AI precision farming to boost crop yields by 15-20%: Finance Minister

February 18, 2025 (MLN): In the agricultural sector, AI-driven precision farming is expected to increase crop yields by 15% to 20%.

This was said by Finance Minister Muhammad Aurangzeb while addressing the AlUla conference for Emerging Market Economies organized by the International Monetary Fund (IMF).

Similarly, in the digital banking and services sector, AI has already contributed to a 25% year-on-year increase in IT export services, with even greater potential for growth in the future.

He highlighted that digital transformation, which is being accelerated by AI, is fundamentally about achieving better, cheaper, and faster solutions.

To sustain this momentum, it is imperative to provide the necessary resources, upskilling, and reskilling opportunities for the country's third-largest freelancer population.

Additionally, strengthening digital infrastructure will be crucial to ensuring continued progress.

Muhammad Aurangzeb emphasized that transformation is not just about technology—it encompasses people, processes, and technology, with the "people" aspect being particularly crucial for reskilling and upskilling.

This is essential to prevent a jobless growth scenario in any country.

Ultimately, the entire discussion revolves around productivity-led growth, which will serve as a key enabler and game changer for the economy.

Saudi Arabia’s influence in regional economic transformation is expanding, with Pakistan acknowledging the Kingdom’s progress under Vision 2030 as a valuable model.

He emphasized that Saudi Arabia’s leadership in economic reforms offers important lessons for Pakistan as it embarks on its own structural changes.

“Pakistan and the Kingdom of Saudi Arabia have been long-standing partners, one of the strongest partnerships that we have,” the report quotes Aurangzeb.

“As we go through our own structural reforms at this point in time, on the back of the macroeconomic stability that we have achieved, there’s a lot to learn from Vision 2030,” the minister said.

He also stated that the Kingdom is well ahead of its targets of Vision 2030, “so there’s so much to learn in Pakistan from our partners in Saudi Arabia.”

The finance minister also highlighted the growing Saudi investments in Pakistan, particularly in the business-to-business sector.

He pointed to recent developments such as Saudi Aramco’s foray into the downstream petroleum industry and ongoing talks concerning government-to-government agreements.

“We’ve already had a few investments coming through from Saudi Arabia in the B2B space, and then of course, we have just seen Aramco coming downstream, so these are all very, very good investments,” Aurangzeb said.

“There are a number of G2G transactions which are underway at this point in time to be announced later in the year”, he added.

Aurangzeb underscored the potential for boosting exports from Pakistan to Saudi Arabia, especially in the skilled labor sector.

He noted that this aligns with the Kingdom’s expanding workforce needs as it progresses toward its Vision 2030 objectives.

“Meanwhile, we remain grateful for the support that we have received from Saudi Arabia, especially with respect to our IMF program", the minister added.

The minister noted that the conference serves as an important multilateral platform to discuss economic resilience and cooperation among emerging economies.

Muhammad Aurangzeb expressed that ‘the careful fiscal management measures’ of the incumbent government have put it on the right track.

He emphasized the government’s commitment to implementing tough, but necessary policy choices to ensure long-term economic sustainability.

He also outlined key areas of focus, including taxation reforms, energy sector overhauls, and efforts to boost exports, which are crucial for stabilizing and growing Pakistan’s economy.

Muhammad Aurangzeb highlighted that the incumbent government has transformed the economic “DNA” of the country, shifting towards an export-led growth model.

He underscored that this strategic pivot will not only strengthen Pakistan’s global economic standing but also ensure more resilient and diversified growth in the future.

Meanwhile, a nine-member World Bank Executive Directors delegation is currently visiting Pakistan, overseeing portfolios of various countries within the World Bank.

The delegation will discuss economic development projects and investment opportunities in Pakistan.

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