Pakistan has proposed the creation of a National Artificial Intelligence Fund (NAIF) under its National AI Policy to support research, commercialization, and adoption of artificial intelligence and related technologies.
According to the policy framework, NAIF will be managed through Ignite’s Research and Development (R&D) resources, with at least 30 per cent of its R&D budget permanently allocated to the fund, as required under the Telecommunication Reorganization Act, 1996 (amended 2006).
The initiative is designed to finance AI-focused projects across universities, industries, IT spin-offs, and startups, while fostering stronger collaboration between academia and the private sector to develop practical solutions to societal challenges.
As part of the plan, a thematic Innovation Fund will also be launched through the proposed Centres of Excellence in Artificial Intelligence (CoE-AI) to back AI solutions in national priority areas. NAIF will provide financial assistance for pilot projects, testing, scaling of innovations, and capacity-building programs.
A nationwide network of CoE-AI is to be developed, with main centers in Islamabad, Karachi, and Lahore, and supporting hubs in Peshawar, Quetta, Faisalabad, and Hyderabad. Operating under a two-tier model, the primary centers will focus on national priorities, while the auxiliary hubs will cater to regional needs.
These centers, funded through NAIF, will promote demand-driven AI research, provide access to computing infrastructure, labs, and test-beds, and ensure environmental sustainability. They will also collaborate with the Higher Education Commission (HEC) and provincial education departments to support academic research, incubate startups, and integrate AI curricula in schools, colleges, and universities.
In addition, the CoE-AI will run training programs, internships, and certification courses with public and private partners, while helping regulators establish sandboxes to promote the ethical and responsible use of AI.
