The Government of Pakistan and Alibaba have signed a series of strategic Memoranda of Understanding (MoUs) to accelerate artificial intelligence (AI) development, strengthen the digital economy, and support small and medium-sized enterprises (SMEs).

The agreements cover key areas including AI, cloud computing, healthcare technology, digital skills training, e-commerce, SME development, and digital financial services. The signing ceremony took place at Alibaba’s headquarters in Hangzhou and was witnessed by Prime Minister Shehbaz Sharif and Alibaba Group Chairman Joe Tsai.

Pakistani organizations involved in the partnership include Ignite National Technology Fund (Ignite), Sky47, and the Small and Medium Enterprises Development Authority (SMEDA). On Alibaba’s side, the agreements were signed by Alibaba Cloud, DAMO Academy, Alibaba.com, and Koko Tech.

Prime Minister Highlights Digital Opportunities

Prime Minister Shehbaz Sharif praised Alibaba’s transformation into a global technology leader, highlighting its contributions to e-commerce, artificial intelligence, fintech, and talent development.

He emphasized that collaboration between Pakistan and Alibaba can drive digital inclusion, empower youth, modernize agriculture, and accelerate the digitization of Pakistan’s financial sector.

Alibaba Sees Strong Potential in Pakistan

Joe Tsai, Chairman of Alibaba Group, highlighted Pakistan’s growing digital potential and talented workforce.

“Pakistan is home to extraordinary talent and immense digital potential. We believe AI, cloud technologies, and embodied intelligence can play a transformative role in improving healthcare, empowering businesses to access global markets, and supporting long-term economic growth,” he said.

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AI and Cloud Computing Partnership to Strengthen Pakistan’s Technology Ecosystem

As part of the Pakistan Alibaba AI partnership, Ignite and Alibaba Cloud will work together to develop secure and localized AI and cloud solutions.

The collaboration includes the creation of AI foundation models for Urdu and regional languages. These technologies will support sectors such as education, healthcare, and agriculture.

In addition, the partnership aims to train and certify 500,000 individuals, including students, developers, and public sector employees, in AI and cloud technologies. A joint AI hackathon will also be launched to encourage innovation in smart agriculture, financial inclusion, and Urdu-language applications.

AI-Powered Healthcare Solutions Coming to Pakistan

DAMO Academy and Sky47 will introduce advanced AI healthcare solutions across Pakistan.

The initiative will deploy DAMO Academy’s multi-disease screening technology, which uses non-contrast CT scans to identify lesions that are often difficult to detect. This technology supports early diagnosis of cancers, including pancreatic and liver cancer.

Sky47 plans to implement the solution in major cities such as Islamabad, Lahore, and Karachi.

Furthermore, DAMO Academy and Ignite will collaborate with Pakistani universities to build expertise in embodied intelligence through online courses, workshops, and developer community programs.

SME Growth and Digital Exports Through Alibaba.com

To support Pakistan’s SME sector, Alibaba.com and SMEDA will help local businesses expand into international markets.

The initiative will provide AI-powered digital trade training to 10,000 businesses using Alibaba.com’s enterprise AI solution, Accio Work. This training will strengthen cross-border trade capabilities and improve export readiness.

Additionally, at least 2,000 SMEs will be onboarded through a dedicated “Pakistan Pavilion.” This digital marketplace will showcase Pakistani industries and connect busines

ses with more than 50 million buyers worldwide.

Services such as Trade Assurance and Verified Supplier certification will further enhance trust and support export growth.

Financial Inclusion Through Buy Now, Pay Later Services

Koko Tech, a Daraz Group company, has signed a cooperation agreement w

ith Ignite to expand Buy Now, Pay Later (BNPL) services in Pakistan.

Operating as a Non-Banking Finance Company (NBFC),

Koko Tech plans to invest US$3 million to expand digital payment solutions and create employment opportunities nationwide.

The initiative aligns with Ignite’s mission to promote technology innovation, strengthen financial inclusion, and support the growth of Pakistan’s digital economy.

A New Era for Pakistan’s Digital Economy

The Pakistan Alibaba AI partnership marks a significant step toward building a technology-driven economy. By investing in AI development, cloud computing, healthcare innovation, SME empowerment, and digital finance, both parties aim to create long-term economic opportunities and accelerate Pakistan’s digital transformation.

As these initiatives move forward, Pakistan is expected to strength

en its position as an emerging digital economy while empowering businesses, developers, students, and entrepreneurs

across the country.