The 2025 Human Development Report (HDR), titled “A matter of choice: People and possibilities in the age of Artificial Intelligence,” reveals a troubling stagnation in global human development, with Pakistan ranking 168 out of 193 countries. Released by the United Nations Development Programme (UNDP), the report highlights how the rapid rise of artificial intelligence (AI) offers both opportunities and risks for nations like Pakistan. While AI holds transformative potential, it could deepen inequalities unless harnessed inclusively.

Pakistan’s Human Development Challenges

Pakistan remains in the ‘low’ human development category, with a Human Development Index (HDI) value of 0.544. When adjusted for inequality, this drops sharply by 33.1% to 0.364, exposing deep disparities. The Multidimensional Poverty Index (MPI) stays stagnant at 0.198, reflecting persistent poverty. However, modest gains in the Gender Inequality Index (0.536, rank 145/172) and Gender Development Index (0.838) signal progress toward gender equity, aligning with global trends. These metrics underscore the urgent need for innovative solutions to reignite development.

The AI Opportunity for Pakistan

Despite economic and social hurdles, Pakistan is poised to become a tech powerhouse. With a large population, expanding digital infrastructure, and a vibrant tech ecosystem, the country is crafting a National AI Policy to drive inclusive growth. Dr. Samuel Rizk, UNDP Pakistan Resident Representative, notes, “Pakistan is emerging as a dynamic force in the technological space with great potential.” The HDR’s global survey supports this optimism: 70% of respondents in low-HDI countries like Pakistan expect AI to boost productivity, and two-thirds anticipate using AI in education, healthcare, or work within a year.

Risks of AI in an Unequal World

The HDR warns that AI’s rapid advance could widen global divides if not managed carefully. In Pakistan, where inequality already slashes HDI by a third, unchecked AI automation risks job displacement for low-skill workers. Only 13% of survey respondents fear job losses, but half believe their roles could be automated. Without strategic interventions, AI could exacerbate poverty and exclusion, leaving Pakistan’s most vulnerable behind.

Strategies to Harness AI for Development

The HDR outlines three key areas to ensure AI drives human-centered progress in Pakistan:

• Collaborative AI Economy: Build an economy where workers complement AI, not compete with it. Pakistan can train its youth in AI-related skills, creating jobs in emerging fields like data annotation and AI ethics.

• Human Agency in AI: Embed human oversight in AI design and deployment to ensure inclusivity. Pakistan’s National AI Policy should prioritize equitable access to AI tools, especially for rural and marginalized communities.

• Modernized Systems: Upgrade education and healthcare to leverage AI. For example, AI-driven diagnostics can improve healthcare access in remote areas, while AI-enhanced learning platforms can bridge educational gaps.

Pakistan’s Path Forward

Pakistan’s tech talent and digital growth position it to leapfrog development barriers. By investing in AI education, fostering public-private tech partnerships, and ensuring inclusive AI policies, Pakistan can transform challenges into opportunities. The HDR’s survey shows six in ten people globally expect AI to create new jobs, a sentiment Pakistan can capitalize on by preparing its workforce for an AI-driven future.

Redefine development

The 2025 HDR reveals a world at a crossroads: AI’s potential to redefine development is immense, but so are the risks of deepening inequality. For Pakistan, ranked 168 in human development, AI offers a chance to accelerate progress, from improving healthcare to empowering its youth. By making deliberate, human-centered choices, Pakistan can harness AI to break the stagnation cycle and build a more inclusive future.