Monday, May 05 2025

Will AI work with our demographic dividend?
For many years, Pakistan’s story — particularly, the case for investing — has largely pinned on some variation of the demographic dividend. Basically, the fact that we have a huge youth population of digital natives not only makes us a potential powerhouse as a consumer market but also an attractive source of raw talent. While the argument has merit, it’s not without caveats, which have an inverse relation with optimism. Traditionally, the counterpoints to the promise of demographic dividend have varied from the substandard quality of the education system to the more macroeconomic explanations, particularly the declining purchasing power. But of late, a new variable, artificial intelligence (AI), has been introduced into the mix, whose direction and quantum of impact are still a topic of debate. It’s not just about Pakistan: advancements in AI have prompted loads of predictions on the potential effect on employment.
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Samsung fights $520m India tax demand, points to Reliance practice
Samsung has asked an Indian tribunal to quash a $520 million tax demand for allegedly misclassifying imports of networking gear, arguing officials were aware of the practice as India’s Reliance imported the same component in a similar manner for years, documents show. Samsung becomes the second major foreign company in recent months to challenge an Indian tax demand. Volkswagen has sued Prime Minister Narendra Modi’s government in court for a record demand of $1.4 billion for misclassifying its component imports. In the Samsung case, tax authorities in January asked Samsung to pay $520m for evading the 10-20 per cent tariffs by misclassifying imports of a key mobile tower equipment, which it then sold to billionaire Mukesh Ambani’s telecom giant, Reliance Jio, from 2018 to 2021.
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Microdosing insurance via tech and telecom
For most Pakistanis, insurance remains a foreign concept — something distant, complicated, and often seen as unnecessary. But this disconnect comes at a cost. With insurance penetration at just 0.87 per cent of GDP in 2022, covering a mere 3pc of the population, compared to a global average of around 6.7pc, millions of families across Pakistan remain one accident, illness, or disaster away from financial ruin. This is not just a statistic; it is a reflection of a massive protection gap that exposes society’s most vulnerable to life’s shocks without a safety net. In comparison, regional peers, like China, have achieved insurance penetration rates of around 4pc of GDP, underscoring how far Pakistan lags behind. In 2022, Pakistan’s insurance density stood alarmingly low at just $14 (approximately Rs2,000).
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Friday, May 02 2025

AI system for cross-border trade
A Pakistani technology company has introduced AI Faceless Operations, a fully automated, round-the-clock system designed to digitalise and streamline cross-border trade processes. The solution aims to address major inefficiencies in the trade sector, which currently suffers an estimated annual loss of $36 billion due to outdated, paper-based systems that threaten up to 3 million jobs. The tech company ‘Galaxefi’ has launched a multilingual, AI-powered virtual assistant that enables users to manage trade operations through simple voice or chat commands. The assistant can automatically complete shipment details, generate customs and regulatory documents, provide real-time cargo tracking, and issue alerts in case of exceptions or delays.
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Wednesday, April 30 2025

PM Shehbaz touts $700m in foreign investment for IT sector
Prime Minister Shehbaz Sharif on Tuesday hailed what he described as around $700 million in new foreign investment pledges in the information technology sector, urging international stakeholders to continue supporting Pakistan’s journey as it is ready to lead the global digital economy. Addressing the Digital Foreign Direct Investment (DFDI-2025) conference, PM Shehbaz declared: “Pakistan is not waiting for the future, but shaping it.” The conference, attended by global tech leaders, investors and innovation champions, marked a significant step in Pakistan’s emergence as a key player in the global digital economy. PM Shehbaz, in his inaugural keynote address, reaffirmed the government’s commitment to positioning Pakistan as the next major tech destination in the world. “Our youth, aged between 15 and 30, constitute 60 per cent of the population. They are the architects of our digital future,” he said.
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