBP 2018No bank facilitation
Critical: Until the Virtual Assets Bill is enacted, do NOT develop crypto exchange/payment platforms. Non-financial blockchain remains legal and encouraged.

IoT Security FrameworksSOURCE VERIFIED

PTA Type Approval for IoT

PTA requires type approval for IoT devices with SIM/cellular connectivity: technical specs, RF testing, SAR compliance, fees. Mandatory before deployment. Non-compliant devices face import ban and network blocking. PTA Legislation »

DIRBS Registration

DIRBS requires all IoT devices with IMEI/identifiers registered before import/sale. Unregistered devices blocked from Pakistani networks. Bulk registration available for enterprises.

NITB IoT Guidelines for Government

NITB guidelines: minimum security baselines for IoT procurement (passwords, firmware, encryption), data governance for IoT-generated data, vendor assessment criteria, and lifecycle management.

NTISB IoT Security Baseline

NTISB guidelines (aligned with ETSI EN 303 645 & NIST SP 800-183):

  • Change default passwords before deployment; enforce complexity
  • TLS 1.2+ minimum for IoT data in transit
  • Signed/verified firmware update mechanisms
  • Mandatory vulnerability disclosure policy
  • Network segmentation isolating IoT from critical infrastructure

NTISB Advisories »

FrameworkCoverageApplies ToRequirement
PTA Type ApprovalRF/Cellular IoT certificationIoT with SIM/connectivityMandatory before deployment
DIRBSDevice ID & blockingIoT with IMEIMandatory before import/sale
NITB GuidelinesGovt IoT procurementGovernment projectsMandatory for govt contracts
NTISB BaselineIoT security requirementsAll IoT in PakistanRecommended; mandatory for govt
PECA 2016Unauthorized IoT accessAll IoTMandatory (criminal penalties)
ETSI EN 303 645Consumer IoT baselineRecommendedRecommended adoption

Social Media RegulationSOURCE VERIFIED

PECA 2025 Amendment — Section 21 Strengthened
  • Prison up to 5 years (from 3) for defamatory content
  • Definition covers deepfakes and AI-generated defamation
  • Platform liability: 24-hour removal requirement
  • Damages up to PKR 5M; enhanced FIA cross-border jurisdiction
PTA Social Media Rules 2020
RequirementDetailsPenalty
RegistrationRegister with PTA within 3 monthsBlocking; fine up to PKR 50M (per PEA 2025)
Content Removal24 hours (16 hours for terror content)Blocking; enhanced fines
Grievance OfficerPakistan-based; 7-day SLAFine up to PKR 25M (per PEA 2025)
Data LocalizationData accessible to Pakistani authoritiesCompliance orders
Blocking OrdersPTA can direct ISP blockingFull platform blocking

PTA Legislation »

PMLC 2020 (Non-Consensual Sexual Content)
  • Criminal penalties: up to 7 years and/or PKR 1M fine (per PMLC 2020 §3)
  • Platform removal: 6 hours (vs 24-hour general window)
  • Victim identity protection; FIA dedicated cybercrime cell
IT Companies: Social Media Feature Requirements
  • PTA Registration: Platforms with >100K Pakistani users
  • Content Moderation: Automated unlawful content detection
  • Grievance Officer: Pakistan-based; 7-day SLA
  • Data Retention: Minimum 90 days for law enforcement
  • Transparency Reports: Quarterly to PTA
  • Deepfake Detection: Required under PECA 2025

Emerging TechnologiesSOURCE VERIFIED

5G & Edge Computing
  • Edge computing: 5G enables edge AI inference, real-time IoT analytics
  • Private 5G: Deploy for campus environments (hospitals, factories, logistics)
  • Network slicing: Tailored 5G slices for specific app requirements
  • Regulatory: PTA type approval for 5G IoT; PDPB for edge data centers
AR/VR Development Regulations
AreaRegulationGuidance
ContentPECA 2016/2025 applies to AR/VRContent safety filters
PrivacyPDPB covers biometric/spatial dataExplicit consent for biometrics
SafetyConsumer Protection ActHealth warnings; age gating for VR
IPCopyright Ordinance 1962No copyrighted AR overlays without license
Digital Twins & Simulation
  • Government: NITB exploring digital twins for smart city planning
  • Data protection: PDPB data minimization applies to personal attribute replicas
  • Infrastructure: CADD evaluating for urban planning compliance
  • Legal: No specific legislation; PDPB + Copyright Ordinance apply
Quantum Computing Readiness
  • Research: NUST, LUMS, COMSATS have quantum computing groups
  • Government: MoITT monitoring for national security implications
  • Crypto readiness: SBP & NTISB assessing post-quantum migration
  • IT guidance: Adopt crypto-agile architectures; begin quantum risk assessment; regulation expected 2028–2030
TechnologyMaturityRegulationAction Required
5G/EdgeEarly deploymentPTA spectrum frameworkType approval; PDPB for edge data
AR/VRGrowing marketNo specific law; PECA & PDPB applyContent safety; biometric consent
Digital TwinsPilot/ResearchNo specific regulationPDPB compliance; IP considerations
QuantumResearch phaseMonitoring phaseCrypto-agile architectures; risk assessment

