Federal Minister for Information Technology and Telecom Shaza Fatima Khawaja announced a $1 billion [1] artificial intelligence fund and inaugurated Zong's new data centre.
This initiative marks a strategic shift toward a digital economy under the CPEC 2.0 framework. By integrating AI investment with physical infrastructure, Pakistan aims to establish a "Digital Silk Road" to modernize its technological landscape.
The new data centre in Islamabad serves as a cornerstone for this transformation. Khawaja said the facility is a key milestone in the country's digital evolution, providing the necessary hardware to support advanced computing, and data management.
The proposed $1 billion [1] AI fund is designed to prop up the digital economy by incentivizing innovation and technical development [2]. This financial commitment aligns with broader goals to link technology and infrastructure development through the China-Pakistan Economic Corridor.
Efforts to implement CPEC 2.0 have included a series of policy discussions. On April 16, 2026, officials held a dialogue focusing on governance reforms and the necessity of prioritizing skills development to ensure the framework's effectiveness [3].
These developments follow a pattern of increased cooperation between China and Pakistan. Previous engagements, such as the ninth CPEC Media Forum held on Dec. 24 [4], have called for stronger media and technological cooperation to advance the goals of the updated corridor agreement.
“Pakistan aims to establish a "Digital Silk Road" to modernize its technological landscape.”
The transition to CPEC 2.0 signals a pivot from traditional infrastructure projects, such as roads and power plants, toward high-tech investments. By focusing on AI and data centers, Pakistan is attempting to leapfrog into the digital age to attract foreign investment and create a tech-driven labor market, though success depends on the governance reforms discussed in April.
