Key points
- Experts stress human oversight and data safeguards
- Fintech growth must improve financial inclusion
ISLAMABAD: Pakistan should build its artificial intelligence (AI) and financial technology (fintech) ecosystem around trust, inclusion and institutional accountability.
Pakistan Institute of Development Economics (PIDE) made the recommendation during a seminar, where speakers called for technology adoption focused on measurable public value rather than innovation for its own sake.
The institute organised the seminar titled “Landscape of AI and Fintech in Pakistan” to examine how AI, fintech and big-data analytics could strengthen economic policymaking without compromising public trust, institutional integrity or sensitive information.
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Associate Professor of Artificial Intelligence at the University of East London, Dr Mustansar Ali Ghazanfar, said AI and fintech adoption should be guided by three interconnected principles — value, intelligence and accountability — to deliver sustainable institutional benefits.
AI could accelerate policy research and evidence gathering, he said, while financial and administrative data could provide deeper insights into economic activity.
But such gains would be meaningful only when backed by verified evidence, clearly defined ownership and human oversight, Ghazanfar said.
Institutions should first identify their operational needs before adopting AI tools by addressing key questions.
On top them are determining where the technology could generate measurable value, what data would be required, what safeguards were necessary and who would remain accountable for AI-generated outputs.
Ghazanfar said predictive, generative and agentic AI systems involved different levels of risk and autonomy, requiring oversight proportionate to data sensitivity and the potential consequences of errors.
He called for a shift from fragmented AI use towards governed institutional workflows involving approved tools, documented evidence, human review and regular performance assessments.
“AI transformation” should be viewed primarily as an institutional and cultural process rather than a technological exercise, he said, stressing that people, processes and data remained central to successful digital reforms.
On fintech, Ghazanfar acknowledged improvements in Pakistan’s digital-payment infrastructure but said progress should not be measured solely by transaction volumes or account registrations.
Instead, the sector’s performance should be assessed through active usage, affordability, consumer confidence, effective complaint mechanisms and improvements in financial resilience, he said.
Pakistan’s AI usage challenges
Challenges remain in cross-border payments, digital readiness and financial inclusion, particularly for exporters, freelancers, women, rural communities and low-income groups.
Ghazanfar also warned institutions against uploading confidential research, financial records, internal documents or personal information onto public AI platforms. He recommended data classification and secure environments for handling sensitive information.
AI could assist researchers in locating sources, organising evidence and preparing initial drafts, he said, but human experts must verify factual claims and retain final decision-making authority.
To promote responsible adoption, Ghazanfar proposed that PIDE launch a structured 90-day pilot to test AI-assisted research workflows before considering broader implementation.
The seminar also called for greater private-sector innovation through effective regulation, stronger public-private partnerships and practical AI applications aligned with Pakistan’s available resources.
For Pakistan, the discussion highlights a broader challenge accompanying rapid digitalisation: ensuring that advances in AI and fintech translate into wider financial access, stronger policymaking and better public services without weakening accountability, privacy or public confidence.
Pakistan’s digital economy has expanded rapidly as banks, fintech firms and public institutions adopt mobile payments, digital banking, data analytics and artificial intelligence.
The State Bank of Pakistan has promoted digital financial services and financial inclusion, alongside initiatives to modernise the country’s payments infrastructure.
At the same time, the growing use of AI has raised concerns over data privacy, cybersecurity, algorithmic bias and accountability.
Policymakers and experts are therefore increasingly focused on ensuring that technological innovation delivers wider economic benefits without undermining public trust.