pseb-ai-2025">2025 AI Policy Developments & Market DataSOURCE VERIFIED

National AI Policy 2025 — Cabinet Approved (Federal/ICT)

The Federal Cabinet approved the National AI Policy 2025, a six-pillar framework: (1) AI talent, (2) data governance, (3) infrastructure, (4) ethical deployment, (5) innovation funding, (6) international partnerships. Target: Pakistan as leading AI hub in South Asia by 2035.

GO AI Hub inaugurated in Islamabad (Pakistan-Saudi initiative) — advanced research, industry-grade AI solutions, Gulf market linkages. PSEB Annual Report 2025 »

INSPIRE Semiconductor Program — Rs. 4.5B Investment (Federal/ICT)

PSEB launched INSPIRE with Rs. 4.5 billion government funding to build Pakistan's semiconductor talent pipeline: 7,200 professionals, 6 IC labs (university partnerships), and groundwork for future OSAT ecosystem.

SkillTech Pakistan — 430,000 Trainings (Federal/ICT)

PM's SkillTech Pakistan (Sep 2025): six programs — Skill Bridge, C2X, SoftSkills, SkillLift 1.0, GAIN, MARKAZ. Partnerships with Huawei and ZTE. AI Leaders Fellowship (Google Cloud + SAP) for enterprise AI deployment.

PECA Amendment 2025 — Social Media Protection Authority (Federal/ICT)

PECA 2025 amendment establishes Social Media Protection and Regulatory Authority (SMPRA) with powers to: regulate content, enlist/block social media platforms, issue compliance directives, impose fines. IT companies with social media operations must register with SMPRA and comply with content takedown orders within 48 hours. PECA Amendment 2025 »

AI/ML Global Market Data — January 2025 (Federal/ICT)
MetricValueSource
Global AI Market Revenue (2024)USD 214 billionForbes/PSEB
Projected AI Revenue (2030)USD 1,339 billionPSEB AI/ML Profile
AI Market CAGR36.6%PSEB AI/ML Profile
Average AI Deal Size (2024)USD 23.5M (up 28%)VentureBeat
Global AI Deals Q3 20241,245PSEB AI/ML Profile
NLP Investment (2023)~USD 8BPSEB AI/ML Profile
Jobs Displaced / Created by 202585M displaced / 97M createdWEF/PSEB
Emerging Tech Global Market Snapshot (Federal/ICT)
TechnologyMarket Size (2024-25)ProjectedCAGR
Cloud ComputingUSD 735.45B (verify with primary research source)USD 1,481B by 202915.5%
IoTUSD 629.5B (2025)USD 435B by 2027 (Ind.)17.5%
BlockchainUSD 27.84BUSD 825.93B by 203252.9%
AR/VR/XRUSD 40.4BGrowing ~18%~18%
GamingUSD 244.22BUSD 397.21B by 202910.17%
CybersecurityUSD 193.73BUSD 562.72B by 203214.3%
FintechUSD 209.7BUSD 644B by 202925.18%
HealthTechUSD 262.63B (2022)USD 939.54B by 203213.1%
Sources: PSEB Sector Profiles, PSEB Annual Report 2025
Key Source Legislation for AI & Emerging Tech
DocumentYearAuthorityKey Impact
National AI Policy 2025 (Approved)2025MoITTEstablishes National AI Fund, AI regulatory sandbox, governance framework for AI development and deployment
Digital Nation Pakistan Act 20252025MoITTNational Digital Commission (PM-chaired), Pakistan Digital Authority, National Digital Master Plan
National AI Policy Draft V12022MoITTOriginal consultation draft — AI market enablement, responsible AI principles
5G Readiness Plan2022MoITT/World BankSpectrum management, infrastructure requirements, and regulatory framework for 5G deployment
Digital Nation Pakistan Act 2025 — Key Provisions NEW

