Haq's Musings

Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics. Subjects include personal activities, education, South Asia, South Asian community, regional and international affairs and US politics to financial markets. For investors interested in South Asia, Riaz has another blog called South Asia Investor at http://www.southasiainvestor.com and a YouTube video channel https://www.youtube.com/channel/UCkrIDyFbC9N9evXYb9cA_gQ

Showing posts with label Digital Public Infrastructure. Show all posts

Sunday, October 6, 2024

Is Pakistan Getting Ready For AI Revolution?

Generative artificial intelligence (GenAI) has taken the world by a storm. It has drawn the attention of academia, businesses and governments around the world. This technology is expected to transform almost every sector from business and commerce to government, industries and defense. Are Pakistanis aware of its potential? Is Pakistan getting ready for what is being described as the "AI Revolution"? Let's examine the answers to these questions.

AI awareness is rising among Pakistan’s general public. The country ranks third with 76% of people being aware of ChatGPT, according to Stanford University’s AI Index Report 2024 covering a survey of 31 countries, including the United States, Europe and East Asia. India (82%), Kenya (81%), Indonesia (76%), and Pakistan (76%) have the highest awareness rates in the world. Brazil and Canada have 64% awareness, UK and Japan 61%, China, Germany and France 60% and the US 55%. Poland reported the lowest awareness, at 43%. Globally, 17% of users utilize it daily, 36% weekly, and 16% monthly. India (36%), Pakistan (28%), and Kenya(27%) report the highest levels of daily usage.

Pakistan is among the top 4 countries for enrollment in Coursera online GenAI courses, according to Jeff Maggioncalda, CEO of Coursera. India, Egypt, Pakistan, and Brazil, make up more than half (52%) of GenAI enrollments on Coursera. It offers more than 4,600 courses and 55 Professional Certificates in up to 21 popular languages, including Arabic, Hindi, and Spanish. Coursera, a global online education platform, was launched in 2012 by two Stanford Computer Science professors, Andrew Ng and Daphne Koller.

Pakistan's HEC (Higher Education Commission) has established a partnership with Coursera to give access to online quality education in Pakistan. As a result, more than 200 universities have gained access to Coursera’s library of courses. Over 267,000 courses have been completed with students logging over 1.4 million learning hours. More than 45,000 learners have achieved deep-skills specialized certifications from internationally recognized institutions, the most popular specializations being Communication, Data Analysis, and Leadership and Management, according to Coursera.

Ashar Aziz Foundation, created and funded by Pakistani-American technology entrepreneur Ashar Aziz, has sponsored Advanced AI Bootcamps at the National University of Science and Technology (NUST) in Islamabad. The bootcamp series not only provides theoretical knowledge but also emphasizes practical, project-based learning, according to NUST.

The first AI bootcamp, which focused on Deep Neural Networks (DNNs), was successfully completed at NUST in November 2023. The second bootcamp provided participants with in-depth knowledge and hands-on experience in the development and application of LLMs (Large Language Models). Ghulam Ishaq Khan Institute of Engineering Sciences & Technology (GIKI) also joined this initiative in 2024, conducting its own DNN-focused bootcamp. Participants have the opportunity to work with advanced technologies, including access to a 10xH100 NVIDIA GPU AI supercomputer, ensuring they are well-prepared to tackle real-world challenges in AI. As part of its ongoing efforts, NUST plans to partner with additional universities across Pakistan to further scale this initiative, ensuring that more students have access to high-quality AI training, according to NUST.

Smaller towns in Pakistan are also setting up AI programs with the help of Pakistani-Americans. For example, Stanford educated AI expert Shoaib Lari and Silicon Valley based technology executive Jalil Shaikh have helped Islamia University Bahawalpur start an AI program. Jalil Shaikh is now working with US-based companies to place the first group of graduates from this program.

STEM education underlies Artificial Intelligence. Pakistan stands 4th in the world with 642,562 students enrolled in STEM courses– behind Nigeria (675,371), the US (4,639,771) and India (6,000,967), according to Coursera's Global Skills Report 2023. My own estimate based on HEC data is that STEM enrollment in Pakistan exceeds one million.

The Pakistan government has released its National AI Policy Draft for comments. It focuses on how AI can help the country promote its national competitiveness and improve the lives of its citizens by outlining a wide range of developmental initiatives necessary for awareness and adoption of AI, reimagining the transparent and fair use of personal data using AI, and stimulating innovation through industry-academia collaborations and investments in AI-led initiatives. The Pakistan government has set up a National Center for Artificial Intelligence (NCAI) at the National University of Science and Technology (NUST). NCAI has created a a consortium model consisting of 6 public sector universities with 9 specialized research centers spread across Islamabad, Lahore, Karachi, Peshawar.

Pakistan has also seen several private-sector led initiatives to create greater awareness of AI. For instance, Karachi.AI is recognized as a premier community for Applied AI practitioners. Established in 2017, the community proudly hosts over 10,000 members representing various domains. Its mission revolves around three central pillars: raising awareness, promoting engagement, and driving execution. Karachi. AI hosts regular meetups in Karachi, which are also live streamed on its YouTube channel, along with other educational content about AI.

In addition to skilled human capital, the GenAI apps require a lot of digital public infrastructure, powerful computers and large data centers to securely store and rapidly access vast amounts of data. A number of private investors are jumping in to build data centers in Pakistan. Mari Petroleum Company Limited (MPCL) is planning to develop data centers across the country as part of an expansion into digital infrastructure. Chakwal Spinning Mills Limited, has recently said it was pivoting to develop data centers.

