For a tech-driven Pakistan

As the modern world accelerates towards a future purely dominated by technology, digitisation, and innovation, Pakistan finds itself at a major crossroads.

The US recently elected JD Vance as its vice-president, marking the arrival of millennial leadership in the White House. D D Eisenhower took the same step in 1952, bringing young and energetic Richard Nixon to the White House as VP – which ultimately brought John F Kennedy into the limelight in 1960. The progressive, innovative era of the US started with the ‘We will go to the moon’’ speech by JFK at Rice University.

The current transition in the White House symbolises a shift away from Baby Boomer-dominated leadership, with even the Democratic Party expected to follow suit with younger candidates soon for the 2028 run.

Pakistan, however, remains mired in what can only be described as a ‘Baby Boomer Syndrome’, with leadership from the same generation persisting since 1985. For nearly four decades, Pakistan has been governed by individuals disconnected from the demands of a rapidly changing world.

The time has come for a fresh, energetic, dynamic and versatile approach that embraces younger leaders with modern education and a forward-looking mindset – someone like Bilawal Bhutto Zardari, who represents the millennial generation.

Pakistan’s economic struggles are well documented. The solutions lie not in traditional remedies but in bold, innovative action. Globally, the tech sector has emerged as the most transformative force of the 21st century. India boasts over 100 unicorns, startups valued at over $1 billion, making it a hub of innovation.

The UAE, with Dubai at the forefront, has established itself as a regional leader in blockchain, fintech, and artificial intelligence. Pakistan, on the other hand, has significant IT talent but has so far lagged in capitalising on its potential. Despite producing world-class engineers and programmers, Pakistan’s IT exports remain a modest $2.6 billion annually, far below what its talent pool could achieve.

A balanced approach focusing on digital tax reforms, technology, and export diversification could provide sustainable solutions.

Tax reform remains a critical priority. With an informal economy comprising over 35 per cent of GDP, Pakistan’s tax base is narrow and inefficient. Digitising tax collection, broadening the tax base, and addressing chronic evasion and corruption could significantly boost state revenues. This, in turn, could fund investments in critical sectors like technology and infrastructure. Similarly, Pakistan’s energy sector is a significant drag on the economy, costing billions annually due to inefficiencies and theft. Investing in renewable energy and privatising loss-making state-owned enterprises would create fiscal space for more productive ventures.

Pakistan’s most significant opportunities lie in the digital economy. The global IT sector is booming, and Pakistan has the potential to emerge as a major player. The country already ranks among the top five in the world for freelance services, with young entrepreneurs leveraging platforms like Upwork and Fiverr. However, these efforts are fragmented and lack the government support needed to scale up. Establishing tech hubs modelled on Dubai’s success could transform Pakistan into a regional leader in technology and innovation.

Tech innovation is not just a choice but a necessity. A genius like Warren Buffet, known for his financial acumen, initially overlooked technology. However, he later recognised its importance and invested in Apple, now one of the world’s most valuable companies. Giants like Nvidia, Microsoft, and Amazon – members of the ‘Magnificent Seven’ – were once small startups but have grown into trillion-dollar entities, shaping the global economy. Pakistan must foster an environment that allows its tech startups to grow similarly, moving beyond survival to becoming global leaders.

Dubai’s rise as a tech hub offers a blueprint for Pakistan. Over the last two decades, Dubai has invested heavily in creating a startup-friendly ecosystem, attracting global talent, and fostering public-private partnerships. Pakistan could replicate this model by developing Special Economic Zones (SEZs) focused on technology. These zones could offer tax incentives, simplified regulations, and access to venture capital, creating an environment where startups can thrive. Collaboration with the UAE could further accelerate this process, establishing a regional tech corridor.

Leadership will be key to this transformation. Bilawal Bhutto Zardari, with his broader political acumen at a young age, and being Western-educated, is uniquely positioned to lead Pakistan into the technological future. Unlike Baby Boomer leaders who rely on outdated methods, Bilawal’s understanding of technology and global trends could drive investments in the tech sector and encourage innovation. He could champion initiatives like a national startup fund, tech education programmes, and policies that attract international investors.

Pakistan’s reliance on traditional industries like agriculture and textiles has limited its growth potential. While these sectors remain important, they cannot drive the kind of economic expansion needed to compete globally. Moving beyond textiles, which account for over 60 per cent of exports, Pakistan must focus on sectors like IT services, engineering, and pharmaceuticals. Startups like Airlift and Bykea have already demonstrated the potential of the local market. However, they face significant challenges, including limited access to venture capital and inadequate infrastructure. Addressing these issues could pave the way for a thriving startup ecosystem, turning Pakistan into a hub for innovation and entrepreneurship.

India’s success provides valuable lessons. The country’s robust tech ecosystem was built on policies that encouraged entrepreneurship, offered tax breaks for startups, and simplified regulations. By replicating these strategies and tailoring them to local needs, Pakistan could foster a similar environment. Pakistan’s young, digitally savvy population – over 60 per cent of the population is under 30 – represents a demographic dividend waiting to be tapped. However, this requires investment in digital literacy, infrastructure, and skills training.

Tourism and cultural exports also offer significant revenue potential. Pakistan’s rich heritage and natural beauty remain underutilised assets. Simplifying visa processes and promoting eco-tourism could attract millions of international visitors. Similarly, exporting Pakistani films, dramas, and music could generate revenue while enhancing the country’s global image.

Our trade policy also requires a strategic overhaul. Pakistan must actively negotiate trade agreements with ASEAN, the EU, and African markets to diversify its export destinations. Import substitution policies, focusing on local production of high-demand items like electronics and pharmaceuticals, could reduce reliance on imports and strengthen the domestic economy. Green bonds to fund renewable energy projects and the promotion of cultural exports can also generate revenue while positioning Pakistan as a forward-thinking nation.

Pakistan’s economic recovery demands more than incremental changes; it requires bold, innovative action. Younger leaders with modern perspectives, like Bilawal Bhutto Zardari, have the vision needed to embrace technology, foster entrepreneurship, and create a dynamic, future-ready economy.

The world is rapidly moving toward a new era defined by quantum computing, artificial intelligence, and blockchain. Pakistan cannot afford to be left behind. The time has come to pass the torch to a new generation of leaders who can guide the country into this new era, ensuring prosperity and growth for decades to come.

The writer serves as a senior analyst at e& money, a leading

global technology and telecommunications company headquartered in Dubai, UAE. He can be reached at: Sufghan@hotmail.com