The Digital Nation Pakistan Act 2025 is landmark legislation establishing the institutional framework for Pakistan's digital transformation. Per the PSEB Annual Report 2025, key provisions include:

ProvisionDetailsIT Sector Impact
National Digital CommissionChaired by the Prime Minister; includes all key federal and provincial stakeholdersTop-level digital governance ensures IT sector priorities get cabinet-level attention
Pakistan Digital AuthorityImplementing body for the National Digital Master PlanSingle authority for digital regulation coordination across NADRA, PTA, FBR, SECP
National Digital Master PlanComprehensive digitalization roadmap for government services and InfrastructureCreates massive IT procurement opportunities for digital government projects
Industry 4.0 StandardsAccelerates adoption of fourth industrial revolution technologiesAI, IoT, blockchain, and cloud requirements for regulatory compliance
Inter-agency CoordinationMandates collaboration among NADRA, PTA, FBR, SECP for unified digital strategyUnified digital ID, interoperable systems, reduced compliance complexity

Source: Digital Nation Pakistan Act 2025 (PDF) | PSEB Annual Report 2025 (Federal)

National AI Policy 2025 — Framework Overview NEW

The National AI Policy 2025 (Approved) provides the governance framework for AI development and deployment in Pakistan. Key elements reported by industry sources:

  • National AI Fund: Dedicated funding mechanism for AI research, talent development, and innovation programs
  • AI Regulatory Sandbox: Controlled testing environment for AI applications before market deployment
  • AI Governance Framework: Ethical AI principles, bias mitigation, transparency requirements, and accountability standards
  • Talent Development: Focus on AI skills training, university partnerships, and international collaboration
  • Innovation Funding: Support for AI startups, R&D incentives, and AI infrastructure development
  • International Partnerships: Positioning Pakistan in global AI ecosystem with DCO and bilateral cooperation

Source: National AI Policy 2025 (PDF) | PSEB Annual Report 2025 (Federal)

PSEB 2025 Annual Report Highlights NEW from PDF
MilestoneDetails
Record IT ExportsUS$ 3.8 Billion in FY 2024-25 — highest ever
Digital Nation Pakistan Act 2025Passed — establishes National Digital Commission (PM-chaired) and Pakistan Digital Authority
National AI Policy 2025Approved — economic growth, modernized public services, competitive AI ecosystem
SkillTech Pakistan430,000 advanced digital skills trainings over 3 years — 6 flagship programs including Skill Bridge, C2X, SoftSkills
DFDI Forum 2025Historic inaugural Digital FDI Forum with 400+ delegates, 30+ countries — AI, fintech, cybersecurity investment
Women's STP in AJKFirst Women's Software Technology Park in Muzaffarabad — dedicated workspace for female freelancers/entrepreneurs
Cashless Digital PaymentsNational push toward cashless payments ecosystem through MoITT

Source: PSEB Annual Report 2025 (PDF) (Federal)

AI & Emerging Tech Compliance Checklist
MoITT National AI Policy 2024 (Draft)
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GDPR Art. 35 / Draft Data Protection Bill Pakistan
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PTA 5G Security Guidelines 2023
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MoITT AI Ethics Framework 2024
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MoITT Cloud First Policy 2022
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Strategic Export Control Act 2016
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NITB E-Governance Standards 2020
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PSEB Registration Rules 2004
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Source Citations (171)
IGNITE — National Tech R&D Fund
https://ignite.org.pk/
restricted website
PSEB Annual Report 2025
https://www.pseb.org.pk/annual-report-2025
verified 2025 report
PSEB IT Industry Profile: AI, ML & Data Science
https://techdestination.com/
restricted 2024 report
PSEB IT Industry Profile: Cloud Platform & Services
https://techdestination.com/industry-profiles/cloud
verified 2024 report
PSEB IT Industry Profile: Blockchain
https://techdestination.com/industry-profiles/blockchain
verified 2024 report
PSEB IT Industry Profile: AR/VR/XR
https://techdestination.com/
restricted 2024 report
PSEB IT Industry Profile: IoT
https://techdestination.com/industry-profiles/iot
verified 2024 report
https://www.pakistancode.gov.pk/pdffiles/administrator2c2fd2fe7da1a657c40589a0705b3e20.pdf
pk_only 2025 law
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