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The Pakistan Institute of Development Economics (PIDE) has called for responsible artificial intelligence (AI) adoption and inclusive fintech development, emphasizing trust, accountability, human oversight and evidence-based policymaking to support Pakistan’s digital transformation.
The Pakistan Institute of Development Economics (PIDE) has urged policymakers, researchers and industry leaders to adopt a responsible approach to artificial intelligence (AI) and fintech, stressing that Pakistan’s digital transformation should be driven by trust, inclusion and institutional accountability rather than technology alone. The recommendations were presented during a seminar examining the role of AI, fintech and big-data analytics in strengthening economic policymaking and public sector governance.
According to Business Recorder and Pakistan Institute of Development Economics (PIDE), the seminar, titled “Landscape of AI and Fintech in Pakistan,” explored how emerging technologies can improve public services while ensuring transparency, human oversight and the protection of sensitive information.
PIDE said Pakistan’s digital future should prioritise “responsible AI adoption and inclusive fintech development rather than technology for its own sake,” adding that stronger governance, transparent data practices and clear institutional accountability must underpin future reforms.
Addressing the seminar, Dr. Mustansar Ali Ghazanfar, Associate Professor of Artificial Intelligence at the University of East London, said AI and fintech should be guided by “three interconnected principles, including value, intelligence and accountability” to ensure long-term institutional benefits and sustainable digital transformation.
He explained that artificial intelligence can significantly improve policy research and evidence gathering, stating that “AI could accelerate policy research and evidence gathering, while financial and administrative data could provide deeper insights into economic activity.” However, he cautioned that “these gains would be meaningful only if supported by verified evidence, clearly defined ownership and human oversight.”
Dr. Ghazanfar stressed that organisations should first identify where AI can deliver measurable public value before implementing new technologies. He said institutions should determine “where they could create measurable value, the data required, the safeguards needed and who would remain accountable for AI-generated outputs.”
Discussing governance challenges, he observed that “predictive, generative and agentic AI systems involved varying levels of risk and autonomy,” requiring different levels of oversight depending on the sensitivity of data and the potential consequences of inaccurate outcomes.
He also encouraged organisations to move away from fragmented AI adoption, recommending that they “adopt approved tools, maintain documented evidence, ensure human review and regularly evaluate performance.” According to Dr. Ghazanfar, successful AI transformation is “primarily an institutional and cultural process rather than a purely technological exercise,” with people, processes and data remaining central to long-term success.
Highlighting Pakistan’s fintech landscape, he acknowledged progress in digital payment infrastructure but argued that success should not be measured solely through transaction volumes or account registrations. Instead, he said progress should be assessed through “active usage, affordability, consumer confidence, effective complaint mechanisms and improved financial resilience.”
He further noted that challenges remain in cross-border payments, digital readiness and financial inclusion, particularly for exporters, freelancers, women, rural communities and low-income groups. He also warned institutions against uploading confidential information to public AI platforms and recommended stronger data classification policies alongside secure environments for handling sensitive material.
To encourage responsible implementation, Dr. Ghazanfar proposed that PIDE launch “a structured 90-day pilot project to test AI-assisted research workflows” before expanding AI adoption across the institution. The seminar concluded by calling for trusted digital services, evidence-based policymaking, effective regulation, stronger public-private partnerships and practical AI applications that address Pakistan’s economic and institutional needs.
