THE IMPACT OF AI ON EMPLOYMENT IN PAKISTAN: A STUDY ON JOB DISPLACEMENT

Abstract

This paper considers the workforce implications of artificial intelligence (AI) in Pakistan, specifically the potential displacement and creation of jobs. Using a mixed-methods framework, this study unites quantitative examinations of employment statistics obtained from organizations such as the Pakistan Bureau of Statistics, World Bank, and Ministry of Planning, with qualitative data derived from expert surveys and case studies across critical industries— manufacturing, IT, banking, customer services, and healthcare. Quantitative analysis shows both health and quality of life. Pandemic changes, for instance, resulted in job losses of 25%–30% in ‘traditional’ areas, like manufacturing and banking, between 2018 and 2024, driven in large part by automation technologies (robotics, AI-based decision engines). On the contrary, sectors such as IT and healthcare have exhibited healthy growth, with IT workforce figures doubling and healthcare reporting a 66.7% boost; these numbers represent new opportunities for talent in areas such as AI development, cybersecurity, and data analytics. On qualitative analysis, most respondents indicated that they were not feeling ready to pursue jobs related to AI, pointing to a key skills gap and the need for robust reskilling initiatives and policies. In light of these findings, the paper recommends a National AI Employment Strategy that involves educational reforms, targeted reskilling efforts, and support for AI-based entrepreneurship. These findings imply that AI presents disruptive challenges to traditional employment models but also represents opportunities for economic diversification and growth in combination with proactive policy measures and workforce development strategies.