Business
MoITT to build apps for ministries | The Express Tribune
ISLAMABAD:
The government has directed the Ministry of Information Technology and Telecommunication (MoITT) to focus on developing commercial applications and stop working on building AI platforms.
It has also instructed the ministry to harness AI technology to create tailor-made applications for ministries and divisions, streamlining work processes, making them more efficient, and enabling better management of government business.
In July, the cabinet approved the National Artificial Intelligence (AI) Policy 2025 and issued several directions for its use.
During the discussion, cabinet members appreciated MoITT’s efforts in devising the policy. Members also gave suggestions to make the framework more robust and meaningful in Pakistan’s social and national context. The prime minister commended MoITT, noting that while change often brings challenges, AI is the need of the time, and the policy is a step in the right direction.
The cabinet directed that the AI Policy should focus on developing commercial applications rather than investing in platforms. It also acknowledged that AI adoption in workplaces could lead to job losses and stressed the need to reskill workers at risk. To meet growing demand for an AI-skilled workforce, the policy should ensure universities produce adequate numbers of AI graduates. AI basics should also be introduced at the school level to orient children from an early age.
The cabinet further asked MoITT to ensure AI benefits are not restricted to the elite and that no rural-urban divide emerges from the adoption of new technologies.
MoITT, in coordination with the Finance and Planning Divisions, was tasked with ensuring resources for meeting the policy’s goals. The ministry was also directed to prioritise work on the Cloud Policy.
MoITT briefed the cabinet that Pakistan’s IT sector is experiencing remarkable growth and has become a key driver of economic development. The industry has consistently shown resilience and innovation, with exports recording strong double-digit growth in recent years.
This trajectory highlights Pakistan’s growing global presence and its potential to contribute further to national prosperity. The country stands at a crucial juncture in the global technological landscape, with emerging technologies showing strong promise and positioning Pakistan as a potential tech destination.
The cabinet was apprised that emerging technologies, including AI, are becoming increasingly critical for the IT sector and carry strategic national importance. AI is rapidly reshaping industries worldwide, with applications in agriculture, logistics, smart cities, manufacturing, energy, and healthcare. While AI offers significant opportunities for growth, it also carries risks. Many countries are developing policies and regulations to maximise benefits while minimising potential downsides.
The cabinet was informed that, according to industry estimates, the global AI market size is expected to surpass $1.8 trillion by 2030. Officials emphasised that this is the right time for Pakistan to adopt an overarching approach to AI. With rapid global advances, Pakistan needs a comprehensive policy to harness AI’s potential while addressing challenges.
MoITT had already initiated work on drafting the National AI Policy to capture opportunities and prepare for risks. As part of an open process, the draft was developed with input from ministries, public sector entities, and provincial governments. It was also published on the ministry’s website for public comment. An inclusive committee, comprising representatives from the public and private sectors, industry, and academia, finalised the draft after reviews and incorporating stakeholder feedback.
The cabinet was informed that the draft National AI Policy is based on six pillars: AI Innovation Ecosystem, Awareness and Readiness, Secure AI Ecosystem, Transformation and Evolution, AI Infrastructure, and International Partnerships and Collaborations.
The policy will act as a guiding framework, coordinating scattered initiatives and fostering new ones across sectors. Current AI development efforts remain fragmented, leading to inefficiencies and missed opportunities.
A unified policy will align investments in research, talent, infrastructure, and ethical guidelines, creating an environment conducive to innovation. It will also encourage collaboration between academia, industry, and government, ensuring AI solutions are tailored to Pakistan’s unique needs and challenges.
Business
Britain ‘mustn’t cut ourselves off from China trade opportunities’, CBI chief warns
The UK must not “cut ourselves off” from trade opportunities in China despite security and business risks, the head of the Confederation for British Industry has warned.
CBI chief Rain Newton-Smith highlighted that British businesses see increased trade with Chinese firms as an opportunity to drive growth.
Her remarks came as business leaders were questioned by MPs on Parliament’s Business and Trade Select Committee regarding the UK’s economic relationship with China.
Last December, Prime Minister Sir Keir Starmer admitted China poses security threats to the UK but urged for greater business ties.
Ms Newton-Smith, chief executive of one of the UK’s largest business groups, was positive about the Government’s engagement with China.
“You can’t have a growth strategy without a strategy for China,” she said.
“China has the biggest contribution to global growth, is the third largest trading partner, and the world’s largest consumer market.
“The UK is second largest exporter of trade and services.
“We are mindful as all businesses are of security risks but it is really important that we have a strategy towards China.
“This Government has increased the economic engagement with China and including business within this does help us as a country.”
She added: “If we think about the future economy, there is a huge market in China and I think we mustn’t cut ourselves off from some of the opportunities there, even if in some areas there are difficult conversations and negotiations that need to be had.”
Peter Burnett, chief executive of the China-Britain Business Council, told the committee: “There are risks associated with technology advancement, AI, industrial development that they need to assess.
“Increasingly you will find them saying that they need to engage more in China to understand those risks and to develop some of the technologies along some of those risks themselves.”
Business
Trump says he’d be disappointed if Fed pick doesn’t cut rates; Warsh vows to be ‘independent actor’ – The Times of India
US President Donald Trump on Tuesday said he would be disappointed if his nominee for Federal Reserve chair, Kevin Warsh, does not cut interest rates right away after taking office if confirmed by the Senate. Trump, during an interview with CNBC’s “Squawk Box,” also said “we have to find out” about the construction costs of the new Federal Reserve building.Warsh, a former Federal Reserve official and financier, is currently facing Senate confirmation hearings where he has stressed his independence from political pressure.“The president never once asked me to commit to any particular interest rate decision, and nor would I agree to it if he had,” Kevin Warsh said under questioning by the Senate Banking Committee, as quoted by LA Times. “I will be an independent actor if confirmed as chair of the Federal Reserve.”Warsh told lawmakers that fighting inflation would be one of his main priorities if confirmed.“Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish,” Warsh said. “Inflation is a choice, and the Fed must take responsibility for it.”The comments come as investors closely watch his confirmation hearing, with inflation remaining at 3.3% annually and global tensions, including the war in Iran pushing up gas prices, adding pressure on the economy. Higher inflation typically leads the Federal Reserve to keep interest rates steady or raise them rather than cut them, as rate changes affect mortgages, auto loans, and business borrowing.Democrats on the Senate Banking Committee accused Warsh of shifting his stance on interest rates over time, supporting higher rates under Democratic presidents and lower rates during Trump’s presidency.Warsh, if confirmed, would take over at a time when inflation pressures make it difficult for the Federal Reserve to cut rates, even as Trump continues to push for lower borrowing costs. Trump has repeatedly urged rate cuts and has long clashed with current Fed chair Jerome Powell over monetary policy. Powell has also been the subject of a Department of Justice criminal probe after refusing Trump’s requests for faster rate cuts. Trump told CNBC that he does not plan to pressure the Justice Department to end that probe.
Business
Air fares soar by nearly a quarter, research shows
The consultancy Teneo says airspace restrictions caused by the conflict have forced airlines to reroute many flights.
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