Pakistan urged to create national AI authority, embrace open-banking framework

Pakistan should establish a National Data and Artificial Intelligence (AI) Authority and adopt open-data and open-banking frameworks to strengthen its digital economy, according to new research released by the Institute of Cost and Management Accountants of Pakistan (ICMA).

The recommendations come as the global AI sector continues to attract record levels of investment, with countries across the Middle East and North Africa (MENA), including the UAE, Bahrain, and Morocco, positioning themselves as regional hubs for AI and fintech innovation.

ICMA’s Research and Publications Department said Pakistan must accelerate policy reforms to unlock fintech growth, boost investor confidence, and compete in the global digital economy. The proposed independent authority would unify oversight of AI, data governance, and digital services, similar to existing models in the UAE and Bahrain.

“With Pakistan’s AI market projected to grow from USD 861 million in 2025 to USD 3.5 billion by 2031, the time for action is now,” the report said.

Key recommendations include launching pilot AI projects in agriculture, healthcare, and public finance, and establishing specialized data and AI academies to build workforce capacity. The institute also called for the implementation of a mandatory open-data policy and a phased open-banking framework to drive innovation and financial inclusion.

ICMA’s proposal outlines a coordinated governance model bringing together the National Information Technology Board (NITB), the National Centre of Artificial Intelligence (NCAI), and the National Centre for Big Data and Cloud Computing (NCBC), working alongside the recently created Pakistan Digital Authority.

Inspiration is drawn from the UAE’s Smart Dubai initiative and Bahrain’s Personal Data Protection Law, which have helped foster secure data sharing and innovation by aligning regulators, fintechs, and government agencies.

The report also calls for the creation of a tiered licensing system for digital banks, allowing fintech startups to evolve into fully regulated digital banks under clearly defined compliance and risk frameworks.

ICMA says that with support from the Ministry of IT and Telecom, Pakistan could become a regional leader in AI, fintech, and data-driven innovation.