Govt of Pakistan, Alibaba sign strategic MoUs to accelerate Ai development, digital economy, and SME growth

Hangzhou, China (Web Desk): Pakistan and Alibaba have signed multiple Memoranda of Understanding (MoUs) in Hangzhou, China, covering artificial intelligence, cloud computing, digital skills training, healthcare technology, e-commerce expansion, SME development, and digital financial services, in a major step toward accelerating Pakistan’s digital transformation.

The agreements were formalised at the headquarters of Alibaba Group in Hangzhou on 24 May 2026, in the presence of Prime Minister Shehbaz Sharif and Alibaba Group Chairman Joe Tsai. On the Pakistani side, the signatories included Ignite National Technology Fund, Small and Medium Enterprises Development Authority (SMEDA), and Sky47, while the Alibaba side included Alibaba Cloud, DAMO Academy, Alibaba.com, and Koko Tech.

Prime Minister Shehbaz Sharif praised Alibaba’s rapid evolution into a global digital powerhouse, highlighting its contributions in e-commerce, artificial intelligence, fintech, and talent development. He said the collaboration has the potential to improve lives in Pakistan through digital inclusion, youth empowerment, agricultural modernisation, and broader financial digitisation.

Joe Tsai said Pakistan has strong human capital and significant untapped digital potential, adding that AI, cloud technologies, and embodied intelligence could play a transformative role in healthcare improvement, business expansion into global markets, and long-term economic growth.

Under the AI and cloud cooperation plan, Ignite National Technology Fund and Alibaba Cloud will jointly develop secure, locally adapted AI and cloud systems for Pakistan. These will include foundational AI models for Urdu and regional languages, aimed at supporting education, healthcare, and agriculture. The partnership also plans large-scale training programmes to equip 500,000 people—including students, developers, and government employees—with AI and cloud skills, along with certification pathways. A joint AI hackathon will also be organised to promote innovation in smart agriculture, financial inclusion, and Urdu language technologies.

In healthcare, DAMO Academy and Sky47 will introduce AI-driven diagnostic tools across Pakistan. The system, based on multi-disease screening using non-contrast CT scans, is designed to detect early-stage cancers such as liver and pancreatic cancer that are often difficult to identify at early stages. The rollout is planned for major cities including Islamabad, Lahore, and Karachi. In parallel, DAMO Academy and Ignite will support universities in building expertise in embodied intelligence through courses, workshops, and developer engagement programmes.

For trade and exports, Alibaba.com and Small and Medium Enterprises Development Authority (SMEDA) will work together to help Pakistani small and medium enterprises access global markets. The initiative includes AI-powered digital trade training for 10,000 businesses using Alibaba.com’s Accio Work platform, and onboarding at least 2,000 SMEs through a dedicated “Pakistan Pavilion” to showcase local products to more than 50 million international buyers. Trade assurance tools and supplier verification systems will be used to improve trust and increase exports.

In financial technology, Koko Tech, a Daraz Group company, and Ignite National Technology Fund have agreed to introduce and scale a Buy Now, Pay Later (BNPL) service in Pakistan as part of a non-banking financial company model. Koko Tech plans to invest 3 million US dollars to expand digital payment services and create local employment opportunities, aiming to strengthen financial inclusion and support the broader growth of Pakistan’s digital economy.

The initiative overall reflects a coordinated effort to expand Pakistan’s digital ecosystem through partnerships in AI, cloud infrastructure, healthcare innovation, e-commerce, SME development, and fintech.