Friday, July 19, 2024

Pakistan's Digital Public Infrastructure (DPI) Initiative Transforming Lives

Pakistan's journey to build a digital public infrastructure (DPI) began in March 2000 with the establishment of NADRA, the National Database and Registration Authority. The Gates Foundation defines DPI as follows: "DPI is a digital network that enables countries to safely and efficiently deliver economic opportunities and social services to all residents. DPI can be compared to roads, which form a physical network that connects people and provides access to a huge range of goods and services...... strong DPI has three foundational systems—identity, payments, and data exchange—that together can make life easier in important ways".

Digital Public Infrastructure. Source: World Economic Forum

Transformational Impact:

An article recently published on the World Economic Forum website sheds light on how Pakistan's digital public infrastructure is transforming lives in rural Pakistan. Here's how it begins:

"On a scorching day with temperatures soaring to 42 degrees, Manzoora, a mother from the flood-stricken district of Shaheed Benazirabad, rural Sindh, Pakistan, made a significant leap: she withdrew cash from her own bank account for the very first time. This milestone was made possible through a mobile cash transfer programme initiated by the Sindh government, which partnered with digital service providers to empower citizens like Manzoora. This is just one example of how DPI is changing the lives of millions of Pakistanis".

An earlier UNDP report titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood has also described the socioeconomic impact of technology in Pakistan in the following words:

"The world as we know it has been and is rapidly changing. Technology has proven to be one of the biggest enablers of change. There has been a significant emphasis on digital training, tech education, and freelancing in the last several years especially during the pandemic, through initiatives from the government, private and development sectors. Covid-19 acted as a big disrupter and accelerated the digital uptake many folds. In Pakistan, we saw the highest number of digital wallets, online services, internet-based services and adaptability out of need and demand".

Digital Identity:

NADRA launched Computerized National Identity Card (CNIC) the same year it was established. It uses biometric data and personal information to confirm the identity of the cardholder as a citizen of Pakistan. The CNIC card is used across the country for voting in elections, opening bank accounts, issuing passports, getting driver's licenses, registering marriages and divorces, completing real estate transactions, participating in social safety net programs like Benazir Income Support, obtaining mobile phone numbers/sims, purchasing tickets for airlines and railways, etc etc.

The introduction of CNIC was a "foundational change, positioning Pakistan among a select group of nations equipped to manage comprehensive digital identities for over 240 million citizens", according to the World Economic Forum. Within four years of launching the Benazir Income Support Program (BISP) – a social protection initiative to alleviate poverty – CNIC issuance to adults increased by 72%.

Pakistan Instant Payment System. Source: State Bank of Pakistan

Payments:

Digital identity enables payments from the government to citizens as well as financial transactions among individuals, businesses and government entities. The introduction of RAAST, an instant low-cost payment system launched in 2021 by the State Bank of Pakistan, has spurred digital payments in the country. It seamlessly and securely connects government entities, a variety of banks, including microfinance banks (MFBs), electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs).

QR Codes:

This year, the State Bank of Pakistan has launched P2M (Person to Merchant) services. These allow people with electronic wallets in their mobile phones to pay for goods and services using merchants' QR codes. “The P2M service will enable payment acceptance by businesses using quick response (QR) codes, Raast Alias, IBAN and request to pay (RTP),” the Central Bank said in an announcement.

"All REs (regulated entities) shall enable…capabilities for processing P2M transactions via their delivery channels including mobile apps, internet banking portals and USSD channels (where applicable) by March 01, 2024." The central bank asked Raast merchant service providers (MSPs) to ensure that customers are not charged any fee on their purchases, by merchants or third parties.

"MSPs may…charge a reasonable fee from merchants for the services provided; however, they are encouraged to initially waive off such charges to promote merchant adoption."

RAAST Uptake:

Raast, the State Bank of Pakistan's Instant Payment System, is playing an important role in facilitating free, convenient and secure real-time transactions across the country, according to a report published by the State Bank of Pakistan. During Q3 of FY24, Raast processed 140 million transactions totaling Rs. 3,437 billion.

Digital transactions took center stage in Pakistan's financial landscape during Q3 FY 2023-24, capturing a commanding 83% of 844 million total retail payments processed by Banks and Electronic Money Institutions (EMIs), while the remaining 17% were Over-the-Counter (OTC) transactions at banks’ branches, reports Mettis Global.

Pakistan National Socioeconomic Registry. Source: Maintains

National Socioeconomic Registry:

The National Socio-economic Registry has been created . It will be regularly updated to keep it current and deliver services to the Pakistanis most in need. The effort started in earnest in 2020 to hand out Rs. 12,000 per family to 3 million most affected by the COVID19 lockdown. Here's how a Pakistani government website describes the digital registry architecture:

"The Cognitive API architecture for Ehsaas’ National Socio-Economic Registry 2021 is one of the six main pillars of ‘One Window Ehsaas’. With the survey, which is building the registry currently 90.5% complete nationwide, Ehsaas is firming up its plans to open data sharing and data access services for all executing agencies under the Poverty Alleviation and Social Safety Division (PASSD). Data sharing will be done through the Cognitive API Architecture approach. The deployment of Ehsaas API architecture for data sharing will allow executing agencies to access data from the unified registry in real-time to validate beneficiary information. This will empower them to ascertain eligibility of potential beneficiaries".

DPI Future Plans:

In future, Pakistan is set to launch several ambitious DPI initiatives, including expanding the RAAST payment system, implementing a nationwide digital health records system, and launching a blockchain-based land registry. These projects promise to drive efficiency and transparency across multiple sectors, positioning Pakistan as a pioneer in the global digital landscape, according to a report by the World Economic Forum.